際際滷

際際滷Share a Scribd company logo

Us procurement strategy 2020 by Taejin Um

Taejin (Brian) U.
Taejin (Brian) U.

This document provides an overview of strategies for Korean companies to succeed in the US procurement market. It discusses the changing landscape due to US-China tensions and COVID-19, which create opportunities. Recent successes in COVID detection kits and PPE show preparation and patience are key. Lessons from other examples include proper preparation, understanding regulations and the market, and targeting the right buyers. The document also outlines the large US procurement market and contract vehicles like GSA schedules. It provides guidance on marketing, regulations, contracting, and defense procurement legal issues to consider when pursuing opportunities.

1 of 17
Download to read offline
US Procurement Market: How to approach the market and succeed 覩瑚記 覿譟磯 讌豢螻 炎概 by Taejin Um Contact: tju2009@gmail.com 2020.12.
C O N T E N T S 1. Lecturer profile 2. Landscape change and opportunities for Korean companies 3. Recent success example 4. More success examples 5. Lessons from success stories 6. Insights 7. US procurement market overview 8. Contract vehicle & JEDI contract 9. Marketing strategy 10. Foreign acquisition related regulations 11. Legal issues and contracting 12. Defense procurement contract Final comments: 4th Industrial Revolution and opportunities
Expertise Government regulation, U.S. procurement, international transaction and investment, M&A, IPR, compliance ( over 16 yr of experience) Education Yonsei University (B.A. in Public Administration, M.A. in International Relations) The George Washington University Law School (LLM, focusing on IPR and government procurement) American University Washington College of Law (LLM in Law and Government; concentration on government regulation) Professional experience 2005 ~ 2008 Posco, in-house counsel (intl transactions, investment, antitrust, compliance) 2012 ~ 2015 Kotra Washington Office, procurement advisor 2015 ~ 2018 LIG Nex1, in-house counsel (global defense procurement; analysis and preparation of proposals to various government entities around the world; contract negotiations) 2019 ~ current Hankyul Law Group, Senior Foreign Attorney (partner) 2020 ~ current Soongsil Univ. Adjunct Professor of Law 2020 ~ current Yonsei University, The Graduate School of Public Administration, Adjunct Professor of Law Taejin (Brian) Um, attorney at law (U.S.) 1. Lecturer profile
2. Landscape change and opportunities for Korean companies Change in the landscape of global business US-China trade dispute, COVID-19, global recession Retreat from China Korean premium Recent success in COVID-19 detection kit and related items in U.S. government market is a good example of new strategy build up business in US and use it as stepping-stone for global business (PR effect and references) US procurement market Over one trillion USD market (relatively) transparent system Federal market based mainly in Washington DC region great opportunity for Korean companies to make inroads into US public and commercial market
3. Recent success example: COVID-19 and U.S. procurement Due to COVID-19, Korean detection kits have been very successful in making inroads into U.S. procurement market via FDA EUA process. Several Korean companies including Osang Health and Seegene received authorization for FDA EUA. Several Korean companies as well as global pharmaceutical companies are also developing vaccine for COVID-19. PPE (personal protection equipment) are in shortage in U.S. Preparation and patience are essential for success.
4. More success examples Dental equipment to VA (Dept. of Veterans Affairs) and DoD (Dept. of Defense) schedule contract. Emergency tent to USAID PDA to United States DHS (Department of Homeland Security) LED to US Congress Cooperation through AbilityOne program *Note: Service vs. Product
5. Take-away: Lessons from success stories Elements of success Proper preparation Regulatory hurdles Work with professionals Patience and strategy Understand the market Targeting the right buyers
6. Insights What does it take to go further? Entry barrier : certain (reasonable) level of entry barrier, if you can overcome, would be in your favor technology regulatory (reasonable level of regulatory barrier is good) distribution channel set-asides ; mandatory sources *Food for thought: How can you create your own market and product?
7.1. US procurement market overview (1) Although the government procurement market is a conservative market, it has been a long time since the WTO government procurement agreement and the Korea-US FTA have opened up a large portion of US federal procurement to Korean companies, and US procurement officers' perception of foreign production has changed a lot. Korean companies are also actively entering the US and local procurement markets. Entering through partnership with preferential companies A contract given only to socially and economically weak companies. More than 20% of federal procurement is given only to preferred companies When a large company is a prime contractor, some subcontracting contracts are imposed to make contracts with socially and economically disadvantaged companies (subcontracting with prime). In some cases, subcontractors manufacturing some rare parts, etc., are more influential. Minority-owned, veteran-owned, woman-owned, 8(a) small business, HUBZone AbilityOne program: mandatory source Check out: GSA schedule, IDIQ
7.2. US procurement market overview (2) Benefits of doing business in Washington DC region Amazon HQ2 (2nd Headquarters) recently decided to enter into a partnership with Arlington County, a US IT-focused and economically growing Loudon County, state agencies and related organizations. Washington DC is not only the center of government procurement and international politics, it is also the center of global IT and economy One of the fastest growing areas in the United States. Also check: Buy American, Berry Amendment, security clearance (more below)
8. Contract vehicle & JEDI contract Concept of contract vehicle and similar concepts GSA schedule MAS (multiple award schedule) GWAC (Governmentwide Agency Contract) IDIQ (indefinite delivery, indefinite quantity) JEDI contract saga IDIQ contract Strategically essential element of future defense US DoD contract for AI and cloud computing (virtualization) 10 yr/10 billion USD Amazon MS bid protest Political implication
9. Marketing strategy B2B cooperation with companies with preferential qualifications, such as the AbilityOne entity GSA schedule Takes 12-16 months After completion of schedule contract, continuous marketing is necessary Long term plan: establishment in US soil; local employees and partners Reference, track record Domestic (in Korea) reference at the initial stage Reference with U.S. government can lead to many other opportunities PR effect in other countries, esp. middle east.
10. Foreign acquisition related regulations Buy American Act (BAA) indirectly favor domestic contractor by giving extra scores Exceptions Buy America Various acts in the area of infra Federal governments grant to state and local government Check case-by-case Berry Amendment Defense related items such as fabric, special metal Exceptions Conclusion: Check the foreign acquisition restriction case-by-case Check with contracting officer and expert Do not rely only on the RFP
11. Legal issues and contracting Government contract law in U.S. Separate body of contract law for U.S. government contract (Federal Acquisition Regulation) Each federal agencies has set of acquisition rules Case law of federal court Distinctive features in U.S. government contract law Example: Christian doctrine and COs authority Compliance Conflict of interest Foreign acquisition Compliance requirement may differ depending on the size of contract (e.g. TINA, internal compliance system) Subcontractor compliance requirement (flow-down)
12. Defense procurement contract: special issues Concepts in defense contract and national security related issues Export control (export license) check this issue at all times Offset contract FMS (foreign military sale) Security clearance In case of carrying out a defense contract, the person in charge of the contract often requires security clearance. BAE example (security agreement with DoD) M&A context CFIUS (The Committee on Foreign Investment in the United States) Securities law, SEC (Securities Exchange Commission) regulations, Antitrust law and related state laws
Final comment: 4th Industrial Revolution and opportunities Implication for government market? Legal & policy issues?
Thank you. Q&A Contact: tju2009@gmail.com

More Related Content

Us procurement strategy 2020 by Taejin Um

  • 1. US Procurement Market: How to approach the market and succeed 覩瑚記 覿譟磯 讌豢螻 炎概 by Taejin Um Contact: tju2009@gmail.com 2020.12.
  • 2. C O N T E N T S 1. Lecturer profile 2. Landscape change and opportunities for Korean companies 3. Recent success example 4. More success examples 5. Lessons from success stories 6. Insights 7. US procurement market overview 8. Contract vehicle & JEDI contract 9. Marketing strategy 10. Foreign acquisition related regulations 11. Legal issues and contracting 12. Defense procurement contract Final comments: 4th Industrial Revolution and opportunities
  • 3. Expertise Government regulation, U.S. procurement, international transaction and investment, M&A, IPR, compliance ( over 16 yr of experience) Education Yonsei University (B.A. in Public Administration, M.A. in International Relations) The George Washington University Law School (LLM, focusing on IPR and government procurement) American University Washington College of Law (LLM in Law and Government; concentration on government regulation) Professional experience 2005 ~ 2008 Posco, in-house counsel (intl transactions, investment, antitrust, compliance) 2012 ~ 2015 Kotra Washington Office, procurement advisor 2015 ~ 2018 LIG Nex1, in-house counsel (global defense procurement; analysis and preparation of proposals to various government entities around the world; contract negotiations) 2019 ~ current Hankyul Law Group, Senior Foreign Attorney (partner) 2020 ~ current Soongsil Univ. Adjunct Professor of Law 2020 ~ current Yonsei University, The Graduate School of Public Administration, Adjunct Professor of Law Taejin (Brian) Um, attorney at law (U.S.) 1. Lecturer profile
  • 4. 2. Landscape change and opportunities for Korean companies Change in the landscape of global business US-China trade dispute, COVID-19, global recession Retreat from China Korean premium Recent success in COVID-19 detection kit and related items in U.S. government market is a good example of new strategy build up business in US and use it as stepping-stone for global business (PR effect and references) US procurement market Over one trillion USD market (relatively) transparent system Federal market based mainly in Washington DC region great opportunity for Korean companies to make inroads into US public and commercial market
  • 5. 3. Recent success example: COVID-19 and U.S. procurement Due to COVID-19, Korean detection kits have been very successful in making inroads into U.S. procurement market via FDA EUA process. Several Korean companies including Osang Health and Seegene received authorization for FDA EUA. Several Korean companies as well as global pharmaceutical companies are also developing vaccine for COVID-19. PPE (personal protection equipment) are in shortage in U.S. Preparation and patience are essential for success.
  • 6. 4. More success examples Dental equipment to VA (Dept. of Veterans Affairs) and DoD (Dept. of Defense) schedule contract. Emergency tent to USAID PDA to United States DHS (Department of Homeland Security) LED to US Congress Cooperation through AbilityOne program *Note: Service vs. Product
  • 7. 5. Take-away: Lessons from success stories Elements of success Proper preparation Regulatory hurdles Work with professionals Patience and strategy Understand the market Targeting the right buyers
  • 8. 6. Insights What does it take to go further? Entry barrier : certain (reasonable) level of entry barrier, if you can overcome, would be in your favor technology regulatory (reasonable level of regulatory barrier is good) distribution channel set-asides ; mandatory sources *Food for thought: How can you create your own market and product?
  • 9. 7.1. US procurement market overview (1) Although the government procurement market is a conservative market, it has been a long time since the WTO government procurement agreement and the Korea-US FTA have opened up a large portion of US federal procurement to Korean companies, and US procurement officers' perception of foreign production has changed a lot. Korean companies are also actively entering the US and local procurement markets. Entering through partnership with preferential companies A contract given only to socially and economically weak companies. More than 20% of federal procurement is given only to preferred companies When a large company is a prime contractor, some subcontracting contracts are imposed to make contracts with socially and economically disadvantaged companies (subcontracting with prime). In some cases, subcontractors manufacturing some rare parts, etc., are more influential. Minority-owned, veteran-owned, woman-owned, 8(a) small business, HUBZone AbilityOne program: mandatory source Check out: GSA schedule, IDIQ
  • 10. 7.2. US procurement market overview (2) Benefits of doing business in Washington DC region Amazon HQ2 (2nd Headquarters) recently decided to enter into a partnership with Arlington County, a US IT-focused and economically growing Loudon County, state agencies and related organizations. Washington DC is not only the center of government procurement and international politics, it is also the center of global IT and economy One of the fastest growing areas in the United States. Also check: Buy American, Berry Amendment, security clearance (more below)
  • 11. 8. Contract vehicle & JEDI contract Concept of contract vehicle and similar concepts GSA schedule MAS (multiple award schedule) GWAC (Governmentwide Agency Contract) IDIQ (indefinite delivery, indefinite quantity) JEDI contract saga IDIQ contract Strategically essential element of future defense US DoD contract for AI and cloud computing (virtualization) 10 yr/10 billion USD Amazon MS bid protest Political implication
  • 12. 9. Marketing strategy B2B cooperation with companies with preferential qualifications, such as the AbilityOne entity GSA schedule Takes 12-16 months After completion of schedule contract, continuous marketing is necessary Long term plan: establishment in US soil; local employees and partners Reference, track record Domestic (in Korea) reference at the initial stage Reference with U.S. government can lead to many other opportunities PR effect in other countries, esp. middle east.
  • 13. 10. Foreign acquisition related regulations Buy American Act (BAA) indirectly favor domestic contractor by giving extra scores Exceptions Buy America Various acts in the area of infra Federal governments grant to state and local government Check case-by-case Berry Amendment Defense related items such as fabric, special metal Exceptions Conclusion: Check the foreign acquisition restriction case-by-case Check with contracting officer and expert Do not rely only on the RFP
  • 14. 11. Legal issues and contracting Government contract law in U.S. Separate body of contract law for U.S. government contract (Federal Acquisition Regulation) Each federal agencies has set of acquisition rules Case law of federal court Distinctive features in U.S. government contract law Example: Christian doctrine and COs authority Compliance Conflict of interest Foreign acquisition Compliance requirement may differ depending on the size of contract (e.g. TINA, internal compliance system) Subcontractor compliance requirement (flow-down)
  • 15. 12. Defense procurement contract: special issues Concepts in defense contract and national security related issues Export control (export license) check this issue at all times Offset contract FMS (foreign military sale) Security clearance In case of carrying out a defense contract, the person in charge of the contract often requires security clearance. BAE example (security agreement with DoD) M&A context CFIUS (The Committee on Foreign Investment in the United States) Securities law, SEC (Securities Exchange Commission) regulations, Antitrust law and related state laws
  • 16. Final comment: 4th Industrial Revolution and opportunities Implication for government market? Legal & policy issues?