Companies based in depopulation zones or outside the Greater Seoul area will be given priority in winning government contracts when evaluation scores are tied. Procurement procedures for research and development will also be streamlined, including allowing single-bid negotiated contracts for research equipment needed for ultra-innovation economy projects.

The Ministry of Economy and Finance announced Tuesday that it had put proposed amendments to the enforcement decree and enforcement rules of the State Contracts Act out for public notice.

The central building of Government Complex Sejong in Eojin-dong, Sejong, where the Ministry of Economy and Finance is located [Newsis]
The central building of Government Complex Sejong in Eojin-dong, Sejong, where the Ministry of Economy and Finance is located [Newsis]

The proposed amendments revise the method for determining contract awards when bidders receive identical scores on price and performance capability in the government procurement qualification review.

Under the current system, a winner is chosen by lottery when scores are tied. Under the new rules, companies in depopulation zones would receive first priority, followed by firms outside the Greater Seoul area if no such company is in the running. A lottery would be held only when no bidder meets either condition.

The amendments also include measures to expand regional firms' participation in government contracts. The ceiling for single-bid negotiated contracts available to companies in depopulation zones would be raised from 20 million won ($13,500) to 50 million won. The change is intended to narrow the gap between regions caused by the concentration of economic activity in the Greater Seoul area.

In addition, the single-bid negotiated contract limit for research equipment and similar items needed for national R&D projects would be raised from 20 million won to 50 million won. Research equipment designated for ultra-innovation economy projects by the minister of economy and finance would be eligible for negotiated contracts outright. The measures are designed to shorten equipment procurement timelines and accelerate project implementation.

Companies suspected of submitting sham bids would be excluded from exemptions on bid bond payments, and firms that fail to submit review documents or withdraw from the review process without justification would face restrictions on future bid eligibility.

The award method for public construction projects valued between 10 billion won and 30 billion won would also change. In response to criticism that a growing number of identical-price bids has reduced the ability to differentiate among bidders, the system would shift to a technology-based qualification review placing greater weight on technical capability and project execution capacity.

The disqualification period for bid-rigging ringleaders would be extended from one year to one year and six months, while the period for those who merely participated would increase from six months to one year.

The ministry said it would collect public feedback through Aug. 31 before submitting the amendments to review by the Ministry of Government Legislation and deliberation by the vice ministerial and Cabinet meetings, with implementation targeted for November. The technology-based qualification review system is set to take effect in January next year.


y2k@heraldcorp.com