Discussion of '3 cases' between public institutions and large corporations
For projects with more than 50% of the private burden
As early as the first half of next year, 'first fruit'
The 'Private investment-type SW Project' to increase opportunities for large corporations to participate in the public software (SW) sector took the first step. The first results are expected within next year. According to the Ministry of Science and ICT, three private investment software projects (hereinafter referred to as private-invested SW projects) are being discussed between public institutions and large information technology (IT) service companies.
The target of the ‘Private-invested SW projects' is a SW development project in which the proportion of the private sector is more than 50% of the total project cost. It was introduced at the end of last year through the improvement of the system to restrict participation by large corporations (Track 3). The expected effect is to secure insufficient budget for public institutions to improve services to the public, and to increase opportunities for large corporations to participate in public projects.
As this is the first case, it is known that the project being discussed is not large in scale as it is a pilot project. After the discussion is over, a deliberation will be held on whether it is possible to participate in large corporations as a ‘private-invested SW project'. It is expected that the first contract will be signed in the first half of next year at the earliest, with follow-up procedures such as bidding.
Recognition of exceptions to the restriction on participation by large corporations is made only in the fields of national security or equivalent business (Track 1), and the introduction of new technologies such as artificial intelligence (AI) (Track 2). If the case is materialized in the ‘private-invested SW project’, it is expected that large corporations will participate in various ways. The Ministry of Science and ICT plans to support the expansion of private-invested SW project results to many institutions. They plan to utilize the 'digital service professional contract system.
The digital service specialized contract system, introduced last year, is a system that allows cloud-related products and services that have passed deliberation to be registered at the Public Procurement Service shopping mall and introduced through search and private contracts. Although the ‘private-invested SW project’ is the development of customized software for a specific institution, it can be converted into commercial software through some changes. It is possible to develop from a ‘private-invested SW project’ to a ‘private-invested commercial SW project', and large companies can earn additional profits. It also coincides with the keynote of the Ministry of Science and ICT, 'Commercial SW-centered SW industry innovation'. On the 3rd, Min-young Cho, head of the SW industry at the Ministry of Science and ICT, said, “The concern of large corporations about the ‘private-invested SW project’ is to expand and supply the development results to not only specific institutions but also other institutions. Linking with the digital service specialized contract system will help spread private-invested SW project.”
The Ministry of Science and ICT will also prepare guidelines for private-invested SW project within this year. The purpose is to invigorate the system by informing the ordering agency and large IT service companies of private-invested SW projects, and to provide them with reference when carrying out the project. Details necessary for private-invested SW projects such as procedure, method, and period will be included. They also initiated discussions with the Korea IT Service Industry Association. Hyo-geun Chae, Vice Chairman of the IT Service Association, said, “There are many government-led projects, and because the role of the private sector must be strengthened, the private-invested SW project has a lot of meaning in that.” He continued, “Various activities to revitalize the ecosystem and improve private profits should be possible based on the system, such as establishing an investment association or forming and participating in a consortium with SMEs.”
<Table> Outline of Private investment-type SW Project system
By Staff Reporter Ho-cheon An (email@example.com)