An overview of Korea Western Power's procurement procedure
Korea Western Power's standard procurement procedure is classified into competitive and noncompetitive contracts. A competitive contract procedure contains open tendering and selected tendering and contract by negotiation. A noncompetitive contract procurement contains a sole source procurement contract. We principally use open tendering in procurement of equipment or services, and use selected tendering if there is any reason that a competitive contract cannot be applied.
Competitive Contract
In sealed bidding, the process is fair and straightforward. The bid is publicly opened and the winner shall be declared immediately based on the result of the bid evaluation. Korea Western Power shall verify that the winner is representative of a responsible organization and has complied with all elements of the ITB.
Noncompetitive Contract
The noncompetitive procurement procedure is restrictively used to maintain our basic principles of openness and fairness. We use this procedure in the following cases:
- absence of tenderers in response to a competitive contract procedure
- reasons connected with protection of exclusive rights such as patents or copyrights
- absence of competition for technical reasons
- extreme urgency that the product or service will not be obtained in time by means of open tender
- procedures
The category of porcurement ruled by international solicitation under agreement on government porcurement.
Procurements Proceduer
Domestic solicitation domestic
Procurement
Planning
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Open Tendering
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Publiczing Procurement
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Selective Tendering
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QBL
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YSelection
Potential
Tender -
NPublcizing
ProcuremnetApplication
for TenderingPre-
Quailification
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Invititation to Bid
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Bid Submission
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2-Stage Tendering
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YSpecifition
EvaluationPrice
Evaluation &
Negotiation -
NPrice
Evalution &
Negotiation
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-
Awarding the Contract
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Contracting by Negotiation
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Publiczing Procurement
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Release Of Infomation
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Evaluation & Negotiation
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Request Best & Final Offer
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Sole Source Acquistion
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Request For Proposal
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Evaluation & Negotiation
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Signing the contract
International solicitation
Procurement
Planning
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Open Tendering
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Publiczing Procurement
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Release Of Infomation
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-
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Selective Tendering
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QBL
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YSelection
Potential
Tender -
NResearch
Potential
SupplierPre-
Quailification
-
-
Invititation to Bid
-
-
-
Sole Source Acquistion
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Request For Proposal
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Evaluation & Negotiation
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-
-
Bid Submission
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2-Stage Tendering
-
YSelection
Potential
TenderPrice
Evaluation &
Negotiation -
NPrice
Evaluation &
Negotiation
-
-
Awarding the Contract
-
-
Signing the contract
Competitive Contract
Public Notice of Procurement
Korea Western Power will announce the bid about 40 days in advance on a bulletin board Korea Western PowerHome-Page(www.iwest.co.kr/eng/) and/or in daily newspapers written in Korean and English.
Distribution of Invitation to Bid (ITB)
Korea Western Power will distribute ITB at no charge, to whomever desires to participate in the bid, except forparticular cases. The period ITB distribution will be 15 to 20 days from the date of the bid announcement, which willbe designated in advance.
Submission of Bid
After reviewing the specifications of ITB, suppliers will submit their proposals, which are prepared on the basis of ourITB via courier and/or registered mail. Proposals should be registered at the designated place before the bid due date.
Evaluation of Proposals
Korea Western Power will evaluate the proposals to determine whether they meet the requirements, such asspecifications, delivery, trade terms, payment terms, guarantee and other general conditions prescribed in ITB.The proposals which differ from Korea Western Power's specifications and/or conditions will be requested to beconfirmed or supplemented.
Selection of Negotiable Bidder
The Bidder who submits the lowest offer following evaluation of the qualified bidders will be selected as the firstnegotiable bidder.
Negotiation
The organization selected as the negotiable bidder will be contacted to start negotiations, which will normally dealwith any outstanding issues. A contract will be awarded after an agreement has been reached.
Awarding and Signing the Contract
As a rule, the purchase contract will be in writing. The contract, in principal, will be in accordance with the termsprescribed by Korea Western Power's ITB. As necessary, however, the contract may be drafted on mutually agreeableterms between Korea Western Power and the successful bidder.
Delivery, Inspection, and Payment
Products are subject to inspection upon delivery and payment is usually made on a L/C basis.When necessary, such as a long lead time required to manufacture a product, Korea Western Power will make specialarrangements for payment in the form of a scheduled payment, etc.
Noncompetitive Contract
Selection of Prospective Supplier
Korea Western Power fairly selects prospective suppliers for noncompetitive contracts. A company which presents itsprofile and product will be considered as a prospective supplier.
Request for Quotation
The nominated supplier will be requested to submit a quotation in accordance with Korea Western Power's Requestfor Quotation (RFQ) by courier, registered mail and/or fax. RFQ will enclose the materials list, technical specificationsand Korea Western Power's General Terms and Conditions.
Submission of Quotation
The nominated suppliers will submit the quotation, to be written on the basis of Korea Western Power's RFQ, viacourier, hand delivery, and/or registered mail. The proposal should be a firm offer for the contract.
Evaluation of Quotation
Korea Western Power will conduct and evaluate the quotation. The quotation will be deemed valid only if it meetsgeneral and special conditions. Deviations from technical specifications and other general conditions of Korea WesternPower will be negotiated before the contract is awarded.
Purchase Order
Upon deciding the contract award, Korea Western Power will issue the Purchase Order, or have it signed by anauthorized representative.