Paragraph (1)
Where the research and development work related to the national defense industry on which a National Defense Technology Institutions commissions Private Entities to do is pertaining to an original model, or an object which is manufactured or supplied for the first time, it shall be handled in the manner for research and development , experiment or development and, where the budget for such work exceeds the published amount as prescribed by the Government Procurement Law, It may be handled by adopting the restricted invitation for bids measuring under the Government Procurement Law. The same rule shall apply where the volume production after the research and development work involves exclusive rights, the Private Entities have rights for exclusively manufacture or supply, or in the cases where there are no other appropriate substitutes.

Paragraph (2)
When the commission as referred to in the preceding paragraph pertains to a confidential or highly confidential procurement as prescribed by the Government Procurement Law, the National Defense Technology Institutions may combine the first-time research and manufacture or development and volume production [of the new products] into one case and attend to the procurement of the same. However, the procurement shall comply with the provisions of the "Applicable Scope for Special Military Procurement and Treatment Rules".

Paragraph (3)
Where the commissioned first-time research and manufacture or development of new products as referred to in the second paragraph is done at the entire expense of the Private Entity itself, the volume production quantity shall be estimated and the cap on the unit price [of the products] on volume production shall be agreed upon in advance.

Where the production and manufacture, or maintenance and repair work related to the national defense industry which a National Defense Technology Institution commissions a Private Entity to do conforms to a procurement under the Government Procurement Law which may be handled by adopting the selective invitation for bids measure, priority shall be given to the selective invitation for bids measure; provided, however, that this restriction shall not apply to a procurement which may be handled by adopting the restricted invitation for bids measure.

Paragraph (1)
When a National Defense Technology Institution adopts selective tendering procedures from Private Entities for commissioning in accordance with the provision of the preceding article, it shall carry out selective tendering procedures according to the following procedures:
Subparagraph (1)
Public display: Including plan display and project display. The display notice shall be published in a government procurement gazette and publicized on information network.
Subparagraph (2)
Registration of intent: Private Entities shall register in writing their intents to accept the assessment or accept the commission to conduct research and development, trial manufacture, or maintenance projects at their own expense.
Subparagraph (3)
Assessment or commissioned research and development, trial manufacture or maintenance at own expense:
Item (1)
The National Defense Technology Institution shall draw up assessment criteria and procedures and conduct assessment by itself or by commissioning a professional organization to ascertain the capability of Private Entities.
Item (2)
After a Private Entity has registered in writing its intent to accept commission to conduct research and development, trial manufacture or maintenance activities at own expense, the National Defense Technology Institutions will sign a research and development, trial production or maintenance agreement with the Private Entity, which shall specify expressly the acceptance criteria, conditions and procedures.
Subparagraph (4)
Establishing a list of qualified Private Entities:
The Authority-in-charge shall, based on the results of assessment or commissioned research and development, trial manufacture or maintenance at own expense, establish a list of qualified Private Entities, and shall provide the list to the National Defense Technology Institution for it to carry out selective tendering procedures.
Paragraph (2)
Private Entities that have passed the assessment or commissioned research and development, trial manufacture or maintenance at own expense will be issued a certificate of qualification.

Paragraph (1)
A National Defense Technology Institutions shall periodically make a compilation of all the items for which commissioning is possible and the expected benefits, and submit the same to the authority-in-charge to obtain the latter's approval. The authority-in-charge shall submit its approval to the competent authority for record purposes.

Paragraph (2)
The selection by the National Defense Technology Institutions of a research and development, production and manufacture, or maintenance and repair item which it intends to commission a Private Entity to engage in shall be made in accordance with one of the following provisions:

Subparagraph (1)
The assembly, subassembly, spare parts and accessories of military weapons and equipment require a steady source of supply of such items.

Subparagraph (2)
Large quantities of such item are required within the current year, but the National Defense Technology Institutions does not intend to build up capability itself to supply them.

Subparagraph (3)
Such item can effectively enhance mission capable military weapons and equipment.

Subparagraph (4)
Such item is beyond the National Defense Technology Institution's current production capability, the scope supported by its current conceptual design, or the scope of technical supports available at the stages of research, development and certification, and it is necessary to commission the Private Entity to supply with the same.

Subparagraph (5)
The Private Entity is willing to conduct research and test- manufacture of such item at its own expense, and such item conforms to the national defense requirements.

Subparagraph (6)
Such item relates to a processing treatment or special technology used in the manufacturing process related to the National Defense Technology Institutions' production and manufacture of military products, and there is an actual need for establishing a satellite factory system [for the same].

Subparagraph (7)
Such item relates to the acceptance of the transfer of technology of military weapons and equipment procured from abroad.

Subparagraph (8)
Such item is needed for purposes of improving the performance or quality of the software or hardware of the current products specifically for military use, or products for common military and civilian use; renewing the current production technology, or reducing the production costs.

Subparagraph (9)
Such item relates to technology which has been brought in through such methods as domestic or international technical cooperation, technology transfer and reciprocal exchange; it has passed certification and has a certificate, and an evaluation has ascertained that it may be used for purposes of research, manufacture, or improvement of military products.

Subparagraph (10)
Such item is a high-tech and precision military weapon and equipment system and an important item for the development of the National Defense Technology Institutions at the present stage, and it is necessary to establish a domestic satellite system [for the same].

Subparagraph (11)
Such item is a product produced inside our country under a technical cooperation scheme by reason of an industrial cooperation acquired through a government procurement from abroad, and it is needed for national defense purposes.

Subparagraph (12)
Such item relates to technology, equipment or special resources for which the Private Entity already has plans to build up, and also the intent to accept the commission.

Subparagraph (13)
Such item is a policy-commissioning item which has been approved by the competent authority.

When a National Defense Technology Institutions accepts a commission from a Private Entity to engage in research and development, production and manufacture, or maintenance and repair items, it shall select such items according to the following principles:

Subparagraph (1)
The first Priority shall be the research and development, production and manufacture, or maintenance and repair items for which the National Defense Technology Institutions possesses special technology, capability, or resources to engage in.

Subparagraph (2)
The first Priority shall be those production items whose original place of manufacture and production is not inside our country.

Subparagraph (3)
Items which can promote the development of the national defense technology industry's products specifically for military use, or common military and civilian use.

Subparagraph (4)
Items which can reasonably and effectively make use of current resources, and which are beneficial to the property revenue [of the National Defense Technology Institutions].

Subparagraph (5)
Items which shall not affect the National Defense Technology Institutions' duty to provide military supplies.

Subparagraph (6)
The National Defense Technology Institutions shall not select items for which the domestic private sector already possesses total capability and can effectively supply the same to meet the national defense requirements.

Paragraph (1)
When a National Defense Technology Institutions accepts a commission from a Private Entity, it shall, unless otherwise provided by the national defense policies, select the target which is the most beneficial to it in accordance with the principle of fairness, with due consideration to the reasonableness of the commercial terms.

Paragraph (2)
When The National Defense Technology Institutions accepts a commission from a government agency and needs to get service or goods in order to achieve the objective of the commission, it shall act according to the provisions of the Government Procurement Law.

A National Defense Technology Institutions shall select the target from which it will accept a commission in accordance with the following procedure:

Subparagraph (1)
Commissioning Requests: The Private Entity shall furnish the commissioning requests in writing.

Subparagraph (2)
Formation of Evaluation Committee: There shall be at least seven members on the evaluation committee, composed of personnels dispatched by the authority-in-charge and the National Defense Technology Institutions. If necessary, the competent authority may dispatch personnels to participate. The meeting method shall be used to make resolutions of the evaluation committee, and a resolution may be passed by a majority vote of the members and presented at a meeting attended by a majority of the committee members. The evaluation committee may retain attorneys, accountants, or other specialists to serve as its advisors.

Subparagraph (3)
Review and Approval: The resolutions of an review meeting of the evaluation committee shall be submitted to the authority-in-charge to obtain the latter's approval, the resolutions and the approval shall be then submitted to the competent authority for record purposes. Where the evaluation committee is formed by the authority-in-charge, its resolutions shall be submitted to the competent authority to obtain the latter's approval.
Subparagraph (4)
Execution of Agreement: The National Defense Technology Institutions shall execute a commissioning agreement with the commissioning party.