The National Legislative Assembly recently passed the Government Procurement and Supplies Management Bill (the Bill). The Bill will be enforced to cover all government agencies, including state-owned enterprises, local government administrations, universities under government control, administrative office of courts, and independent state organizations. The Bill requires that the four principles must be followed in government procurement: value for money, transparency, efficiency and effectiveness, and accountability.

Generally, the Bill covers the procurement of goods and services and the hiring of consultants. There are three procurement methods that must be used in accordance with the conditions prescribed therein:

General invitation method: A government agency shall invite general entrepreneurs that are qualified under the qualifications as specified by the government agency to submit a proposal.

Selection method: A government agency shall invite at least three (3) entrepreneurs that are qualified under the qualifications as specified by the government agency to submit a proposal, unless there are fewer than three entrepreneurs that meet the qualifications.

Specific method: A government agency shall invite one (1) specific entrepreneur that qualifies under the qualifications specified by the government agency, to submit a proposal, or to directly negotiate a price within the specified financial limit.    

In addition, the Bill also requires that certain types of entrepreneurs must be registered so that they are qualified to submit bids to government agencies, and the form of the agreement must be specified by a policy committee. Moreover, a moral agreement may be required to be entered into by both private and government entities as an anti-corruption measure, by agreeing that they will not be acting fraudulently in the course of such procurement, for certain types of agreements. Furthermore, there shall be an observer who is impartial and having no interest in the procurement project, to observe the procurement from a preparation of draft scope of work to the end of the project.

The Bill also specifies the evaluation of performance of entrepreneurs, and failure to meet the criteria will subject such entrepreneur to temporary suspension from making any further bid to a government agency.

The Bill is now awaiting royal assent before being promulgated in the Government Gazette, and it will enter into effect 180 days after the promulgation. Once the Bill becomes effective, the Regulations of the Office of the Prime Minister on Procurement B.E. 2535 (1992) will be repealed.

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