This study analyzes Entry Barriers in relation to the procurement of Force Support System among War supplies and empirically analyzed whether Entry Barriers affect corporate bidding and performance of contract obtainment through the survey of corporat...
This study analyzes Entry Barriers in relation to the procurement of Force Support System among War supplies and empirically analyzed whether Entry Barriers affect corporate bidding and performance of contract obtainment through the survey of corporations participating in Force Support System.
First, after reviewing the properties of procurement in Force Support System, the result of analysis of 13 entry barrier factors in 3 areas appearing in Force Support System market in terms of Law amd System aspect show Quality area(War Supplies Standardization, Detailed Proposal Request, Prohibition of specifying specific trademarks and specifications, contract performance capability inspection), Cost area(Cost calculation and application, discrepancy process, Application of Contract Method by Negotiation, Pre-approval of subcontracting), and Procure Environment area(Exclusive Transaction Contract, Limitation of participation of major corporation, Priority purchase of domestic produced items, allowance for private contracts, joint ownership of intellectual property rights).
Next, as a result of empirical analysis on whether entry barrier factors affect the bidding and order performance of corporations, it was confirmed that among the entry barrier factors, war supplies standardization, contract performance capability inspection, limitation of major corporation participation, and joint ownership of intellectual property rights affect the bidding and order performance.
In addition, from the perspective of corporation participating in the Force Support System Market, it also proposed measures to develop law and regulations to resolve entry barriers in the market and create sound and transparent competition requirement. Factors tahat require update of laws and regulations were identified as Defense Standards, Cost Calculation and Application items. Among the laws, the distribution of delivery performance and technical capabilities, priority purchase domestically produced items, patent and intellectual property rights, exclusive transactions, and contracts were identified as factors require to be eased. In regards to the detailed requirements of the proposal request and discrepancy processing it was required to cultivate the expertise of logistic officials related to the procurement in Force Support System. Also, considering the properties of completeness and stability of war supplies, it was identified as Prohibition of specifying specific trademarks and specifications, Limitation major corporation participation, Pre-approval of subcontracting, and application of private contracts and more as factors to which the principle of minimum limit should be applied. It is believed that applying the requirements for these factors will lower the threshold of entry barriers, making it easier for number of capable corporations to enter the market.
If improvement measures are taken for Force Support System procurement policy based on the factors of Entry Barriers identified in this study, active participation of potential corporation into the market and preparation of measures for healthy competition is to be expected.