Korea ON-line E-Procurement System G2B (Government to business)?
The Public Procurement Service (“PPS”) has 34,000 customers, including national agencies, local governments, educational institutions, government-invested institutions, and other institutions.
According to the “Government Procurement Act,” national agencies and local governments shall request the PPS to conduct procurement services, if necessary, for commodities or a facility constriction contract over a certain size.
- The institutions that should request the PPS to conduct procurement services in accordance with Article 2 (4) of the Government Procurement Act (proper agencies) are the following:
- National agencies
- Local governments
- Educational institutions
- Other public institutions
- The institutions that may request the PPS to conduct procurement services in accordance with Article 4 of the Enforcement Decree of the Government Procurement Act (proper agencies) are the following:
- - Government-invested institutions, governmental research institutions, and public corporations
- - School juristic persons and private schools under the “Private School Act”
- - Legal entities established pursuant to any special acts
- - Special corporations with public objectives, as described in subparagraphs 3 and 5 of Article 38 of the Enforcement Decree of the “Act on the Promotion of Saving and Recycling of Resources”
- - Principal offices of the Minister of Health and Welfare and social welfare foundations under Article 25 (1) of the Enforcement Decree of the “Social Welfare Services Act.”
Korea ON-line E-Commerce System computerizes all national procurement administrative procedures, including requests for purchase and payment, thus providing ONE-STOP procurement services to all users of pubic institutions and procurement enterprises through the G2B‘s single point of contact.
Multiple Award Schedule (MAS)
Where it deems necessary to satisfy the various demands of public institutions that are purchasing commodities that are commonly required by each, the MAS applies to the transaction concerned to give public institutions an opportunity to select equal or similar commodities in quality, performance, and efficiency through the following procedures: i) Designate two or more persons, ii) Investigate their management condition and delivery performance, and iii) Enter into a contract with eligible persons through a price negotiation.
Unit Price Contract for a Third Party
In connection with commodities that are commonly required by a number of end-user institutions, i) An end-user institution can, if necessary for the reduction of days of procurement and timely supply, directly (not through the PPS) request a contractor to supply commodities, and ii) The PPS makes relevant payments billed by the contractor based on the receipt, and then notify the end-user institution of such payments in accordance with Article 76 of the Enforcement Decree of the Government Procurement Act (“Unit Price Contract for a Third Party”).