• Title/Summary/Keyword: government procurement

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Analysis of the Firm Support Effects of the Innovation Procurement Policy Using Propensity Score Matching and Difference in Differences (성향점수매칭(PSM)-이중차분(DID) 결합모형을 이용한 혁신조달 정책의 기업지원 효과 분석)

  • Juwon Kim;Wonik Park
    • Journal of Technology Innovation
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    • v.31 no.3
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    • pp.201-230
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    • 2023
  • The Innovation Procurement Policy was introduced as part of the strategic public procurement policy to improve firms' innovation capabilities and enhance the public sector's ability to solve social problems by designating and purchasing so-called 'innovative products.' The pilot procurement project for innovative products was first introduced in 2019, and the policy system for designating and discovering innovative products by government departments, as well as the priority purchase system, was established in 2020. Hence, this study conducted a quantitative analysis focusing on the effectiveness of the innovation procurement system in supporting firms after it was fully implemented. For this purpose, corporate financial and employment data from 2017 to 2021 were used, and propensity score matching(PSM) and difference-in-difference(DID) methods were utilized as analytical tools. The study found that the innovation procurement system contributed to corporate growth and employment and created additional public and private sales channels. Moreover, it is necessary to enhance the innovation procurement system, such as matching innovative product-producing companies with existing SME support policies, for companies to become self-sustaining after the innovative product designation ends.

A Study on the Performance Evaluation of G2B Procurement Process Innovation by Using MAS: Korea G2B KONEPS Case (멀티에이전트시스템(MAS)을 이용한 G2B 조달 프로세스 혁신의 효과평가에 관한 연구 : 나라장터 G2B사례)

  • Seo, Won-Jun;Lee, Dae-Cheor;Lim, Gyoo-Gun
    • Journal of Intelligence and Information Systems
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    • v.18 no.2
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    • pp.157-175
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    • 2012
  • It is difficult to evaluate the performance of process innovation of e-procurement which has large scale and complex processes. The existing evaluation methods for measuring the effects of process innovation have been mainly done with statistically quantitative methods by analyzing operational data or with qualitative methods by conducting surveys and interviews. However, these methods have some limitations to evaluate the effects because the performance evaluation of e-procurement process innovation should consider the interactions among participants who are active either directly or indirectly through the processes. This study considers the e-procurement process as a complex system and develops a simulation model based on MAS(Multi-Agent System) to evaluate the effects of e-procurement process innovation. Multi-agent based simulation allows observing interaction patterns of objects in virtual world through relationship among objects and their behavioral mechanism. Agent-based simulation is suitable especially for complex business problems. In this study, we used Netlogo Version 4.1.3 as a MAS simulation tool which was developed in Northwestern University. To do this, we developed a interaction model of agents in MAS environment. We defined process agents and task agents, and assigned their behavioral characteristics. The developed simulation model was applied to G2B system (KONEPS: Korea ON-line E-Procurement System) of Public Procurement Service (PPS) in Korea and used to evaluate the innovation effects of the G2B system. KONEPS is a successfully established e-procurement system started in the year 2002. KONEPS is a representative e-Procurement system which integrates characteristics of e-commerce into government for business procurement activities. KONEPS deserves the international recognition considering the annual transaction volume of 56 billion dollars, daily exchanges of electronic documents, users consisted of 121,000 suppliers and 37,000 public organizations, and the 4.5 billion dollars of cost saving. For the simulation, we analyzed the e-procurement of process of KONEPS into eight sub processes such as 'process 1: search products and acquisition of proposal', 'process 2 : review the methods of contracts and item features', 'process 3 : a notice of bid', 'process 4 : registration and confirmation of qualification', 'process 5 : bidding', 'process 6 : a screening test', 'process 7 : contracts', and 'process 8 : invoice and payment'. For the parameter settings of the agents behavior, we collected some data from the transactional database of PPS and some information by conducting a survey. The used data for the simulation are 'participants (government organizations, local government organizations and public institutions)', 'the number of bidding per year', 'the number of total contracts', 'the number of shopping mall transactions', 'the rate of contracts between bidding and shopping mall', 'the successful bidding ratio', and the estimated time for each process. The comparison was done for the difference of time consumption between 'before the innovation (As-was)' and 'after the innovation (As-is).' The results showed that there were productivity improvements in every eight sub processes. The decrease ratio of 'average number of task processing' was 92.7% and the decrease ratio of 'average time of task processing' was 95.4% in entire processes when we use G2B system comparing to the conventional method. Also, this study found that the process innovation effect will be enhanced if the task process related to the 'contract' can be improved. This study shows the usability and possibility of using MAS in process innovation evaluation and its modeling.

A Study on Effective Utilization of Historical Data of Software Companies (소프트웨어사업자 실적데이터 활용방안에 관한 연구)

  • Kim, Joong-Han
    • Journal of Information Technology Services
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    • v.7 no.1
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    • pp.103-116
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    • 2008
  • Efficiency and objectiveness are the most critical issues in the evaluation of software projects. It is beneficial not only to software companies participated in bids, but to administrators of projects. This study attempts to find an improvement in the evaluation process by connecting the historical data of bidding companies in the software company report system with the governmental procurement system. The proposed means will eliminate unnecessary and repetitive submission step of bidding companies and provide the administrator with objective evaluation process. Also, this paper proposes an automated process for quantifying the business experience of bidding companies.

A Mechanism to Derive Optimal Contractor-type & Action Comginations of a Single-source Procurement Contract

  • 정승호
    • Journal of the Korean Operations Research and Management Science Society
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    • v.24 no.2
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    • pp.41-51
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    • 1999
  • In sole-source procurement contraction for government goods and services, the buyer (government) needs to derive the optimal actions from the contractor so the buyer can obtain the maximum utility and the contractor, or single-source supplier, is guaranteed the equivalent of a minimum level of profit. Under the assumption of risk-neutrality for both the buyer and the contractor and the buyer's unobservability of the contractor's action, it is necessary for the buyer to design a (mathematical) model to achieve the above objective. This paper considers the mathematical formulation in which two problems - moral hazard and adverse selection - are present simultaneously; furthermore, from the formulation, a GAMS (General Algebraic Modeling System) program is used for a possible buyer to obtain the optimal actions.

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MEDIATION MECHANISM FOR CONSTRUCTION DISPUTE RESOLUTION IN TAIWAN

  • Chun-Yi Hwang;Nie-Jia Yau
    • International conference on construction engineering and project management
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    • 2011.02a
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    • pp.357-363
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    • 2011
  • Mediation has long been praised as one of effective dispute resolution methods in the area of construction law. Article 85-1 of the Taiwan Government Procurement Act was amended and promulgated by presidential decree on July 4, 2007. The second paragraph of the Article elaborates explicitly, "In the event that the application for mediation referred to in the preceding paragraph is made by the supplier, the agency may not object to such application." Beyond that, if an unsuccessful mediation of a construction dispute is due to the agency's disagreeing with the proposal or resolution for mediation proposed by the Complaint Review Board for Government Procurement ("CRBGP"), the agency may not object to the arbitration filed by the supplier. It undoubtedly reinforces the importance of the mediation-arbitration procedure. Accordingly, this paper elaborates on the mediation mechanism in Taiwan in the framework of construction disputes first. After that, dispute resolution of a local public work case is provided to demonstrate the practice of construction mediation in Taiwan. Lastly, this study proposes suggestions on applying mediation to ease similar subsequent cases.

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A Study for the Application and the Buyer's Remedy for the United Nations Convention on Contract of the International Sales of Goods to the Government Foreign Procurement Contract (정부 외자조달계약의 국제물품매매협약의 적용과 매수인의 구제에 관한 연구)

  • Lee, Dong Wook
    • THE INTERNATIONAL COMMERCE & LAW REVIEW
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    • v.62
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    • pp.55-86
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    • 2014
  • Korea has become a member of the United Nations Convention on Contract of the International Sales of Goods (the 'CISG') effective since March 1, 2005. As, therefore, the governing law of the general terms and conditions (the 'GTC') in the Government Foreign Procurement Contract (the 'Contract') is mandatorily fixed to the Korean Law, the CISG, as an International Convention, now having an equivalent or even higher status to the Korean Law, unless expressly excluded, will be priorly applied to the Contract where a transaction occurs between its members. In this regard, this study focuses on how to find the way for the CISG to be a governing law of the GTC in order to eliminate legal uncertainties and lacks of foreseeability prevailed in the international trade. For that purpose, the legal aspects of GTC, and the Buyer's remedy for the Seller's breach of the Contract are analyzed in accordance with the comparative study between the CISG and the GTC including the relevant case studies. As a result of this study, the application of the CISG into the GTC is highly recommended in order to reflect into the Contract such features as fairly harmonized for the interest of both parties. Taking this opportunity, a GTC, amended from the existing one, or newly formed, within the perimeter of not conflicting with the provisions of the CISG, including but not limited to the Civil Law and Commercial Law, is required in order to evenly share each party's responsibilities and obligations where the breach or remedy of the Contract is, and, thus, which will ultimately contribute to an efficient conduct of the Contract.

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Innovative Mechanisms in the Procurement Logistics of Kazakhstan

  • Zhatkanbaev, Erzhan B.;Mukhtar, Ernur S.;Suyunchaliyeva, Maiya M.
    • The Journal of Asian Finance, Economics and Business
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    • v.2 no.3
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    • pp.33-36
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    • 2015
  • Innovations in the procurement logistics now is very popular in Kazakhstan. Nowadays there are a lot of documents of transport infrastructure and Kazakhstan logistic system is developing more and more. Procurement logistic is the direction where you can count, sometimes you can buy some products or transport equipments. Logistic in Kazakhstan is new direction, there are a lot of young people who choose this specialty and will stay demanded. Our president said a lot of words in strategies about development in logistics and so there will be new methods that will be used here. Innovations are new technologies that are used in different spheres so this structure as procurement logistic will develop in Kazakhstan and every citizen of our republic will support it. Transport systems are used for transitions different products so there are a lot new transition roads for example Western China - Western Europe; Astana-Almaty; Astana-Ust-Kamenogorsk; Astana-Aktobe, Atyrau; Almaty - Ust-Kamenogorsk; Karaganda - Zhezkazgan - Kyzylorda; Atyrau-Astrakhan, it helps Kazakhstan to support international links between other countries.

A Case of Evaluation of the G2B System by Analysing Operational DB Data (DB운영 데이터 분석을 통한 G2B 시스템 평가 사례)

  • Lim, Gyoo-Gun;Lee, Dae-Chul
    • Journal of Information Technology Services
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    • v.11 no.2
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    • pp.243-258
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    • 2012
  • The G2B system is one of the important information systems in the e-government implementation. It is difficult to measure the cost reduction effect of the system introduction because there are many participants in the complex procurement processes. Previous approaches of the performance evaluation of such processes have been based on conducting some surveys and interviews with statistical methods. Therefore there have been some limitations in the verification of feasibility. Therefore this study tries to suggest a case of performance evaluation about the cost reduction in using of the G2B system by analyzing operational DB data from the G2B system. This study analyzed the procurement processes of G2B system according to 'goods' and 'facilities/services' and classified the procurement processes into 12 sub-processes. By developing an evaluation model for the cost reduction of e-procurement, we derived the whole cost reduction effect was 8,000 billon Won for the use of Korea KONEPS G2B system in 2008. Specially the cost reduction in the private sector was 6,600 billion Won. It was mainly due to the decrease of the offline visits to the related organizations to participate a bidding process. Moreover, the cost reduction of using shopping mall was 1,000 billion Won among the total 1,400 billion Won in the whole public sector. The main contribution of this paper is to show the more objective evaluation result of the use of e-procurement, which verifies the necessity of G2B system.

A study on the Activation Plan Using public purchase system of the Disability Firm manufactured product (장애인기업 생산제품의 공공구매제도를 통한 활성화 방안에 관한 연구)

  • Song, Soo-Jeong;Won, Joon-Ho
    • Journal of the Korea Safety Management & Science
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    • v.12 no.3
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    • pp.145-151
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    • 2010
  • The research which sees the disability firm led and public procurement market penetration the base will be able to grow prepared and with the petal of the disability firm for a support disability firm manufactured product public purchase activation plan of the government offices groped. disability firm manufactured products purchase promotion plan and policy of the government offices presents the fact that with the aim.