GOVERNMENT PROCUREMENT ACT

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GOVERNMENT PROCUREMENT ACT — 법갈피

Article 14(Special Cases concerning Contracting Methods) #

(1) The Administrator of the Public Procurement Service may enter into a contract according to the contracting methods prescribed by Presidential Decree, if he or she deems it necessary to purchase and supply procurement commodities required by each end-user institution. <Amended on Jun. 9, 2020>

(2) Where the Administrator of the Public Procurement Service purchases standardized products in a scale not smaller than the scale prescribed by Presidential Decree, among competing products manufactured by small and medium enterprises in Article 6 of the Act on Facilitation of Purchase of Small and Medium Enterprise-Manufactured Products and Support for Development of Their Markets, in order to increase opportunities for small enterprises in Article 2 (2) of the Framework Act on Small and Medium Enterprises and micro enterprises in Article 2 of the Framework Act on Micro Enterprises to receive orders, he or she may execute a procurement contract through competitive bidding among joint suppliers composed of small and medium enterprises in Article 2 of the Framework Act on Small and Medium Enterprises. <Amended on Mar. 31, 2020>

(3) If it is found that bidders negotiated and agreed on bidding prices in advance during the competitive bidding pursuant to paragraph (2) or joint suppliers colluded in bidding for successful bidding of a particular person, the Administrator of the Public Procurement Service shall take necessary measures, such as the revocation of a decision on a successful bidder or the cancellation, termination, etc. of a contract, against such bidders: Provided, That this shall not apply where an exceptional situation prescribed by Presidential Decree exists, such as where no suitable contractor or manufacturer exists, except those against whom necessary measures, such as the revocation of a decision on a successful bidder or the cancellation, termination, etc. of a contract, shall be taken.

(4) The Administrator of the Public Procurement Service shall place restrictions on the qualification of members of a joint supplier referred to in the main clause of paragraph (3) for participating in bidding pursuant to Article 27 of the Act on Contracts to which the State is a Party.

(5) The scope of standardized products, the organization of joint suppliers, etc. pursuant to paragraph (2) shall be prescribed by Presidential Decree.

Article 21(Investigation into Unfair Procurement Practices) #

(1) Upon receipt of a report on any of the following practices that harm fairness in the procurement process for demand commodities (hereinafter referred to as "unfair procurement practices"), the Administrator of the Public Procurement Service may require public officials under his or her jurisdiction to demand the submission of relevant materials from the other party to the contract, the bidder, or the person who has submitted a quotation through the integrated national electronic procurement system (referring to the integrated national electronic procurement system (hereafter in this Article referred to as "other party to the contract, etc."), or may require them to visit any office, place of business, factory, etc. to inspect facilities, documents, etc., if necessary for investigating the report: <Amended on Jun. 9, 2020; Jan. 2, 2024>

1. Counterfeiting or falsifying any document regarding the bid, contract, inspection upon delivery, etc., or submitting any false document;

2. Delivering goods in violation of direct production standards;

3. Delivering goods with any false label of the place of origin;

4. Delivering goods inconsistent with the contract standards without prior consent of the end-user institution, etc.;

5. Violating Article 13 (2);

6. Obtaining designation of exemplary procurement commodities, etc. under Article 26 (1) by fraud or improper means.

(2) A public official conducting the inspection under paragraph (1) shall present identification verifying his or her authority to relevant parties.

(3) A public official conducting the inspection under paragraph (1) shall do so within the minimum extent necessary for enforcing this Act, and shall not abuse his or her authority for other purposes.

(4) Where any unfair procurement practice is found, the Administrator of the Public Procurement Service may require the other party to the contract, etc. to rectify such practice, and shall take dispositions or other actions pursuant to relevant statutes and regulations, such as the Act on Contracts to Which the State Is a Party, or the terms and conditions of the contract.

(5) Where required to rectify under paragraph (4), the other party to the contract, etc. may raise an objection to the Administrator of the Public Procurement Service, as prescribed by Presidential Decree.

(6) Where the other party to a contract, etc. gains any profit from any unfair procurement practice under paragraph (1) 1 through 6, the Administrator of the Public Procurement Service may redeem it.

(7) Where deemed necessary, the head of an end-user institution may request an investigation into unfair procurement practices from the Administrator of the Public Procurement Service, and if the Administrator of the Public Procurement Service requests him or her to submit materials necessary for investigation, he or she shall comply therewith, unless there is a compelling reason not to do so.

Article 26(Designation of Exemplary Procurement Commodities) #

(1) The Administrator of the Public Procurement Service may designate and publicly notify any of the following commodities or trademarks as exemplary procurement commodities or exemplary procurement joint trademarks (hereafter referred to as "exemplary procurement commodities, etc." in this Article) to improve the quality of procurement commodities:

1. Exemplary procurement commodities: Commodities produced by any of the following enterprises, the performance, technology or quality of which meets the standards prescribed by Presidential Decree:

(a) Any of the small and medium enterprises referred to in Article 2 (1) of the Framework Act on Small and Medium Enterprises;

(b) Any of the enterprises which meets the criteria prescribed by Presidential Decree, such as the amount of sales and the period elapsed since it has become a middle-standing enterprise, among the middle-standing enterprises under Article 2 of the Special Act on the Promotion of Growth and the Strengthening of Competitiveness of Middle-Standing Enterprises;

2. Exemplary procurement joint trademarks: Joint trademarks developed and retained by small and medium entrepreneurs (referring to small and medium entrepreneurs under Article 2 (1) of the Framework Act on Small and Medium Enterprises) not less than the number prescribed by Presidential Decree to enhance sales activities, the technology, quality certification, etc. of which meet the standards prescribed by Presidential Decree.

(2) The Administrator of the Public Procurement Service may take necessary measures to increase the purchase of and to expand a market for exemplary procurement commodities, etc., as prescribed by Presidential Decree.

(3) The Administrator of the Public Procurement Service may suspend the effect of or revoke the designation of exemplary procurement commodities, etc. designated under paragraph (1), in cases prescribed by Presidential Decree, including failure to meet initial designation standards.

(4) Details on designation procedures and period of exemplary procurement commodities, etc., the suspension of effect of designation, and the revocation of designation, shall be prescribed by Presidential Decree.

Article 27-2(Innovative Product Support Center) #

(1) In order to support the public purchase of innovative products under Article 27, the Administrator of the Public Procurement Service may designate an innovative product support center (hereinafter referred to as "support center") to fully or partially perform the following business affairs to support the public purchase of innovative products:

1. Identifying and recommending innovative products;

2. Providing education, public relations, and consulting services for end-user institutions and suppliers;

3. Assisting suppliers that have obtained the designation of innovative products with their entrance into overseas procurement markets;

4. Policy research and overseas case surveys to revitalize the public purchase of innovative products.

(2) The Administrator of the Public Procurement Service shall have a prior consultation with the Minister of Economy and Finance on the designation, etc. of support centers.

(3) In any of the following cases, the Administrator of the Public Procurement Service may revoke the designation of a support center or issue an order to suspend operation of its business for a specified period not exceeding six months: Provided, That he or she shall revoke the designation if a support center falls within subparagraph 1:

1. Where it has obtained the designation by fraud or other improper means;

2. Where it has lost its ability to perform its business affairs or business;

3. Where it ceases to meet the criteria for designation under paragraph (6).

(4) Where the Administrator of the Public Procurement Service intends to revoke the designation of a support center pursuant to paragraph (3), he or she shall hold a hearing.

(5) The Administrator of the Public Procurement Service may fully or partially subsidize expenses incurred by a support center in performing its duties, within the budget.

(6) The standards for designation of support centers, procedures for designation and revocation of designation, and other matters necessary for the operation, etc. of support centers shall be prescribed by Presidential Decree.

[This Article Newly Inserted on Jan. 2, 2024]

Article 30(Determination of Sales Price of Stockpile Commodities) #

(1) The sales price of stockpile commodities shall be determined by the Administrator of the Public Procurement Service by considering the purchase cost (including expenses directly incurred for management, including the price of goods and distribution management costs; hereinafter the same shall apply), demand and supply of commodities in question, the trend of price and any other aspects.

(2) Where the sales price of stockpile commodities exceeds the purchase cost, the amount of excess shall be deemed the revenue of the special account for procurement.

(3) The Administrator of the Public Procurement Service shall require an end-user institution or a private company to pay the sales price before delivering stockpile commodities: Provided, That he or she may permit the end-user institution or private company to pay the sales price after delivering stockpile commodities, at its request, if deemed necessary for efficient execution of a stockpile project.

(4) A person who intends to purchase any stockpile commodities (excluding the Administrator of the Public Procurement Service and private business operators under Article 32 (2)) may pay the purchase price of the stockpile commodities by credit card, debit card, etc. (hereafter referred to as "credit card, etc." in this Article) through an institution designated by the Administrator of the Public Procurement Service, as prescribed by Presidential Decree, to make vicarious payment of purchase prices of stockpile commodities (hereafter referred to as "institution for vicarious payment of price of stockpile commodities" in this Article).

(5) Where the purchase price of any stockpile commodities is paid by credit card, etc. under paragraph (4), the date of approval granted by the institution for vicarious payment of price of stockpile commodities shall be deemed the date of payment of the purchase price.

(6) An institution for vicarious payment of price of stockpile commodities may receive fees from persons who intend to purchase stockpile commodities, in return for the vicarious payment of the purchase prices.

(7) Matters necessary for the designation and operation of institutions for vicarious payment of price of stockpile commodities, fees for vicarious payment, etc., shall be prescribed by Presidential Decree.

Article 33(Entrustment of Facility Management) #

(1) If deemed necessary to perform public procurement services, the Administrator of the Public Procurement Service may entrust some of the affairs to another administrative agency or a legal entity, organization, or individual with the management and operation of the warehouses, container yards, and other facilities belonging to the special account for procurement, services specified in the subparagraphs of Article 3, affairs specified in the subparagraphs of Article 18 (1) and in Articles 19 (1) and 20, as prescribed by Presidential Decree: Provided, That when he or she entrusts any affairs specified in Article 18 (1) 2, 19 (1), or 20, he or she shall entrust such affairs to a laboratory accredited under Article 23 of the Framework Act on National Standards or any other statute.

(2) The Administrator of the Public Procurement Service or any administrative agency, legal entity, organization, or individual that has been entrusted with affairs under paragraph (1) (hereinafter referred to as "entrusted institution") may keep and manage commodities, other than procurement commodities, in the facilities as a trustee.

(3) The Administrator of the Public Procurement Service may wholly or partially subsidize expenses incurred in performing the entrusted affairs under paragraph (1) within budgetary limits of the special account for procurement.

(4) An entrusted institution shall keep and preserve records on the execution of the relevant affairs.

(5) If necessary, the Administrator of the Public Procurement Service may require an entrusted institution to submit materials relevant to its business or may authorize public officials under his or her jurisdiction to enter a relevant office or place of business and inspect the performance of quality management.

(6) If an entrusted institution falls under any of the following subparagraphs, the Administrator of the Public Procurement Service may revoke the entrustment or order its inspection service suspended for a fixed period of one month to one year: Provided, That in cases falling under subparagraph 1, the entrustment shall be revoked:

1. Where it is entrusted with the affairs by fraud or improper means;

2. Where the head of the institution that is entrusted with the affairs requests the revocation of the entrustment;

3. Where its accreditation as an authorized institution in the field of inspection is wholly revoked by the relevant agency;

4. Where the inspection is conducted by fraud or improper means;

5. Cases where it is unlikely to ensure the reliability or fairness of its service, as determined and publicly notified by the Administrator of the Public Procurement Service.

(7) Matters necessary for the entrustment of affairs under paragraph (1), the designation, administration and supervision of entrusted institutions, the suspension of inspection services of entrusted institutions and the revocation of entrustment shall be determined and publicly notified by the Administrator of the Public Procurement Service.

GOVERNMENT PROCUREMENT ACT

Article 1(Purpose) #

Article 2(Definitions) #

Article 3(Scope of Public Procurement Services) #

Article 4(Relationship to Other Statutes) #

Article 5(Procurement Policy Deliberation Committee) #

Article 6(Encouragement of Social Responsibilities) #

Article 7(Procurement Education) #

Article 8(Procurement Day) #

Article 9(Procurement Statistics) #

Article 10(Requests for Providing Data) #

Article 11(Requests for Entering into Contracts) #

Article 12(Unit Price Contracts for Third Parties) #

Article 13(Contract with Multiple Suppliers) #

Article 14(Special Cases concerning Contracting Methods) #

Article 15(Price Payment) #

Article 16(Fees) #

Article 17(Arrears) #

Article 18(Quality Management of Procurement Commodities) #

Article 19(Quality Management of Safety Management Commodities) #

Article 20(Special Cases concerning Quality Management) #

Article 21(Investigation into Unfair Procurement Practices) #

Article 22(Suspension of Transactions) #

Article 23(Payment of Monetary Awards) #

Article 24(Assistance in and Vicarious Execution of Procurement Services of End-User Institutions) #

Article 25(Assistance to Suppliers) #

Article 26(Designation of Exemplary Procurement Commodities) #

Article 27(Support for Public Purchase of Innovative Products) #

Article 27-2(Innovative Product Support Center) #

Article 28(Cooperation in International Procurement and Assistance in Entry into Overseas Procurement Markets) #

Article 29(Purchase and Supply of Stockpile Commodities) #

Article 30(Determination of Sales Price of Stockpile Commodities) #

Article 31(Derivatives Trading) #

Article 32(Private-Public Joint Stockpiling Projects) #

Article 32-2(Establishment of Mutual Aid Association) #

Article 32-3(Programs of Mutual Aid Association) #

Article 32-4(Reporting and Investigation) #

Article 32-5(Application Mutatis Mutandis of Other Statutes) #

Article 33(Entrustment of Facility Management) #

Article 34(Legal Fiction as Public Officials in Application of Penalty Provisions) #

Article 35(Administrative Fines) #