Public Procurement Service Strengthens Delivery Capability Evaluation to Block 'Evasive Bidding Practices'

[Asia Economy (Daejeon) Reporter Jeong Il-woong] On the 5th, the Public Procurement Service (PPS) announced that it will block illicit bidding practices by strengthening the evaluation of bidders' delivery capabilities during the public procurement bidding process.

This measure aims to prevent the disruption of public procurement order caused by indiscriminate participation in supply bids and the involvement of bid intermediaries (brokers). The PPS will introduce a two-stage competition (simultaneous specification and price bidding) method for selecting successful bidders in major items, where bidders propose and evaluate the goods to be delivered in advance, instead of selecting winners based mainly on price as was done previously in supply bids.

Additionally, when necessary, bidders will be required to submit supply plans during the contract performance capability evaluation, and restricted competition using performance limitations will be expanded.

In particular, the PPS plans to strengthen the qualification verification of contracted companies by expanding the application of Multiple Award Schedule (MAS), which had been mainly promoted for manufactured goods, to supply items as well.

Kang Shin-myeon, Director of the Purchasing Bureau at the PPS, said, “We expect that issues of indiscriminate bidding participation by bid intermediaries will improve through the strengthening of delivery capabilities,” and added, “The PPS plans to continue consulting with related ministries on additional countermeasures.”

Meanwhile, prior to this measure, the PPS prepared and has been implementing the ‘Measures to Prevent Indiscriminate Participation in Supply Bids’ since May, and the strengthening of delivery capabilities is a follow-up action.

The prevention measures include ▲ converting 302 detailed item names of supply goods to manufacturing bids ▲ promoting the conversion of 11 defense material items to MAS ▲ revising related regulations to prohibit contractors from transferring contract-related claims on unsettled receivables due to incomplete contract performance ▲ imposing sanctions for the maximum period stipulated by law without mitigation when restricting bidding participation qualifications due to contract non-performance caused by indiscriminate participation in supply bids.

This content was produced with the assistance of AI translation services.