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|Subject||PPS, now authorized for procurement of general materials for military|
|Division||International Cooperation Division|
Responsibility for procurement of general materials for the military is transferred to PPS from DAPA.
The two organizations signed a MOU for the execution of consignment procurement of some of the general materials such as food and clothing for troops.
PPS signed a MOU with the Defense Acquisition Program Administration (DAPA) for transferring the authority to PPS to procure general supplies including food, clothing and aviation fuel for the military.
The MOU agreed this time stipulates key tasks regarding transferring such as the period and scope of consignment, methods to transfer and the operation of joint task force team for follow-up activities.
The MOU will go into effect as of July 1.
In fact, there has been a growing need of DAPA to hand over authority to PPS to purchase general supplies in order to enhance the expertise in the defense acquisition, given that not only war materials but general supplies for soldiers are procured by DAPA.
The supplies subject to be transferred number over 3000 worth 1.4 trillion won, including food for meal provision, clothing and jet fuels for the military.
But, the supplies that are directly related to the weapon system, require a special management for security reason or are deemed efficient to be purchased by DAPA are excluded from the list of transferring.
In order to ensure a smooth transferring of procurement authority, the two organizations agreed to organize a designated Defense Procurement Division, which will be staffed with officials both from PPS and DAPA.
Starting from July 1, the procurement decision, cost estimating and budget execution will be carried out by PPS. But, to avoid confusion of contractors, the contracts awarded before the MOU agreement are managed by DAPA.
DAPA Administrator Wang Jung-hong said in the MOU agreement ceremony that DAPA will be able to focus on innovation of defense acquisition programs to further develop the expertise of the organization by handing over authority of procurement of some general supplies to PPS.
PPS Administrator Jung Mookyung put an emphasis saying that he expects more transparent and fairer procurement of military supplies through this transferring and that PPS is going to make efforts to further stabilize supply of materials for soldiers through innovation of procurement activities.
Inquiry: Yoo Jaeseok, Senior Deputy Director of Material & Equipment Procurement Division (+82-42-724-7288)