Aerospace Firms' Products Set to Qualify for Public Institutions' Negotiated Contracts

KASA to Fully Launch Innovative Product Designation Program for the Aerospace Sector
Negotiated Contracts Permitted for Up to Six Years; First Applications Accepted Through Nov. 20

Government agencies and public institutions will be able to purchase outstanding technology products developed by domestic aerospace companies through negotiated contracts. The government is supporting companies through public procurement, taking into account the aerospace industry's need to overcome a shortage of early demand.

The Korea Aerospace Administration (KASA) announced that it will begin fully operating its designation system for innovative products in the aerospace sector and accept applications for the first round from Oct. 23 through Nov. 20.

View of the Korea Aerospace Administration headquarters. Photo provided by KASA.

The innovative product designation system gives products recognized for their public value and innovativeness an opportunity to enter the public procurement market. Designated products are registered on the Public Procurement Service's Innovative Marketplace and may be purchased through negotiated contracts by national and local governments and public institutions for three years from the designation date. The designation period may be extended for up to six years.

Products selected for the Public Procurement Service's pilot purchase program for innovative products also have the opportunity to be used by public institutions and have their performance tested. Aerospace products require substantial development costs and long lead times, but companies in the sector have struggled to enter the market because the number of early customers is limited.

Eligible products include those commercializing technologies from research and development projects overseen by KASA that were completed within the past five years, as well as products using technologies designated as new aerospace technologies. The first innovative products are expected to be designated in the first quarter of next year, following document evaluations and a review of procurement suitability. The designation process will then take place twice a year, in the first and second halves.

Applications must be submitted by email to the Korea Aerospace Industries Association by Nov. 20.

Tae seog Oh, head of KASA, said, "We will actively support companies' market entry and overseas exports by creating early demand in coordination with the government's public procurement and demonstration programs."

This content was produced with the assistance of AI translation services.