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Government Allows Direct Contracts for Digital Services... Expansion of Current Policy for Innovative Products

Deliberation and Resolution at the 48th Cabinet Meeting on the 22nd

[Sejong=Asia Economy Reporter Kim Hyunjung] The government will allow direct contracts without monetary limits for certain digital services and will expand the scope for innovative products beyond the current regulations.


The government announced on the 22nd that it reviewed and approved the "Partial Amendment to the Enforcement Decree of the National Contract Act" at the 48th Cabinet meeting held in the morning.


First, to promote the use of digital services in the public sector, the government will allow unrestricted direct contracts for digital services selected by the Digital Service Review Committee. Accordingly, without the processes of bid announcement, bidding, winner selection, and contract signing, agencies can search for necessary services among the selected services, agree on contract terms, and conclude direct contracts.


The government expects that through this, demand agencies will be able to contract the digital services they need quickly and conveniently under desired conditions, thereby activating the public use of excellent private digital services.


Along with this, to strengthen the role of leading purchasers in public procurement innovation, the government will expand the range of innovative products eligible for direct contracts beyond the current scope by establishing Fast Track III. Additionally, to promote the purchase of innovative products, restrictions associated with direct contracts will be significantly reduced, such as allowing a single estimate even when two or more estimates are required. The government anticipates that public procurement of innovative products with high innovation and public value in various fields such as safety, environment, welfare, education, and culture will be promoted accordingly.


The amendments will take effect from the 1st of next month, and the government plans to implement follow-up measures such as the selection of digital services (Ministry of Science and ICT Digital Service Review Committee) and designation of innovative products (Ministry of Economy and Finance Procurement Policy Deliberation Committee).


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