Korean public procurement A-value bid floor calculator: Separating bid estimates and rates — Worked Scenario

What this scenario actually checks

Use this scenario calculator to examine an A-value-adjusted bid threshold for a Korean public procurement tender. First estimate a reference expected price from the entered base amount and assumed adjustment percentage. Next apply the entered floor ratio to the price remaining after the A-value deduction, then add the A-value back. The tool rounds the resulting lower threshold upward to a whole KRW and compares it with your proposed offer. It does not predict the actual bid-winning price, official estimated price or eligibility under a specific tender.

This walkthrough focuses on separating bid estimates and rates. It follows the published tool inputs, not a new formula or an automatically verified legal, financial, medical or engineering determination.

Start by preparing the right inputs

Read the tender notice and verify its calculation basis, A-value items, applicable floor percentage and pricing rules. Enter the base amount in KRW. Enter an assumed adjustment rate between -5% and +5%, the A-value in KRW, the bid-floor ratio as a percentage and a proposed offer in KRW.

Before copying the example, confirm that each entered unit, date, dimension and default matches your real task. Changing only a visible number without revisiting its assumptions can change what the answer means.

• Read the tender notice and verify its calculation basis, A-value items, applicable floor percentage and pricing rules. Enter the base amount in KRW.
• Enter an assumed adjustment rate between -5% and +5%, the A-value in KRW, the bid-floor ratio as a percentage and a proposed offer in KRW.
• Assumed expected price = base × (1 + adjustment ÷ 100). The floor is rounded up from (expected price − A-value) × floor ratio ÷ 100 + A-value.

Worked example with the calculator

Use the following input values: Base KRW 500,000,000; adjustment 0%; A-value KRW 20,000,000; floor 88.745%; offer KRW 450,000,000.

The example output is Assumed expected price KRW 500,000,000; floor KRW 445,976,000; offer exceeds floor by KRW 4,024,000. The assumed price after subtracting A-value is KRW 480 million. Multiplying by 88.745% and adding back KRW 20 million gives a scenario floor of KRW 445,976,000. The offer's adjusted ratio is about 89.58%.

For comparison, the same tool also documents these inputs: Base KRW 100,000,000; adjustment 0%; A-value KRW 0; floor 88.745%; offer KRW 90,000,000. Its result is Scenario floor KRW 88,745,000; offer exceeds floor by KRW 1,255,000; adjusted offer ratio 90%. With no A-value and no price adjustment, the simplified expression reduces to base amount × floor percentage.

What can change the answer

Assumed expected price = base × (1 + adjustment ÷ 100). The floor is rounded up from (expected price − A-value) × floor ratio ÷ 100 + A-value. The tool also reports the effective A-adjusted offer ratio = (offer − A-value) ÷ (expected price − A-value) × 100 and offer minus rounded floor. Only use the result as a scenario; the actual official tender conditions take precedence.

Is 88.745% the correct floor percentage for every Korean G2B tender? No. The applicable percentage and A-value handling depend on the procurement notice, contract type and governing requirements. Enter the actual tender-specific inputs.

Does an offer above this threshold guarantee a winning bid? No. This calculator models one lower-bound scenario. Bid validity, evaluation criteria, actual estimated price and competing offers are determined separately.

Before using the result for a real decision

For separating bid estimates and rates, check the original measurements and input units, and save the assumptions alongside any number you share.

Where legal rules, official allowances, equipment ratings or contractual conditions matter, consult their current authoritative documents. An illustrative estimate is not a substitute for that verification.

• Reproduce the example before changing inputs
• Check all units and assumptions, including any default values
• Verify official or manufacturer-specific requirements outside the calculator