Private Contract for Big-ticket Arms Procurement Projects

The Ministry of Defense is now positively reviewing over changing big-ticket arms procurement projects from public bidding oriented to private contract oriented. An official at the Ministry said on June 6 that the public bidding system was introduced to enhance procurement transparency in the first place but it has caused serious problems such as slanderous statements by bidders against each other and leak of military secret. “Departments concerned will soon make consultations on this issue to decide whether to change the current arms procurement system or not,” said the official.

The public bidding system was first introduced to the FX project in 1997. Up until then, arms procurement projects were carried out by private contracts. There is a rising controversy over the issue in the military, since private contract system is feared to give rise to irregularities and subsequent undermining of national image.

A source in the air force said that positive effects such as technology transfer and more room for negotiation have outweighed negative effects in the process of pushing for the FX project. Meanwhile, a source in the navy argued that since, in effect, Korea is heavily dependent on the U.S. in arms procurement, public bidding system involving many other countries is likely to cause unnecessary diplomatic disputes.

ysh1005@donga.com