Government Procurement Procedures Of Japan

Japan has made the necessary changes in its legal infrastructure to implement fully its obligations under the Agreement on Government Procurement, produced under the auspices of the General Agreement on Tariffs and Trade. The Accounts Law mandates that open tendering procedures be utilized as the principal vehicle for government procurement in Japan. These procedures have the objective of encouraging participation by any supplier who satisfies the requisite qualifications. The Special Procedures Cabinet Order and the Special Procedures Ministerial Ordinance are limited in scope to procurement contracts to movable property having a provisional value of not less than 29 million yen. The chief of each ministry or agency is charged with the management of all business matters concerning obligations and disbursements within its jurisdiction. The Accounting Cabinet Order provides several grounds for disqualification of certain suppliers seeking to participate in open tendering procedures. Key disqualifying acts include the intentional construction or production of poor-quality goods.