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Commercial
Bidding of DAPA
*
Notice : DAPA to Have Equal Military Representation
* (2005-09-29 News Release)
The envisaged Defense Acquisition Program Administration set to
launch in January will have an equal number of officers from the
army, navy and air force among its 920-member staff. The Defense
Ministry reported the plan to the National Assembly Thursday. A
military official said the selection of the officers will be based
on their career, education background, work evaluation and ethics.
The establishment of the agency is aimed at securing a more transparent
and efficient system of acquiring military supplies and weapons
systems. One of the agency's main tasks will be to curb the widespread
corruption scandals that have plagued force improvement programs
in recent years.
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Significance
of Foreign Procurement |
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Basis
of the bids for foreign procurement |
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The
Process of the Bids |
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Matters
that require attention of the participating company for the bid |
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International Business which can participate in Foreign Procurement
Projects of
DPA, KOREA are limited to MANUFACTURES and SUPPLIERS
abroad. |
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There
are two channels of Procurement: |
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A. |
FMS(Foreign Military Sales): It's complete procurement
from the U.S. |
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B. |
Commercial Procurement: Commercial Bidding |
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Interested foreign manufacturers and suppliers may participate in
the DAPA business
in article B with a format of bidding or RFQ/Negotiated Contract.
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Those foreign manufacturers and suppliers who want to take part
in DAPA commercial
bidding would be better off to make a kind of sales agency/sales representative
agreement with a local trade agent, which Korean government and DAPA
prefers for
the domestic growth of local small & medium sized companies, But
it is not obligatory
to have local agents. Discrepancies between trading countries may
vary in law system,
customs and practices as well as languages, so specialized local agency
with enough
experience would be preferable for Korean authorities. |
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Korean trading agents should be qualified as
follows to carry out the business: |
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A. |
Officially business-registered in a local tax
revenue authority (Tax payer's ID) |
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B. |
Officially registered and enrolled with AFTAK
for A-Class trading agent |
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c. |
Officiailly judged as qualified business on Security
Examination from DSC |
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And those capabilities: |
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A. |
Able to supply qualified items at a low price
in a delivery time |
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B. |
Able to be representative of foreign bidders/contractors
for DAPA's commercial bidding |
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C. |
Able to bilaterally responsible for claims and
A/S with foreign contractors |
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D. |
Ables to be in constant communication with concerned
departments of DAPA and foreign contractors |
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All international manufacturers and suppliers, as qualified above
and so in the state of
partnership with local agents, should be separately registered at
DAPA as source of
foreign supply in order to take part in DAPA business and other Foreign
Weapon
System Acquisition Projects of MND, KOREA. |
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Proposal For foreign Manufacturers
& Suppliers/
A Character Of Korean Defense Market / |
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The
Significance of Foreign Procurement |
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The Foreign Procurement undere the present generally means 'The
act of importing
goods which produce and supply in a foreign country', and the reimbursing
method is
not necessarily be foreign currency. |
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Basis
of bid for Foreign Procurement |
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1. It is sorted by the Basic Ordering Agreement(BOA) and the Firm
Ordering
Agreement, and a competative bid applies to the latter.
2. There are three systems for the procurement that called a private
contract,
a public bid and a nominative bid.
3. The department 1 of foreign procurement which is the executives
procures
the necessaries from each militaries together.
4. The contracting company should be a foreign manufacturer, a foreign
supplier
or a domestic supplier.
5. In case of an item that can not be produced at home is procured
by means of
an 'International Bid' that applis to a foreign company. |
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The
Process of the Bids |
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Business Outline |
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Operating fully competitive and transparent bids of foreign equipment
Contributing to a trustworthy procurement process and high quality
of defense articles |
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1. Plan and Estimation for Procurement
2. Invitation for Bid: IFB
3. Computation of Target Price
(Target Price = Standard Price + Fluctuating Price + Expenses of Ex-Work)
4. Bidding and Open the Bids
5. Qualified Screening |
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Overall Procurement Flow (Foreign) |
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# All the information including annual planning will be opened to
the public
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Competitive Bidding (Military Equipment)
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Negotiation (Weapon) |
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* above may refer to DPA homepage |
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Matter
that require attention of the participating company for bid (N.B)
Sorry,
this page is under construction...coming soon |
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Archives:
See the last year of bid |
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