"From a Corporate-Centered Perspective," Public Procurement Service Revises Excellent Procurement Products System

The Public Procurement Service (PPS) is revising the ‘Regulations on Designation and Management of Excellent Procurement Products.’ The revision reflects the comprehensive feedback from the industry collected since February.

The PPS announced that it will revise and implement the ‘Regulations on Designation and Management of Excellent Procurement Products’ starting from the 1st. The revision focuses on operating a flexible and prompt designation and contracting system from the perspective and position of companies, and easing unnecessary regulations to reduce the burden on the industry.

Provided by Public Procurement Service

According to the revised regulations, the designation period for excellent procurement products will be guaranteed as much as possible, such as extending the designation period when production is difficult due to reasons beyond the company’s responsibility.

In cases where production is difficult due to natural disasters or urgent new certification or standard requirements without prior notice under the Administrative Procedures Act, the designation period for excellent products can be suspended for up to six months upon the company’s request, thereby extending the designation period.

In special cases, suspension of the designation period for more than six months is also allowed after review, minimizing damage to companies.

The grace period for the start date of the excellent procurement product designation period will also be extended from 120 days to a maximum of 180 days to prevent loss of designation period due to specification adjustments and contract preparations.

Additionally, when the designation period is extended for the first time, extension of the existing contract will be allowed to enable prompt contract conclusion.

Previously, companies were required to enter into a new contract when extending the designation period for the first time. However, going forward, companies designated as excellent procurement product providers can choose either to enter into a new contract or to extend the period of the existing contract upon the first extension of the designation period.

Provided by Public Procurement Service

As a measure to ease unnecessary regulations, the PPS will reduce the documentation burden for designation of excellent procurement products and expand the conditions for designation extension. When applying for designation of excellent procurement products (including adding specifications), companies holding New Technology Certification (NET) or New Excellent Product Certification (NEP) will be exempted from submitting patent-related documents.

Among the credibility evaluation items, the ‘Technology Grade Evaluation (T3 or higher)’ will be recognized regardless of detailed product names to reflect the overall technology level. The conditions for designation extension will also be expanded to recognize participation in technology development projects not only by the central government and related agencies but also by local governments and public institutions conducting their own projects. However, projects that involve technology calibration or related consulting rather than technology development will be excluded.

The criteria for on-site inspections to verify direct production and restrictions on manufacturing companies in collaborative groups have also been improved. The ‘on-site inspection’ criteria, which check whether manufacturing companies produce products directly beyond competition among small and medium enterprises, will be replaced with a ‘manufacturing process chart’ reflecting the actual production process of the company. Also, when a technology-holding company and manufacturing companies form a collaborative group, the number of manufacturing companies allowed will be expanded from one to up to two.

In addition, the PPS will operate a product information maintenance period and postpone the implementation of additional selective item delivery restrictions through the regulation revision.

Minor errors or mistakes in product information that do not affect contract performance will be allowed to be corrected during the maintenance period without separate sanctions.

Im Gi-geun, Administrator of the PPS, said, “The improvement of the excellent procurement product regulations is the result of promptly reflecting the demands from the field so that companies can feel the changes.” He added, “The PPS will continue to act as a partner for small and medium enterprises, removing unnecessary regulations from the perspective of companies and creating a business-friendly environment to support corporate growth through technology development.”

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