Regulations Governing Assistance for Small and Medium Enterprises Participating in Government Procurement Article 3

In conducting a procurement, an entity may, depending on the characteristic and the scale of the procurement, prescribe that the tenderer must be a small or medium enterprise or encourage the tenderer to invite small or medium enterprises for subcontracting, to the extent not contrary to provisions of laws and regulations and the treaties or agreements to which this nation is a party.In conducting a procurement of a value not reaching the threshold for publication, small and medium enterprises shall be awarded in principle except that such small and medium enterprises are incapable to carry out the procurement in question, that their competitiveness is inadequate, or, that their tendering prices are unreasonable, or that circumstances prescribed in each subparagraph of paragraph 1 of Article 22, subparagraph 1 and 3 of paragraph 1 of Article 104, and each subparagraph of paragraph 1 of Article 105 of the Act.