Japanese Government Procurement
About Government Procurement
Agreement on Government Procurement
The Agreement on Government Procurement, which went into effect in January 1981, sets forth rules for non-discrimination between foreign and domestic sources and for the treatment same as Japanese nationals. This Agreement was subsequently reviewed on a number of occasions, and as a result of negotiations concurrent to those of the Uruguay Round, the Agreement was amended 1) to broaden the scope of government procurement (applying to regional governments, and to a broader range of government-related entities); 2) to apply the Agreement to the procurement of services; and 3) to introduce a complaint review system pertaining to procurement procedures. This Agreement, signed by 23 countries, went into effect on January 1, 1996.
(Cabinet Office CHANS)
Government Procurement in Japan
The Japanese Government has established voluntary measures designed to increase market access beyond those established under the WTO agreement on government procurement.
These measures include the following:
- Clarification of government procurement procedures
- Open tendering procedures in principle
- Improved distribution of government procurement information
These measures cover procurement of goods and services by government ministries and agencies and government-related entities. The key elements of these measures are as follows:
- As for government ministries and agencies, the standard minimum procurement amount is 100,000 SDRs, the same as that established under the revised WTO agreement on government procurement (GPA), which came into effect in April 2014. As for government-related entities, it has been lowered to 100,000 SDRs, which represents a greater degree of openness than that established under the GPA (the standard minimum amount under this agreement is 130,000 SDRs).
- Independent measures (WTO-plus measures) have been established for contracts exceeding 800,000 SDRs, which are not included in the agreement on government procurement. These include the provision of procurement information prior to tenders (through seminars and the like), procedures for requests to potential suppliers to submit materials for market surveys and procedures for requests to potential suppliers to submit comments on specification proposals.
Standard SDR Values and Yen Conversion for Government Procurement
The standard values for the voluntary measures on government procurement, based on Notification No. 23 of the Ministry of Finance as published in the official gazette (Kanpo) dated 25 January 2016, have been set as follows:
(Applying to procurement contracts awarded between 1 April 2016 and 31 March 2018)
- SDR 500 equivalent to 80,000 yen
- SDR 100,000 equivalent to 16 million yen
- SDR 385,000 equivalent to 62 million yen
- SDR 800,000 equivalent to 130 million yen
- SDR 2 million equivalent to 320 million yen
- SDR 5 million equivalent to 800 million yen
* SDR (Special Drawing Right)
The value of the SDR is determined on the basis of the International Financial Statistics published by the IMF (International Monetary Fund) and in accordance with the weighted average for a fixed period of the four leading currency rates among the IMF member countries, namely, the US dollar, Euro, Japanese Yen and British sterling pound. In Japan, the amount of yen equivalent of SDRs to be used for a fixed period is calculated based on this value. The SDR value has been revised every two fiscal years under the notification of the Minister of Finance since 1988.
This database is updated based on the official gazettes (Kanpo, or Government Procurement Announcements) published by National Printing Bureau, at 15:00 on the date of the gazette publication (except for the year-end and New Year holidays). This Website will be unavailable for several minutes during the data uploading, but this is not a system failure, so please wait for a while and try to access the site again.
The range and the estimated value of procurement contracts covered by the Agreement on Government Procurement
Threshold Values Specified in the Agreement on Government Procurement and the Japanese Voluntary Measures and Their Equivalent Values in Japanese Yen (valid from 1 April 2016 through 31 March 2018). The threshold values, in Japanese yen, are published in the government's official gazette, "Kanpo," in late January every two years.
|2. Construction services||450||74,000||*||*|
|3. Architectural, engineering and other technical services covered by this Agreement||45||7,400||*||*|
|4. Other services||10||1,600||10||1,600|
|2. Construction services||1500||247,000||*||*|
|3. Architectural, engineering and other technical services covered by this Agreement||150||24,000||*||*|
|4. Other services||20||3,300||*||*|
|2. Construction Services for Entities in Group A except Japan Post||1500||247,000||*||*|
|3. Construction Services for Entities in Group B and Japan Post||450||74,000||*||*|
|4. Architectural, engineering and other technical services covered by this Agreement||45||7,400||*||*|
|5. Other services||13||2,100||10||1,600|
*GPA rate is applied
(Ministry of Foreign Affairs of Japan)
Entities Covered by the Agreement on Government Procurement
Each procuring entity has a contact point for the provision of information and suggestions on particular government procurements.
Please see “Contact Points on Government Procurement” on “Japan's Government Procurement: Policy and Achievements Annual Report (FY 2010 version) (Cabinet Secretariat)”