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The Strategy of Participating in the U.S. Government Procurement business management, free trade

Author Jione Jung, Hyeri Park Series 08-01 Language Korean Date 2008.04.30

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The Free Trade Agreement (FTA) with the United States would likely provide more access to the U.S. government procurement contracts by reducing the contract threshold and improving the requirement for participation. As Korean government advertises the positive results of the FTA negotiation, Korean firms, particularly small and medium-sized businesses show great interests on participating in U.S. government procurement market. The objective of this study is to propose the firm strategies and government support plans to participate in the U.S. government procurement contracts. Firms that have experience of government procurement in the United States tells that to be successful in the U.S. government procurement market, the most important thing is to ask oneself if the U.S. government is a right market for selling its prouduct or service before deciding on bidding. The advantage of government procurement is that once a contract is awarded, the contract likely lasts long, while the bidding process is complicated and time and money consumes. Also recently, the competition between firms becomes tougher. Therefore, a firm should differentiate the contents and qualities of the product from others. The role of the government is to encourage more firms to participate and support their efforts. The government programs currently available need a major upgrade. A support system should be newly constructed by integrating similar programs managed by related agencies and by developing each agency's special area. (The rest is omitted.)

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