Government agencies are governed by the Procurement Act. The Procurement Act will be enforced to cover all agencies from central, regional, and local government; state enterprises under the budget procedures law; public organizations; state power monitoring organizations; independent organizations; constitutional bodies; administration offices of courts; government universities, parliamentary bureaus, or bureaus under the control of the parliament; governmental independent bodies; and other bodies as prescribed in the ministerial regulations issued under the Procurement Act.

Does not apply.

The Procurement Act does not provide an exemption to apply it for procurement between government agencies. In addition, a government agency may procure the supplies for other government agencies, as agreed upon.

All types of contracts are governed by the Procurement Act, which include supplies agreement, service agreement, construction agreement, hire of consultants agreement and services of design work or construction supervision services agreement. If necessary, a contract to be signed by a government agency may contain terms or details that are different from the sample contract (provided by the Policy Committee, and approved by the Office of the Attorney-General), as long as they are as essential as those in the sample contract and do not cause disadvantage to the government agency. If the chief of a government agency finds that any additional or amended term would cause disadvantage to the agency, or has loopholes, the draft of the contract must be sent to the Office of the Attorney-General for consideration.

Contracts or written agreements that are executed may not be amended, except in the following circumstances, whereby the authorized person may exercise discretion to consider and approve an amendment:

1. When the government agency does not execute a contract using the standard form, or does not submit a draft contract to the Office of the Attorney-General for consideration and approval, the government agency must submit the contract to the Office of the Attorney-General for consideration and approval subsequently. Upon consideration and approval by the Office of the Attorney-General, or revisions to the contract per the Office of the Attorney-General's opinion, the contact will be deemed valid.
2. If it is necessary to amend the contract or written agreement, provided that the amendment does not adversely affect the interests of the government agency.
3. Amendment for the benefit of the government agency or the public interest.
4. Other circumstances as specified in the ministerial regulations issued under the Procurement Act.

If a government agency contemplates issues concerning disadvantages imposed upon the agency, or the lack of tightly drafted content as a result of an amendment to a contract or written agreement, the agency must send the draft amended contract to the Office of the Attorney-General for consideration and approval.

Amendment of a contract or written agreement must be in compliance with the Budget Procurement Act or other applicable law. If it is necessary to increase or decrease the financial limit, or increase or decrease the time required for delivery or operations, these must be agreed simultaneously.

In the case of amendment to a contract or written agreement to increase the financial limit, if upon combining the original financial limit with the increased financial limit, the person authorized to approve the procurement is changed, then approval for amendment of the contract or written agreement by the authorized person to approve the combined amount of financial limit is required.

In the case of amendment to a contract or written agreement to decrease the financial limit, approval by the authorized person to approve the original financial limit is required.

Government agencies must execute contracts using the form specified by the Policy Committee, subject to approval by the Office of the Attorney-General. The content and conditions may vary, subject to type of agreement.

The Procurement Act allows only one bidder to win a bid. The requirement for competition for a single order will depend on the type of procurement method undertaken, in accordance with the conditions and criteria specified under the Procurement Act. See details in item 3.(a) regarding procurement procedures.

The Private Investment in State Undertakings Act, B.E. 2556 (2013)(the "PPP Act") is the main law governing private-sector participation in state undertakings. The PPP Act defines state undertakings to include, among other things, an undertaking in which any or several state agencies, state enterprises, government agencies, or local administrations have the power and duty to engage in under the law.

A project with a value from Baht 1 billion or more, or any increased value as specified by a ministerial regulation, shall be in accordance with the rules and procedures stipulated in the PPP Act, and the rules and procedures for calculation of the project value shall be prescribed by the Private Investment in State Undertaking Policy Committee (the "PPP Committee").

A ministerial regulation dated 1 April 2016 was issued to increase the value of a project from Baht 1 billion to Baht 5 billion.

The PPP Act also empowers the PPP Committee to issue notifications prescribing the rules and procedures for private investment in a project with a value lower than Baht 5 billion, to be complied with by state agencies. Accordingly, the PPP Committee issued the Notification re: Principles and Procedures for Private-Sector Investment in Projects with a Value Lower than the Value Prescribed in section 23 of the PPP Act, dated 19 April 2559 (2016), to regulate projects with a lower value.

A project with a total investment lower than Baht 1 billion is defined as a "small project," while a project with total investment of Baht 1 billion to 5 billion is defined as a "medium-sized project."

The granting of a concession must follow the requirements under the PPP Act or specific laws governing the particular activity, e.g. the Petroleum Act; the Organization to assign Radio Frequency and to regulate the Broadcasting and Telecommunications Businesses Act; the Telecommunications Business Act; the Broadcasting and Television Business Act.

Officials must strictly comply with the Procurement Act. Any official who intentionally or negligently fails to comply, or acts in bad faith or beyond his or her power or duty, including circumstances that facilitate a person offering a price for work or obstructing fair competition, shall be deemed to have committed a disciplinary infraction and will be subject to civil or criminal liability, which may also relate to the Act on Offenses Relating to the Submission of Bids to State Agencies, B.E. 2542 (1999), generally referred to as the "Bid Rigging Act."

The Bid Rigging Act is intended to maintain and encourage competitive bidding processes, and focuses on conspiracies to reduce competition, including subcontract bid rigging and bid suppression. Violation of this law may lead to severe criminal penalties.