The Comptroller General's Department has authorised 10 operators of electronic marketplaces to provide e-auctions, while some operators see the current price war on the fees they charge as a threat to such services.

Executives of 10 e-marketplace operators, who are to provide technical services for e-auctions conducted for procurement contracts by state agencies and state enterprises, yesterday signed an agreement with the department.

Boonsak Jiempreecha, director-general of the department, said the 10 companies were capable of arranging electronic bidding processes for the government and state enterprise agencies, as their electronic systems - both hardware and software - meet the criteria.

The 10 companies are CAT, Bids Dimension, Pantavanij, ICN System, Pop Network, Software Link, Free Internet, Datamat, Intelligence Solution & Service, and Newtron Auction.

Colonel Rangsee Kitiyanasap, adviser to Pantavanij Co Ltd, expressed concern about a price war over fees in the industry. He said that since the beginning of the year, big firms had been slashing prices to secure e-auction deals.

"If this price-cutting war continues, it will harm competition in the long run because small firms could not survive," he said. He suggested the department set clearer rules to prevent the price war intensifying.

The department now allows e-marketplace operators to charge fees of Bt10,000 for projects worth between Bt2 million and Bt10 million when they win an auction, Bt20,000 for projects worth up to Bt25 million, and Bt30,000 for projects worth more than Bt25 billion. Transport costs may also be charged.

Rangsee said the fees were reasonable and e-marketplace operators could make a profit and still survive in the business, although under the present competitive environment, some firms were offering half the reference cost.

State agencies should select operators that offer reliable services rather than cheaper prices, he suggested. The total service charge is estimated to be only Bt200 million to Bt300 million annually, Rangsee added.

Boonsak, however, said he needed more information before the Comptroller General's Department would take any action to solve the problem.

He also said the present number of e-marketplaces was 176 units located nationwide, designed to adequately facilitate government procurement through electronic systems. Any government project worth more than Bt5 million must be conducted under an electronic auction.

Wichit Chaitrong

The Nation