THAILAND

Country Public Procurement Profile Survey (with E-Government Procurement Overview)
COUNTRY Thailand
Respondent Agency Ministry of Finance
Date of First Submission Thursday, June 30, 2011
Date of Last Update Wednesday, November 30, 2011
Part A.  Country Public Procurement Profile (Only those answers selected by the respondent from a multiple choice menu would appear below.)
1 Does your country have a central Public Procurement Authority (PPA) with legal authority through legislative enactment, executive decree or administrative regulation to act as functional and normative body in public procurement?
a.      Yes
2 The PPA’s mandates involve the following responsibilities (please select as many as applicable, one per line):
a.       formulation of procurement policy and regulations
g.       professional advise and guidance in public procurement
h.      procurement capacity development and training
Others (please specify):
3 The PPA reports to:
c.      Ministry of Finance
Others (please specify):  Cabinet
4 Number of people employed by the PPA: (Please provide an organizational chart of the PPA and email address for communication, if possible)
d. 15 and more
Email address for communication with PPA:  opm@cgd.go.th
5 Does PPA have a website?
a.      Yes
Link to PPA website:  www.gprocurement.go.th
6 The PPA website covers the following areas (please select as many as applicable, one per line):
a.       procurement related regulations and documents
b.      news, events and policy initiatives related to public procurement
c.       interaction with users through procurement forum, Q&A, customer survey & feedback, policy dialogue & experience sharing, etc
d.      e-training and self learning modules for procurement practitioners
f.       specific opportunities and notices for bidders
g.       posting of contract award with name of the winning bidder and contract value
i.        centralized online system for procurement monitoring of procuring entities
j.        centralized online system for collecting procurement data and statistics
k.      linkage to an e-procurement system with actual procurement transactions
Other functions (please specify):
7 Do you have a public procurement law or any other regulatory act with legislative power? (Please provide a link or a scanned copy of its English version.) If yes, which of following are true (please select as many as applicable, one per line)?
c.       the law does not cover procurement conducted by state owned enterprises
f.       the law allows framework contracts
g.       the law establishes a fully decentralized system for procurement decision making with no prior review (i.e. each procuring entity is fully responsible for its procurement)
k.      the law mandates standardization of procurement practices mandating use of common procedures and standard bidding documents and forms
l.        the law currently provides principles and general procedures  that makes provision for the  use/adoption of e-procurement
n.      the law mandates the use of the registration and classification system as pre-qualification of contractors to bid
o.      the law provides for an administrative review mechanism for complaint that allows bidder to challenge procuring entity’s decision before filing for judicial review to the court
8 Do you have a strategic plan or reform agenda for developing the procurement system in your country? (Please provide a copy or link)
a.       Yes, this is a long term procurement strategy updated 3-5 years and its key outcomes are incorporated into national development strategy documents of the country
Others (please specify):
9 What kind of initiatives and assistance in your view is needed to improve your public procurement system in the near future? [Please select your five most important initiatives among the choices, one per line.]
a.       Conduct an overall assessment of the effectiveness of the country’s public procurement system
b.      Assess compliance with country’s public procurement rules and regulations by procuring entities
c.       Assess effectiveness of the public financial management system and public administration system to generate support for public procurement policy reform
f.       Launch communication campaign to improve public awareness of country’s public procurement policy
h.      Analyze the structure and business practices of PPA and support efforts to improve its capacity and performance
Others (please specify):
Additional notes, if any:
10 What is the size of the public procurement of your country? Please select the closest corresponding values based on most recent available information or your rough assessment?
I. Average annual procurement under national and local budget
f.    more than US$ 1 billion
g. Other (please indicate a more specific amount, if available):  US$ 10.9375 billion
II. Average annual procurement by State Owned Enterprises (those who are subject to the procurement regulations)
f.    more than US$ 1 billion
g. Other (please indicate a more specific amount, if available):  US$ 9.375 billion
III. Average annnual procurement under Official Development Assistance (Donor-funded projects)
f.    more than US$ 1 billion
g. Other (please indicate a more specific amount, if available):  US$ 40.625 billion
Part B.  e-Government Procurement Planning (Only those answers selected by the respondent from a multiple choice menu would appear below.)
1 Has your government formed or implemented a concrete plan for development of e-Gp?  Please select only one answer.  (If yes, please email a copy of the plan to mkhaltarpurev@adb.org).
e.   No, there is no formal plan or agenda for e-Gp
2 Which of the following best describes the functionality of your planned e-Gp initiatives? (Please select as many as applicable, one per line.)
a.       a single website that consolidates and publishes all national information and policies related to public procurement
c.       e-publication system for real time procurement notices
d.      e-publication of procurement awards and results
f.       e-bidding system for bidders to submit their bid or proposals online and observe the online public opening of the bid
g.       e-contracting system which allows award notification and contract signing through the system
h.      e-payment system which allows invoicing and payment through the system
i.        online reverse auctions or electronic negotiations
j.        online purchasing from e-catalogs or supplier marketplace
k.      electronic evaluation of bidders technical and financial proposals
l.        electronic supplier registration system
3 Do you have plans to implement any new e-Gp system at the national level? (Please select as many as applicable, one per line.)
a.       a single website that consolidates and publishes all national information and policies related to public procurement
c.       e-publication system for real time procurement notices
d.      e-publication of procurement awards and results
f.       e-bidding system for bidders to submit their bid or proposals online and observe the online public opening of the bid
g.       e-contracting system which allows award notification and contract signing through the system
h.      e-payment system which allows invoicing and payment through the system
i.        online reverse auctions or electronic negotiations
j.        online purchasing from e-catalogs or supplier marketplace
k.      electronic evaluation of bidders technical and financial proposals
l.        electronic supplier registration system
4 Does the scope of your e-GP plans include the following? (Please select as many as applicable, one per line, and please provide a copy of the relevant documents if possible.)
a.    improving legal architecture to facilitate e-Gp system implementation
g.    piloting e-Gp module
k.   drafting amendments to the public procurement law and its implementing rules and   regulations to facilitate  e-Gp operations
l.   generating public awareness and conducting consultation with suppliers to promote development of e-Gp system
Part C.  e-Government Procurement System Implementation (Only those answers selected by the respondent from a multiple choice menu would appear below.)
1 General Information about the e-GP system presently in operation
a.  System Name:  electronic Government Procurement (e-GP)
b.  Website Address:  www.GProcurement.go.th
c.  Administration/Operator of the System: Office of Public Procurement Management, Comptroller General’s Department, Ministry of Finance
d.  Agency(s) using the System: All government agencies, State Owned Enterprises and Local Government Organization Administration
e.  Year of launch: 2004
2 Brief description of the system in terms of coverage and main functional modules
a.  e-publication/downloading: The bid notice and the detail bid information including TOR are encrypted under the enhanced PGP protocol and sent by the government purchasing unit. The bid notice and bid information including TOR are signed digitally by the government agency who requests the tender. CGD will decrypt the encrypted information and check the information authentication in accordance with the time set by the government purchasing unit who requests the tender and distribute the bid notice to all those registering under the same UNPSPC as the bid notice. Before distributing the bid notice, the bid notice will be checked with the GFMIS for confirmation of the procurement plan consistency. Those who wish to take part in the bid can log in the system and download the detail bid information, TOR and tender submission forms, anytime until the specific deadline, to prepare the tender proposal. The system accepts any query for bid clarification and request for more information from those who download the detail bid information in the time period as specified in the bid. The answer and clarification by the government agency who is the TOR owner will be posted in the CGD website and distributed to all who download the bid information. (implement 2012)
b.  e-bidding: Using for the non-standard products and services of high value that require  complex specification and high expertise. (implement 2012)
c.  e-contracting:  The government agency checks the information at the CGD website before signing the contract or issuing the purchase in order to ensure the correct information and not missing any additional contract conditions. Since the current law regarding to e-Document does not recognize the legal status at the same level as the paper document and the court just cannot refuse to consider the e-Document it is quite risky to use the e-Contract in the government procurement. Therefore, we will propose to use the paper contract as well as the paper contract guarantee as in the present system. However all standard contracts in the government procurement are published in the CGD web site for public access. (implement 2012)
d.  e-payment:  e-GP in Thailand interfaces with Government Fiscal Management Information System (GFMIS). After government officers create draft of contract, then they have to make purchase order (PO) in GFMIS System in order to disburse.
e.  e- reverse auction:  In Thailand we use reverse auction. It is an electronic auction where suppliers bid online against each other for contracts within 30 minutes. Bidders will bid for the lowest price at service providers. There are 12 service providers who were given license from CGD.
f.  e-catalog purchasing:  The model used in CGD e-Market-managed catalogs is the “public” model which creates a single catalog with aggregated content from many suppliers, as Sellers, and makes that catalog available to many government agencies, as Buyers. However, CGD    e-Market also provides only the exit point for connection to the Seller-managed catalog hosted at the Seller site under the CGD specified format and procedure. This connection may be available for large enterprises which have a large number of catalogs and product details.
The multi-supplier catalog enables an intelligence fuzzy search and comparison of similar products from multiple suppliers. More-detailed product information is also provided after the search returns a set of candidate products: product specifications and/or catalog, product pictures, if any, a list of Sellers classified by province.
The product types are organized in a hierarchy of parent-child relationship. Each parent would contain common attributes that are common to all of its children (implement 2012).
g.  e-Guarantee/security:  The system will not accept the guarantee if the current date exceeds deadline specified in the invitation. If the checking result is correct, the system will receive the e-Guarantee and ask the owner to secure it. The secured e-Guarantee is stored in a temporary file and sent to the CGD staff. Then the CGD staff validates the participant digital signature. Only valid signature goes to the step of checking the e-Guarantee with its financial institute via Internet. The system updates valid status in the temporary file that kept the e-Guarantee if the result form the financial institute is valid. The system alerts the authorized CGD staff to sign his digital signature on the valid e-Guarantee. The secured e-Guarantee is saved in a permanent file. (implement 2012)
3 Other government IT systems that the e-Gp system links to (please select as many as applicable):
d.      Banking
f.       Contractors and Suppliers Registration and Classification
Others (please specify):
4 How do the bidders input and submit their proposal/tender documents into your e-Tendering  System, if any (please select as many as applicable)?
c.       send in paper documents
Other methods (please specify):
5 If bid evaluation is carried out online, briefly describe the process of online evaluation.
6 Is bid security/guarantee required on your e-procurement system? (Please explain briefly.)
Yes, it is. Security/guarantee is required on e-GP and we also interface with Bank in order to submit bank guarantee to e-GP and after finishing distribution bid information, then government agency will return e-Guarantee to the bid remainders. In case of the announcement of the bid winner, the system will return e-Guarantee to bidder listed in the 3-Lowest Price Bidders. For the case of the bid cancellation, e-Guarantee is returns only the bidders listed in the Bid Guarantee and the status is not return. Then, the system secures e-Guarantee returning information and save it in the bid guarantee.
7 Does the e-Gp system require specific operating system, browser?
Yes, e-GP requires Internet Explorer.
8 Describe the security method (e.g. digital authentication) used in the e-Gp system.
Security mechanisms such as encryption, digital signature, access control, data integrity, and authentication exchange can be applied to provide security services.  With the use of modem cryptography, these security mechanisms can be implemented. (implement 2012)
9 Are electronic and paper documents legally equivalent in your country?
Yes, they are, except in case of digital signature.
10 Briefly describe the management of the e-Gp system in terms of :
a.  the business model (managed in house, outsourced etc.):  e-GP in Thailand designs and creates all requirements in house and then we hire outsourced company to support hardware and software for e-GP system.
b.  users fee for suppliers or procuring agencies (if any):  There are no charges for any users.
c.  training (available programs, e-learning, manuals etc):  There are many available programs for users such as e-learning, training and user manual.
d.  certification ( if required who issues, how):  There is no certification for any users.
e.  Call Center (Q&A for user requirements etc.):  We have Help Desk to answers any questions of users. Help desk system is the system to support the procurement enquiry on both the procurement regulations and the operations in the e-GP system. The system classifies the questions and answers in the database to facilitate the information retrieval of the concerned officer and to process the questions and answers in form of Frequently Asked Questions (FAQ) for ease of retrieval.
f.  Self teaching (modules for user requirements):  e-learning for e-GP system are put on www.GProcurement.go.th
g.  Service centers (physical service centers to meet user requirements):  There are 2 kinds of service center. The main service center is Office of Public Procurement Management located at Ministry of Finance. However, for e-Auction method, bidders are required to propose the price via service providers which have been licensed by CGD.
h.  Any incentives offered to encourage adoption of this system by other procuring entities:  There are not any incentives offered to encourage adoption of this system by other procuring entities. All government agencies have to use e-GP system because it enforces by the cabinet resolution.
11 Please provide the following statistics (if available):
a. number of procuring entities legally required to use the e-Gp system: 48,711
b.number of procuring entities registered in the e-Gp system as of December 31 2010:  18,692
c. number of procuring entities that actually used the e-Gp system since its inception:  18,692
d.value of the contracts awarded in 2010  (in USD):   12,633 million USD
e. value of the contracts (awarded) registered in the e-Gp in 2010 (in USD):  1,701 million USD
f. active business (contractors and suppliers) in the country as of December 31, 2010:  542,490
g. contractors/suppliers registered in the System as of December 31, 2010:  3,204
12 How do you encourage procuring entities and suppliers to use the e-Gp system?
We inform suppliers about receiving public procurement information directly at the right time if they register to e-GP.
13 Do you allow individual procuring entities to customize national e-Gp systems? If yes, in what way(e.g. use a different website design with their logo)
No, they do not
14 Are individual agencies free to use different systems to those approved at the central level? If yes, is there any central approval procedure for this?
No, they are not
15 What are the key success factors you observe in introducing or implementing e- e-Gp in your public procurement system framework (please list them if any)?
a. Strong political will
b. Strong stakeholder’s collaborations
c. Capacity building on procurement
16 What are the major problems you faced in introducing or implementing e-Gp system under you public procurement framework (please list them)?
a. Low using of information
b. Lack of involvement from civil society
c. Need to simplify procurement method
17 What approach to the e-Gp development is suitable for your country’s public procurement system and why? (Please briefly describe your answer.)  OPTIONAL
Developing on e-GP phase 3 will be suitable for my country’s public procurement system because it simplifies procurement method. e-GP phase 3 will be divided into 2 main system which are e-Bidding and e-Market. e-Bidding system will provides for the non-standard products and services of high value that require complex specification and high expertise and e-Market will apply for standard products and services that do not require complex specifications but their demand is high.
THANK YOU!