• KDI Journal of Economic Policy
• /
• v.32 no.2
• /
• pp.144-170
• /
• 2010

This paper considers the effect of various types of procurement auction system on competition focusing on the rate of successful bidding. We analyze the number of bidders and the rate of successful bids using online procurement data of the Public Procurement Service. The average number of bidders is 301 and the average rate of successful bids is 87.42% while the weighted average rate is 75.13%. These numbers show that there is quite strong competition among bidders and the rate is lower as the expected price is higher. When we analyze the data of price procurement auction, the rate is also shown to be lower as the expected price is higher. Furthermore, the rate decreases as the number of bidders increases which naturally makes the competition stronger. Meanwhile, the analysis finds that the inclusion of the onsite bidding, the PQ(Pre-Qualification) result, or major-10 winning companies cannot explain the rate much in our data. In case of turnkey-alternative, the average rate of successful bidding for 484 cases record 90.20%. The average is 84.89% with 120 alternatives and 91.97% with 364 cases of turnkey. The reason why the rate of turnkey-alternative is lower than that of price procurement auction is the lack of competition as well as the systematic difference. By setting up a model, we are able to explain the difference in rate caused by the respective reason. When we suppose there are 3 bidders in case of price procurement auction for a project that exceeds 100 billion won, the rate is expected to be around 64%. This implies that difference of 26% is caused by the systemic difference and 3% by the lack of competition. Therefore, we conclude that the difference in rate between turnkey-alternative and price procurement auction is caused mainly by the systemic difference. In case of PPP(Public Private Partnership) projects, among 154 projects in total, only 40% has more than 2 bidders that compete. The average number of bidders is 1.88 which is less than 2, and the average rate of successful bids is 90%. In sum, under the price procurement auction, there is strong competition which is reflected by the rate of successful bids. However, there is room to decrease the rate by strengthening the competition under the turnkey-alternative. Also with PPP projects, we expect the rate can be steadily reduced with revived competition among bidders.

• The Journal of Society for e-Business Studies
• /
• v.24 no.3
• /
• pp.111-128
• /
• 2019

In the current procurement system in Korean military, the army, navy and air force have their own distributors, military branches and warehouses. However, especially, it has been hard to have the economy of scale because most of suppliers have shipped their order from the suppliers to each of Korean military directly. Koran military considers the transportation cost as one of the management cost factors among various kinds of cost. Furthermore they have contracted with the suppliers in annual and collectively on the transportation. Hence they have been in trouble with getting efficiency of Defense budget execution because it is hard to make a decision of Defense budget with real transportation cost. Moreover Korean army, navy and air force have their own supply chain separately, so they can not cooperate flexible and quickly when they need. Therefore, in this research, we provide a benchmarking of DTCI (Defense Transportation Coordination Initiative) which has been proved that it has improved the procurement system in US implementing the integrated transportation system with 3PL and military. In addition we propose advanced integrated shipping model using Hub & Spoke system for Korean military. In order to prove its effect, we simulate our model based on the real data of the suppliers' delivery to compare with the current system when it comes to how much we can save the cost. Our research can provide evidence that the integrated procurement system in Korean military will improve Korean military procurement system.

• International conference on construction engineering and project management
• /
• 2017.10a
• /
• pp.153-158
• /
• 2017

Procurement system of public construction projects in Japan is changing with diversity in rapid pace. The quality assurance and risk management of construction projects should be more certain as the projects are turning into larger scale and more complexed. The clients in the public sector will want to make the relation of responsibility among the client, the designer (architects and engineers), and contractor clearer in terms of role and risk. Public-Private Partnership (PPP) is one of the methods for collaboration of the public sector and the private sector in public construction projects where the public utilizes the ability and suggestion of the private. Private Finance Initiative (PFI), Design-Build-Operate (DBO), market testing, designated manager system, outsourcing of tasks in local governments are well-known as examples of PPP in Japan. Indeed, there is an obvious trend that Design-Build (DB) is adopted in public construction projects in many countries including Japan. In this paper, the public construction projects in various procurement systems are surveyed and analyzed. They are not limited within the traditional procurement, Design-bid-Build, a separate order system of design and construction. Design-Build or PFI are adopted. In particular, contract by wide range including maintenance of equipment can be found. On the other hand, modification from originally typical PFI is taking place, such as concept design and project finance are removed from the roles and the tasks of the special purpose company (SPC) in PFI. Standard roles and tasks in a construction project are modeled in this paper.

• Land and Housing Review
• /
• v.4 no.4
• /
• pp.425-434
• /
• 2013

The Small and Medium Business Administration specified 123 construction materials mandatory to purchase directly and forced the public owners to provide the contractors with materials as required by related law. This study extensively reviewed various characteristics and management factors of the owner-providing materials consumed in the public apartment housing under Direct Buying System(DBS) from the public owner's perspective. Subsequently, the major managed materials were identified, and the proper response plan was developed along the material procurement process. The Procurement Management Load Indices (PMLI) of 43 materials were evaluated according to rating criteria with procurement path, project-specified level, user requirement level, supplier's responsibility, on-site work requirement, additional parts, and inspection standards. The tile and aluminum windows were classified in the group needing high-level procurement efforts to reduce the errors and ensure the efficiency. The accurate quantity estimation method, definite purchase details, management activity definition before and after production, additional quantity for rework, interference coordination were defined as the essential activities for effectively responding to DBS.

• Journal of the Korea Safety Management & Science
• /
• v.5 no.2
• /
• pp.155-164
• /
• 2003

In this regard, the newly focused logistics information system makes reducing the expenses of whole logistic available by cutting down the expenses of materials, transportation and stock and also, it allows the company to cut down the procurement expense through the reduced lead-time and rationalize producing plans by eliminating the uncertain orders and fluctuation in procurement. It further more optimizes the efficiency of over all productions by meeting the dead line for delivery to the customers. In the recent environment of globalization where fierce competitions exist between manufacturers, logistics plays important role in the strategies of companies, and managements of companies try their best efforts in establishing the strategy to accomplish the innovative relationship between supply chain channels. Therefore, in this study, we try to suggest the model of consolidated logistics system that is integrated logistics information system with suggesting the better way of logistics and comparative analysis with logistics system to resolve the difficulties numbers of companies face after realizing what logistics information system is in Korea.

• Journal of the military operations research society of Korea
• /
• v.37 no.1
• /
• pp.1-9
• /
• 2011

The contractor management is one of the important factors for the modem defense acquisition program. The occurrence of unlawful company causes the reason in which defense acquisition program is unable to be reasonably fulfilled and setback to the deployment of defense weapon system. In this paper, we propose the Artificial Neural Network to develop a prediction model for the discrimination of unlawful company in defense procurement. The data which are used in analysis, are obtained targeting domestic small & medium manufacture enterprises. It is expected that our model can be used to improve the program management capability for defense acquisition and contribute to the establishment of efficient procurement procedure through entry of the reliable domestic manufacturer.

• Convergence Security Journal
• /
• v.13 no.2
• /
• pp.143-153
• /
• 2013

The objective of this study is to present improvement of Weapon System T&E(Test and Evaluation) correspond to future environment by analyzing restrictions such as change of future weapon system procurement environment, and present T&E management system, organization and resource etc. The results of this study will be aid of produ ction dicision making by timely risk management through early identification of deficiency on the process of weapon system development, and suitability of combat determination.

• Proceedings of the Safety Management and Science Conference
• /
• 2003.11a
• /
• pp.93-96
• /
• 2003

In this regard, the newly focused logistics information system makes reducing the expenses of whole logistic available by cutting down the expenses of materials, transportation and stock and also, it allows the company to cut down the procurement expense through the reduced lead-time and rationalize producing plans by eliminating the uncertain orders and fluctuation in procurement. It further more optimizes the efficiency of over all productions by meeting the dead line for delivery to the customers. In the recent environment of globalization where fierce competitions exist between manufacturers, logistics plays important role in the strategies of companies, and managements of companies try their best efforts in establishing the strategy to accomplish the innovative relationship between supply chain channels. Therefore, in this study, we try to suggest the model of consolidated logistics system that is integrated logistics information system with suggesting the better way of logistics and comparative analysis with logistics system to resolve the difficulties numbers of companies face after realizing what logistics information system is in Korea.

• Journal of the Korean Society of Systems Engineering
• /
• v.7 no.2
• /
• pp.21-30
• /
• 2011

The contractor management for the effective defense project is essential factor in the modern defense acquisition project. The occurrence of Improper Businessman causes the reason in which defense acquisition project is unable to be reasonably fulfilled and setback to the deployment of defense weapon system. In this paper, we develop a prediction model for the effective defense project by using the Discriminant Analysis, the Logistic Regression & Artificial Neural Network and analyse the core variables that determine the Improper Businessman in many variables. It is expected that our model can be used to improve the project management capability of defense acquisition and contribute to the establishment of efficient procurement procedure through entry of the reliable domestic manufacturer.

• Journal of the Korea Institute of Military Science and Technology
• /
• v.14 no.3
• /
• pp.467-473
• /
• 2011

The contractor management for the effective defense project is essential factor in the modern defense acquisition task. The occurrence of unlawful company causes hastiness for project manager and setback to the deployment of defense weapon system. In this paper, we develop a prediction model for the effective defense project by using the discriminant analysis and analyse the variables that discriminate the unlawful company in many variables. It is expected that our model can be used to improve the project management capability of defense acquisition and contribute to the establishment of efficient procurement procedure through entry of the reliable defense manufacturer.