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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.

    Significance of Foreign Procurement
    Basis of the bids for foreign procurement
    The Process of the Bids
    Matters that require attention of the participating company for the bid
   
 

International Business which can participate in Foreign Procurement Projects of
DPA, KOREA are limited to MANUFACTURES and SUPPLIERS abroad.

   
 There are two channels of Procurement:
 
  A. FMS(Foreign Military Sales): It's complete procurement from the U.S.
  B. Commercial Procurement: Commercial Bidding
   
  Interested foreign manufacturers and suppliers may participate in the DAPA business
in article B with a format of bidding or RFQ/Negotiated Contract.
  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.
   
  Korean trading agents should be qualified as follows to carry out the business:
 
  A. Officially business-registered in a local tax revenue authority (Tax payer's ID)
  B. Officially registered and enrolled with AFTAK for A-Class trading agent
  c. Officiailly judged as qualified business on Security Examination from DSC
  And those capabilities:
 
  A. Able to supply qualified items at a low price in a delivery time
  B. Able to be representative of foreign bidders/contractors for DAPA's commercial bidding
  C. Able to bilaterally responsible for claims and A/S with foreign contractors
  D. Ables to be in constant communication with concerned departments of DAPA and foreign contractors
  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.
  Proposal For foreign Manufacturers & Suppliers/
A Character Of Korean Defense Market / 

 
 
  The Significance of Foreign Procurement
  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.
 
 
   Basis of bid for Foreign Procurement
   
  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.
 
  The Process of the Bids
   
  Business Outline
  Operating fully competitive and transparent bids of foreign equipment
Contributing to a trustworthy procurement process and high quality of defense articles
  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
   
  Overall Procurement Flow (Foreign)
   
 
   
  # All the information including annual planning will be opened to the public
   Competitive Bidding (Military Equipment)
   
 
   
Negotiation (Weapon)
   
 
   
  * above may refer to DPA homepage
 
  Matter that require attention of the participating company for bid (N.B)

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  Archives: See the last year of bid
   
   
   
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