The government is improving the national contract system to ensure a seamless transition from research and development (R&D) to product purchasing.

In addition, plans are underway to move away from rigid, prescriptive task orders in favor of setting performance goals and enhancing flexibility.

The Ministry of Economy and Finance announced these measures in the "Overhaul Plan of the National Contract System to Promote Innovative Technologies" during the Emergency Economic Headquarters Meeting and Economic Ministers' Meeting presided over by Deputy Prime Minister and Minister of Economy and Finance Koo Yun-cheol on August 28.

The government stated that it will introduce the "Three Major National Contract Innovation Tracks" to create leading demand for innovative technologies by leveraging its annual public purchasing power of 238 trillion won.

This accounts for approximately 9 percent of last year's gross domestic product.

First, a "Development-Procurement Linked Track" will be introduced to seamlessly connect R&D with purchasing.

Previously, concerns were raised that even after successfully completing development in the R&D stage, bottlenecks occurred because products had to go through separate procurement procedures all over again at the purchasing stage.

Under the new system, if a product undergoes substantial competition during the development phase, it will be deemed to have satisfied the competitive requirements under the National Contract Act during the subsequent procurement phase for the resulting deliverables.

However, specific quantities and unit prices can be finalized at the time of purchase to account for technological uncertainties.

For instance, in the case of a public supply contract for artificial intelligence robots developed by the Ministry of Trade, Industry and Energy and purchased by the National Police Agency and the National Fire Agency, the police and fire authorities can purchase the agreed-upon quantities without re-bidding once the results are derived following R&D.

A performance-goal-oriented track will also be operated.

Supplementing the existing method of finalizing specifications and details through competitive dialogue, a new "Performance-Goal-Oriented Competitive Dialogue Method" incorporating six flexibility factors will be established.

For example, if the Korea AeroSpace Administration sets a performance goal such as "providing a transport service with a launch cost of 000 million won or less and low-Earth orbit transport capacity of 00 tons or more," a contract will be awarded to the bidder that submits the best proposal through competitive dialogue among bidders.

Pilot special exceptions and a procurement sandbox will also be introduced to expand deferral pathways.

To prepare for potential demands not covered by current laws and regulations, contract exceptions will be opened up, and the official institutionalization will follow verification of effectiveness through a two-year pilot project.

(Photo: Yonhap News)