2024.07.17. The Fair Economy — In contracts to which the state is a party, multiple winners may be determined for a single contract when necessary. Those who have received corrective measures or reduction or exemption of fines through voluntary reporting of unfair collaborative acts may have restrictions on bidding eligibility reduced or exempted.
The Ministry of Economy and Finance announced on the 16th a draft partial amendment to the Enforcement Decree of the Act on Contracts with the State as a Party (State Contract Act) containing these provisions.
The Ministry of Economy and Finance explained that the amendment aims to support the achievement of contract objectives by allowing two or more bidders to be selected as successful bidders for a single contract when necessary, considering the purpose of the contract. It also seeks to encourage voluntary reporting by allowing the restriction on bidding eligibility to be reduced or exempted if corrective measures or surcharges are reduced or exempted through voluntary reporting of an unfair joint action under Article 44 of the Monopoly Regulation and Fair Trade Act (Fair Trade Act).
Looking at the main revisions, it allows the determination of multiple winners (proposed Article 47-3).
This is a follow-up measure to the amended State Contracts Act, which took effect on September 27, allowing multiple winners to be determined for a single contract, and stipulates the cases in which multiple winners can be determined. Multiple winners may be determined when necessary in cases such as ▲maintenance of goods or facility upkeep and repair ▲evaluation and appraisal ▲preparation for contract non-performance situations.
The Ministry of Economy and Finance expects that by allowing the selection of multiple successful bidders in a single contract when necessary, considering the purpose of the contract, the amendment will support efficient contract procedures and the achievement of contract objectives.
When fines under the Fair Trade Act are reduced or exempted through voluntary reporting, the restriction on bidding eligibility under the State Contracts Act will be reduced or exempted (proposed Article 76, Paragraph 15).
This is a follow-up measure stipulating the specific scope of reduction or exemption in such cases, following the amended State Contracts Act, which took effect on September 27, allowing reduction or exemption of bidding restrictions under the State Contracts Act when corrective measures or fines are reduced or exempted through voluntary reporting under the Fair Trade Act.
The Ministry of Economy and Finance believes that by allowing bidders to receive a reduction or exemption from the restriction on bidding eligibility under the State Contract Act when they voluntarily report bid-rigging, it can encourage voluntary reporting.
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