Government Procurement Resources - Japan - Asia-Pacific Economic Cooperation

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GPEG has developed general information about efforts to liberalise government procurement by APEC's 21 Member Economies, as well as specific information about the current government procurement policies, procedures, trade opportunities, and key people to contact in each economy. To access this information, simply click on the drop down menu below.

Administrative Structure
In Japan, government procurement is conducted based on procurement contracts entered into by each procuring entity in a decentralized manner. The procurement procedures are provided for in the Accounts Law and relevant regulations with regard to central government entities, in the Local Autonomy Law and relevant regulations with regard to sub-central government entities, and in accordance with the procurement procedures operated under the oversight of the central government entity concerned with other entities. All of those laws and regulations are consistent with the provisions of the WTO's Agreement on Government Procurement, to which Japan is a party.

General Procurement Policies
Government procurement in Japan has long since placed no restrictions on place of origin or nationality of supplier, and has been carried out on the principle of non-discrimination, and in principle on a basis of open tendering. Japan employs fair, open and transparent procedures, whose scope of application has been expanded to the procurement of services as well as procurement by sub-central government entities and other entities since 1996. There are no local content requirements and no preferential treatment is granted to domestic suppliers. With regard to procurements by central government entities and other entities subject to the WTO Agreement (excluding sub-central government entities) in such major sectors as computer products and services, telecommunications products and services, medical technology products and services and construction services, Japan has taken voluntary measures that go beyond its obligations under that Agreement.

Procurement Practices
Japanese law establishes three types of tendering. Under "open tendering" each entity makes public notices of intended procurement in the official gazette Kanpo or its equivalents at the local level and invites qualified suppliers to participate in tendering procedures. The contract is awarded to the bidder who submits the lowest-priced tender. In accordance with the measures, open tendering is used to the maximum extent possible for procurement of products and services (excluding construction services and related technical services) costing at least SDR 100,000. Under "selective tendering" each entity makes public notices of intended procurements in the official gazette or its local equivalent indicating that applications to qualify for participation in competitive tendering will be accepted. Among those suppliers identified as qualified through the qualification process of each procuring entity, the entity designates the suppliers deemed to have the capacity to fulfill the contract. The contract is awarded to the supplier who submits the lowest-priced tender among those designated. Under "single tendering" (or "limited tendering") entities are allowed on an exceptional basis to conclude contracts with designated suppliers without using competitive tendering procedures. In principle, those who wish to participate in open tendering and selective tendering procedures must receive qualifications from procuring entities and be included in the permanent list of qualified suppliers prepared and updated by procuring entities.

Publishing Procurement Information
A central procuring entity publishes a notice in English in the official gazette, Kanpo, for the invitation to tender at least 40 days in advance of the closing date of receipt for tenders. The notice includes full information required by prospective bidders. An electronic data base containing the information published in Kanpo is also available through on-line information and data base retrieval services. Those who intend to participate in competitive tendering procedures can obtain tender documentation containing detailed information on tender from the sub-central government entity concerned. Procuring entities may hold meetings to explain proposed procurements. Methods to obtain tender documentation, and date and place of such meetings are indicated in Kanpo notices. Kanpo also publishes information on contract awards. Information on sub-central government procurement is made public by each procuring entity through the local equivalents of Kanpo.

Complaint/Appeal Procedures
The Office of Government Procurement Review (OGPR), within the Prime Minister's Office, implements the provisions of the WTO Agreement regarding bid challenge procedures. For procurement by central government entities the Government Procurement Review Board (GPRB) processes and considers complaints in a fair and neutral manner in accordance with the specific procedures set out by the OGPR. Prefectural governments and designated cities have established their respective procedures to process complaints regarding procurement subject to the Agreement.

Key Contacts and Links
Contact Agency
Japan External Trade Organization (JETRO)
Mr. Kato / Ms. Tanaka / Mr Kamada
Information Services Division
Information Services Department
Japan External Trade Organization
2-2-5, Toranomon, Minato-ku, Tokyo 105
Tel: (81-3) 3582 5549
Fax: (81-3) 3589 4179
E-mail: sea@jetro.go.jp

Internet Home Page
http://www.jetro.go.jp/en/matching/procurement/
http://www.mofa.go.jp/policy/economy/procurement/index.html
(General information and tender notices)
http://www5.cao.go.jp/access/english/chans_main_e.html
(Information on complaint review procedures)

Published Opportunities
Tender notices are updated daily in the official gazette Kanpo, published by the Printing Bureau of the Ministry of Finance.
To subscribe, write the Bureau at:
Kasumigaseki 1-2-1, Chiyoda-ku, Tokyo
or call: (81-3) 3504 3885

Subscription fee is 3,596 yen per month or 136 yen (plus 136 yen to be added for every additional 32 pages) per day. English procurement notices listed in Kanpo are accessible on the Internet through PC-VAN, Nifty-Serve or the JETRO Homepage.