Procurement Products
Q1.
What is the Excellent Product System of the Public Procurement Service?
The Excellent Product System of the Public Procurement Service was introduced in 1996 to improve the quality of procured goods and is a system that designates excellent products through strict evaluation embodying excellent technology and quality produced by small and medium-sized enterprises. The products designated as excellent products are procured to demanding organizations by signing contracts in accordance with the National Contract Act.
Q2.
What is the basis of the Excellent Product System?
Excellent products of the Public Procurement Service are designated and managed in accordance with Article 26 of the Act on Public Procurement Business and Article 30 of the Enforcement Decree of the same Act and the Excellent Procurement Product Designation and Management Regulations (notified by the Public Procurement Service).
Third-Party Unit Pricing Agreements
What is a third-party unit price contract?
A system in which only the unit price is set in advance when signing a contract for manufacturing, purchasing, and processing demanded goods that are commonly needed by demanding organizations, and each demanding organization directly requests delivery to the contracting party.
Third-Party Unit Price Contract Delivery Requirements and Procedures
STEP 01
Sign a unit price contract
STEP 02
Request for installment delivery
STEP 03
Contract fulfillment
STEP 04
Inspection / Examination Request
STEP 05
Inspection and Testing
STEP 06
Billing
STEP 07
Payment
  • 01
    Unit Price Contract Signing
    Signing a unit price contract for a third party (Registration of products in the Nara Market Shopping Mall)
  • 02
    Installment Delivery Request
    Purchasing party requests for partial delivery (required electronically through Nara Market)
  • 03
    Contract fulfillment
    Contract fulfillment (Contractor delivers goods to the purchasing organization)
  • 04
    Inspection/Testing Request
    After receiving the goods from the demanding organization, the contractor requests an inspection/examination from the demanding organization through Nara Marketplace.
  • 05
    Inspection and Verification
    Inspection and Verification (Delivery of goods and issuance of receipts to the requesting agency through the national procurement portal [Nara Marketplace])
  • 06
    Billing
    Contractor invoices electronically through Nara Marketplace
  • 07
    Payment
    Payment to the contract (finalized)
Learn More about Third-Party Unit Pricing
Category Excellent Procurement Product Contract MAS Contract
Overview In order to improve the quality of procured products and support the sales of SME and venture companies, products with excellent performance, technology, or quality are designated as 'excellent procured products' and supplied before others to each demanding organization through a contract.
  • A contract system with two or more contracting parties so that demanding organizations can choose the same or similar types of goods in terms of quality, performance, and efficiency to meet the diverse needs of each public institution.
  • A system in which a contract is entered through negotiation with parties who meet certain criteria such as delivery performance and management status. The demanding customer can freely select and use products from the Nara Marketplace comprehensive shopping mall (http://shopping.g2b.go.kr)
Eligible Items
  • For products and software produced by SMEs, products with applied technologies as follows have been included in the designation:
    • New equipment product (NEP) or those that contain new equipment (NEP)
    • Products with new technology (NET)
    • Products with patents and utility models
    • Copyrighted GS-certified products
    • Products with successful technology development in R&D projects
    • Innovative products
  • Products whose specifications (models) have been finalized and commercialized
    • At least 3 companies with an annual delivery record of KRW 30m or more
    • Establishment of common commercial standards and test standards for companies
  • Products that can be contracted by unit price (including third-party unit price contracts)
  • Other items deemed necessary by the head of the Public Procurement Service, etc.
Purchase Method A method of standardizing materials commonly used in the demand period and requiring delivery directly from the supplier to the consuming organization A method of purchasing products that are commonly required by consuming organizations and commercialized in the market by signing an annual temporary contract with 3 or more parties as contract partners and then requesting delivery whenever there is a demand from consuming organizations
Two-Stage Competition None
  • A two-stage competition is conducted when the demanding organization's one-time delivery request falls under the following conditions:
    • Competitive products between SMEs: expected purchase amount of KRW 100m or more
    • General products: KRW 50m or more (SME manufactured items: more than KRW 50m, but less than KRW 100m)
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