Hi all and welcome back. We have been studying together the last couple of sessions about the global public procurement. By this time, everyone, I think you start to realize that this is not a simple study, they're very complicated but very practical. Benefits you may get at the end of the day is actually you can apply this knowledge, some of learning into practice. You may be able to come up with a specific marketing or business development plan for your company entry into public procurement market. Last couple of sessions we've been talking about a specific issue related to doing business with the US Federal Government but I'm not going to stop there because we not only going to talk about the US Federal Government public procurement but we are going to talk about United Nation public procurement in the next following session. But all of the information, what we shared together while we learn, because this is the online format it's rather difficult, sometime I encourage you and going into Google and type it in. I mean that we have some limit to what we can do? I rather want to have a interactive for our learning opportunity, we may have opportunity in the future but at the moment, it is very much one direction. I'm telling you something and you have a very little opportunity to participate in what we are doing. But this area of the public procurement is one of the key economic development area and because instead of involving with the commercial public procurement as you as a supplier, price should dictate overall term and then the longevity of your contract depend on the pricing in many, many cases and technical capability another one but the public procurement has suffered from a flat form. A, you have to comply with all the rules and regulation, then B, you have to know exactly what you're doing and then number 3, you have to be very specific on target customer who you are going to work with. So this session I want to summarize everything while we learn and give you a little bit different approach what we can learn together for the next couple of session including UN Public Procurement. I want to share with you one brochure. This is one of the promotional brochure from KAIST that I am Head of the Center for Global Public Procurement and also Director of the IGMP Course. So IGMP Course, they're currently run by the KAIST. We have a very unique program and most of what you learn in this session cover, we got more than 80 hours of the study program. This is a one semester non-degree program and executive program. The main focus of the KAIST IGMP course is basically teaching industry. Student, we don't take student less than five years practical experience so you have to be at least in oversea business development, oversea department, to do over some oversea marketing division at least for five-year plus. So most of them are actually a company executive, a senior manager, because this course is meant to teach you how to manage the global marketing and the international competitive bidding and global public procurement. So in this IGMP Course we are teaching for major public procurement contracting authority, such as US Federal Government that you are learning right now, and then United Nation procurement that we are going to learn in the next couple of session, and we also have very serious in depth learning about to do business with multilateral development banks such as the World Bank and the Asian Development Bank. Especially Asian Development Bank, we have a senior executive from Asian Development Bank for the procurement division coming along to Korea with this IGMP Course and they teach us how to engage, how to get prepare the documentation, how you participate your business in ADB structure, the business opportunity in Asian country. Also, we have another major continental authority is EU, European Union Public Procurement, so we have four main public procurement agencies as a target customer. All the students coming in, they will learn basic skills about how to prepare your documentation, writing capability statements and they even do presentations, skill share. Then we go into a specialized area, whether you come from a health sector, the manufacturing industry, so we have a study group. Then what individual students are required to do is, they start to write a proposal. If you want to enter into US federal market with product that your company is producing or service your company is involved with, then you are required to prepare a decent proposal for US Federal Government. Other students may write a proposal for United Nation, and etc. Currently, IGMP is only provided in Korean. It's a mixture of the Korean and English lecture together, but in the future we are planning to have English the lecture, provided with basically the same curriculum. In the future, if anyone in Asian country interested in joining our program, we will have opportunity to promote and then there will be excellent opportunity to study at KAIST, one of the most productive and then famous as the qualified university in Korea and Asia to learn about the Global Public Procurement. Having said that, all the area we learned so far is a very difficult area. Let's go back what we learned so far. We talked about the principle of the Global Public Procurement. The principal is Number 1, the defining what the public procurement is, where the source of funding, where the money comes from first, so if the money comes from private source, it is not public procurement. Number 2, because the money comes from public fund, we have rules and regulation to comply, so that's very important to do with transparency, to do with procedural fairness, and also the equal-opportunity or non-discrimination for the process itself, and we learned about that one. Also, we learned overall concept of the Global Marketing and then the history of the public procurement goes back to Roman. Also the Egyptian and time goes back. Also we talked about general principle of the World Trade Organization, the legal framework like the Government Procurement Agreement. Then we follow up with the additional information, how US government one hand encouraging a free trade by having Trade Agreement Act, Korea is one of the signatory country, and other hand discouraging oversea company come in the country by imposing a Buy American Act, BAA. When you have a free trade agreement with the US government, most of the restriction limit in Buy American Act will be waived by the Trade Agreement Act. Chapter 17, in this instance, KORUS, Korea-US Trade Agreement, Chapter 17 is for public procurement. But there is a separate provision and exclusion from Free Trade Agreement, largely for defense item or anything to do with the national security. The country normally, in this instance, Korea and US, equally, they have a separate approach and they do not open that particular market for Korean company getting in. Then we talked about 15 major US Department. The reason I use US Government as a benchmark example is that they promote non-discrimination policy, they promote transparency policy, they promote procedure fairness as a policy. That's why they got three major components all well-balanced in their procurement policy and in the way of implementing everything through Federal Acquisition Regulation. It's 1800 more pages of very serious guiding post. People used to call it, they still call it, the Bible of Public Procurement for US Federal Government. Using US federal government as a benchmark is because they have all these three elements well balanced. We can learn a lot from this approach. Whether you are from a developing country or non-developing country. The carrying your contract successfully through international competitive bidding either for the public procurement, for other means of the contract including PPP is a major challenge. It's a very attractive business, but not an easy step to move forward. Then we talked about a specific agency with SBA, Small Business Administration in the US, where they have a number of Small Business Certification Program based on the gender; women on, and also based on the ratio preference; Asian American and the Latino American. These small businesses can have up to 33 percent of US federal government procurement budget allocated. Therefore, it is already good strategy working with these companies instead of you or Korean company trying to be prime contract for US federal government. If you're working at a prime contract you will have opportunity to make more money and control the process. But reversely, you will have the great risk of financial burden, and also operational risk, and also legal exposure to comply with all the rules and regulations that you are not familiar with. It is always smart move to look at that way. Lastly, we have to look at GSA contract, which is, I compare it as a fishing license. The government will issue prequalification phase at fishing license. Once you're given fishing license, then it'll be your capability going up, make it happen, make a sale. This area of the GSA, the mass, has been modified since November 2019 and now they have a slightly different way to operate. This is not something that you can do yourself. I don't know why you trying to do something. Simply googling something is not going to help you at all. You better get professional advice, even cost a little bit of the money. All these issues we've talked about so far, are all specific issue covering with the Kaist IGMP. If you have any question on this lecture, you may send the email to IGMP or Center for Global Public Procurement at Kaist. We're more than happy to provide you answer in our capacity. Also in the future, I hope Kaist will have a separate curriculum for the English lecture for IGMP course. The preview of next couple of session will be given on the procurement for the United Nations and the how a developing country, especially an Asian country, can get benefit from UN procurement. They spend More than $18 billion every year, not like US. UN does not have any other barrier, any other legal restriction limit other country coming in like US they have The Buy American Act. United Nations or UN member country, unless you are a sanction like North Korea and few other country, all other member countries are eligible to register the vendor can do business with the UN. We are going to talk about that, that specific issue and maybe covering a bit more strategic issue. How to develop model for public procurement market. I want to say thank you again for you to follow up with all the lecture. This has not been easy session. If you have any opportunity go back in previous slide, check on it and then use your own study reference to check it out. If you have any further questions, you may write email to me. Thank you very much, we'll see you next session. Thank you.
