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01
Products designated and notified as excellent procurement products can be purchased through a private contract.
Article 26 Paragraph 1 Subparagraph 3 of the 「Enforcement Ordinance of the Act on Contracts to which the State is a Party」In accordance
with the Article 7 (1) of the Act, the cases where a private contract can be used are as follows. When a person purchases each of the following
products directly produced by a small and medium-sized business owner in accordance with Article 2, Subparagraph 1 of the 「Small and
Medium Enterprises Promotion Act」.Products designated and notified as excellent procurement products in accordance with Article 30 of the
「Enforcement Decree of the Act on Procurement Business」
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02
Exemption from responsibility for purchasing loss by the person in charge of purchasing
In accordance with Article 14, Paragraph 3 of the 「Act on Promotion of Purchase of Small and Medium Business Products and Market Support」,
the person in charge of purchase of a public institution that has contracted to purchase technology development products subject to priority
purchase shall not be held liable for any loss caused by the purchase of the product unless intentional or gross negligence is
proven.
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03
There is no obligation of an audit report in case of signing an excellent product contract
When a private contract is concluded in accordance with Article 26, Paragraph 1 of [Enforcement Decree of the Act on Contracts to which the State is
a Party], the contents of the contract shall be reported to the head of the central government agency, and the head of each central government agency
shall notify the Board of Audit and Inspection of the contract under Paragraph 1, Subparagraph 2 of the reported matters. However, private contracts for
excellent products are not applicable because they follow the provisions of Article 26, Paragraph 1, Subparagraph 3, Item F of the [Enforcement
Decree of the Act on Contracts to which the State is a Party].
(Refer to Article 26, Paragraph 5 of the Enforcement Decree of the Act on Contracts to which the State is a Party)_Excerpt from Public Procurement Service’s Excellent Product Program FAQ
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04
here is no restriction on purchase amount for excellent products
When purchasing goods of a designated and publicly notified good procurement joint trademark, in accordance with Article 31 of the [Enforcement
Decree of the Procurement Business Act] under the Article 26 Paragraph 1 Subparagraph 3 of the [Enforcement Decree of the Act on Contracts to which
the State is a Party], private contracts may be concluded only when purchasing goods less than the amount notified by the Minister of Strategy and Finance.
However, under the subparagraph 3 of the same paragraph, there is no separate restriction on the purchase amount in the case of a private contract for
products designated and notified as excellent products in accordance with Article 30 of the [Enforcement Decree of the Procurement Business Act].
(Refer to Items G and F of Article 26, Paragraph 1, Subparagraph 3 of the Enforcement Decree of the Act on Contracts to which the State is a Party)
_Excerpt from Public Procurement Service’s Excellent Product Program FAQ