HD Hyundai Heavy Industries has been blocked from winning the defense contract due to the penalty regulation of the Defense Acquisition Program Administration

Reporter Kim Jisun / approved : 2023-10-12 05:58:22
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[Alpha Biz=(Chicago) Reporter Kim Jisun] In July, the court rejected an injunction filed by HD Hyundai Heavy Industries, which suffered a setback by 0.1422 points in selecting a preferred bidder for the Navy's next frigate construction project.

In the meantime, the government changed the penalty score criteria for security accidents at the end of last year from 'three years after indictment' to 'three years after confirmation of the sentence', and HD Hyundai Heavy Industries will continue to receive penalty until at least November 2025. Nine employees of HD Hyundai Heavy Industries were indicted in September 2020 on charges of violating the Military Secrets Protection Act, and eight of them were sentenced to prison in November 2022. If the sentence of the other one, who is still in trial, is confirmed, the period will be extended further.

According to industry sources on the 12th, when HD Hyundai Heavy Industries failed to select the preferred bidder for the Ulsan-class deployment Ⅲ No. 5 and 6 construction project, it challenged the Defense Acquisition Program Administration's evaluation criteria and filed an injunction against the Defense Acquisition Program Administration in August, and the 50th civil affairs department of the Seoul Central District Court rejected the injunction on the previous day. HD Hyundai Heavy Industries' final score in this bid was 91.7433 points, slightly behind Hanwha Ocean (91.8855), which was selected as the preferred bidder.

HD Hyundai Heavy Industries received a security deduction of 1.8 points in the evaluation of the weapons system proposal for the next frigate building project as a company official who filmed and shared military secrets, including the concept design related to the next-generation Korean destroyer (KDDX) project, was found guilty in November last year.

 

Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)

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