The Procurement Agency is taking steps to alleviate the management difficulties faced by small and medium enterprises (SMEs) and ensure fair compensation in public contracts by adjusting the prices for military supplies.
On September 15, the agency announced the revision of the 'Detailed Standards for Eligibility Evaluation and Contract Performance Capability for Military Supplies,' which will take effect immediately.
This regulatory change is a follow-up measure to the '2026 Economic Growth Strategy.' It raises the minimum bid rate for all stages of military supply contracts by 2 percentage points and introduces new evaluation criteria related to industrial safety and domestic parts localization.
To reduce the financial burden on SMEs and create an environment for fair public procurement, the minimum bid rate for all stages of military supply eligibility evaluations will be uniformly increased by 2 percentage points. Specifically, for bids below the announced price, the rate will rise from 84.245% to 86.245%, while for bids at or above the announced price, it will increase from 82.995% to 84.995%. The minimum rate for military supply contract performance capability evaluations will also be raised from 87.995% to 89.995%.
New criteria for industrial safety evaluations will be established. To enhance on-site safety management awareness and prevent major accidents, companies that have experienced significant accidents will incur a penalty of -3 points, while those with KOSHA-MS certification will receive a bonus of +1 point.
Additionally, measures have been put in place to encourage the use of domestically produced key components. A new bonus of +1 point will be awarded to SMEs that achieve parts localization, which will be prioritized in military supply contract performance capability evaluations. The evaluation of companies with excellent employment stability will also be enhanced to prevent adverse effects from artificially reducing total employment numbers and to contribute to genuine job security.
Procurement Agency Deputy Director Kang Seong-min stated, "This revision of the military supply procurement system is designed to ensure that manufacturing and supplying SMEs receive fair compensation for their efforts and to actively support national objectives such as worker safety and the localization of key technologies. We will continue to listen to the voices from the field to assist in corporate innovation and foster a trusted military supply procurement ecosystem."
* This article has been translated by AI.
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