JTPP
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Contact
Finding your way in Japanese
Public Procurement
Japan Tax and Public
Procurement Helpdesk
Lyckle Griek
www.EUbusinessinJapan.eu
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JTPP
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Contact
• In this presentation…
– Supplier Qualifications
– Types of tenders
– Where to find information on tenders
– The various steps in the tender process
– Success strategies
– Peculiarities of the Japanese PP Market
– Support available from JTPP
www.EUbusinessinJapan.eu
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Supplier Qualification
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• Only qualified suppliers can participate in
tenders in Japan
• Three types:
– Unified Supplier Qualification
(touitsu shikaku shinsei)
– Qualifications for public works’ construction
and design (“keishin”)
– Regional and local qualifications
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Supplier Qualification
Unified Supplier Qualification
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• Scope:
– National government and affiliated organisations
– Purchase of goods and services only
• Validity:
– max. 3 years
• No automatic renewal
• Application is free
• Application is entirely in Japanese
www.EUbusinessinJapan.eu
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Supplier Qualification
Unified Supplier Qualification
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• Application possible at all participating
organisations
• Application will take a couple of weeks
Necessary documents
• Company registration, fiscal and financial
documentation
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Supplier Qualification
Unified Supplier Qualification
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Classification
• Evaluation results in a classification from A to D
Manufacturing
Classification
Min
Max
A (> 90 points)
¥30 mln
B (80-89 points)
¥20 mln
¥30 mln
C (55-80 points)
¥4 mln
¥20 mln
D (< 55 points)
¥4 mln
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Supplier Qualification
Unified Supplier Qualification
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Contact
Classification
• Evaluation results in a classification from A to D
Sales of products or services
Classification
Min
Max
A (> 90 points)
¥30 mln
B (80-89 points)
¥15 mln
¥30 mln
C (55-80 points)
¥3 mln
¥15 mln
D (< 55 points)
¥3 mln
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Supplier Qualification
Qualifications for public works’ construction & design
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• Scope:
– Limited to one organisation
– Design and construction of public works
• Validity:
– 1 year and 7 months, in practice means you will have
to renew application every year
• Costs
– Keishin-part is done by third party companies
• Process entirely in Japanese
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Supplier Qualification
Regional & Local Qualifications
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Structure similar to national one, but in differences in some
details
• Scope:
– Limited to one organisation each
– Also distinction between goods and services and construction
related tenders
• Validity:
– Usually 2 years
• Usually free of charge
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Types of tenders
Main procedures
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Type
Occurrence
Tender size
Open, Competitive
Common
Any
Selective, designated
Rare
Any
Limited (Single)
Frequent
Any
Open Counter (Invoice)
Common
Small
Reverse (Dutch) Auction
Rare
Any
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Types of tenders
Public Works’ procedures
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Type
Open, Competitive
- Implementation Plan Evaluation Type
Selective, designated
- Public Invitation designated competitive bidding
- Project Interest Registration designated competitive bidding
- Other types:
- Technical Proposal Integrated Evaluation System
- Design-build bidding system
- Value-Engineering
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WTO
Agreement on Public Procurement
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Contact
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WTO
Agreement on Public Procurement
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Contact
• WTO Thresholds
• Longer period
between invitation to
tender and
submission deadline
• Possibility for redress
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Tender information
Tender information portals
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• Notices are published in Kanpo
• If WTO-tender, English summary
• English language portal sites:
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JETRO
www.EUbusinessinJapan.eu
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Tender information
Tender information portals
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•
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Contact
Notices are published in Kanpo
If WTO-tender, English summary
English language portal sites:
•
•
JETRO
METI Government Procurement
Information Website
www.EUbusinessinJapan.eu
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Tender information
Tender information portals
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•
•
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Contact
Notices are published in Kanpo
If WTO-tender, English summary
English language portal sites:
•
•
•
•
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JETRO
METI Government Procurement
Information Website
Chotatsujoho website
www.EUbusinessinJapan.eu
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GEPS:
Japanese government run public procurement portal
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Tender process itself
Tender call
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6 SUMMARY (1) OFFICIAL IN CHARGE OF DISBURSEMENT OF THE PROCURING ENTITY : KATSUMI OKABE
VICE-DIRECTOR OF GENERAL AFFAIRS DEPARTMENT,KANTO LOCAL FINANCE BUREAU (2) CLASSIFICATION
OF THE PRODUCTS TO BE PROCURED : 21 (3) NATURE AND QUANTITY OF THE PRODUCTS TO BE
PURCHASED : HYGIENE CLEANING PRODUCTS. (4) DELIVERY PERIOD : FROM APRIL 1, 2015 THROUGH
MARCH 31, 2016. (5) DELIVERY PLACE : REFER TOTHE TENDER EXPLANATION. (6) QUALIFICATIONS FOR
PARTICIPATING IN THE TENDERING PROCEDURES : SUPPLIERS ELIGIBLE FOR PARTICIPATING IN THE
PROPOSED TENDER ARE THOSE WHO SHALL : (A1) NOT COME UNDER ARTICLE 70 OF THE CABINET ORDER
CONCERNING THE BUDGET, AUDITING AND ACCOUNTING. FURTHERMORE, MINORS, PERSON UNDER
CONSERVATORSHIP ORPERS ON UNDER ASSISTANCE THAT OBTAINED THE CONSENT NECESSARY
FORCONCLUDING A CONTRACT MAY BE APPLICABLE UNDER CASES OF SPECIAL REASONS WITHIN THE
SAID CLAUSE. (A2) NOT COME UNDER ARTICLE 71 OFTHE CABINET ORDER CONCERNING THE BUDGET,
AUDITING AND ACCOUNTING.(A3) HAVE GRADE "A, B OR C" IN SELLING, IN TERMS OF QUALIFICATION FOR
PARTICIPATING IN TENDERS BY THE ORGANIZATIONS IN THE KANTOKOUSHINETSU AREA RELATED TO THE
MINISTRY OF FINANCE (SINGLEQUALIFICATION FOR EVERY MINISTRY AND AGENCY) IN THE FISCAL
YEARS2013, 2014 AND 2015. (A4) NOT THOSE WHO ARE JUDGED TO BE INAPPROPRIATE AS THE OTHER
PARTY TO A CONTRACT ON ACCOUNT OF HAVING VIOLATED ANY OF THE CLAUSES OF CONTRACT AND
ILLEGAL OR UNFAIR ACT PREVIOUSLY MADE WITH AN OFFICIAL IN CHARGE OF ANY OF THE RELEVANT
LOCAL BUREAUS, OR BRANCH BUREAUS, OR DIVISIONS, OR OFFICES. (A5)HAVE NOT RECEIVED
SUSPENSION OF DESIGNATED CONTRACTOR STATUS, ETC.FROM ANY MINISTRY OR AGENCY (INCLUDING
PERSON SPECIALLY QUALIFIED BY OFFICIALS INCHARGE OF DISBURSEMENT OF THE PROCURING ENTITY).
(A6)AN ELIGIBLE PERSON IS A PERSON WHOSE BUSINESS CONDITION AND CREDITARE DEEMED NOT TO
BE A SEVER DEGRADATION, AND WHO ISSURE TOIMPLEMENT THE CONTRACT. (7) TIME LIMIT FOR TENDER :
5 : 00 P.M.MARCH 19, 2015 (8) CONTACT POINT FOR THE NOTICE : AKIRA MATSUSHITA,ACCOUNTING
SECTION, GENERAL AFFAIRS DIVISION, KANTO LOCAL FINANCEBUREAU, 1-1 SHINTOSHIN, CHUO-KU,
SAITAMA-CITY, SAITAMA 330-9716,JAPAN TEL 048-600-1086 (9) DETAILS AND OTHERS : AS IN THE
TENDERDOCUMENTATION.
www.EUbusinessinJapan.eu
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Tender process itself
Tender call
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Contact
6 SUMMARY (1) OFFICIAL IN CHARGE OF DISBURSEMENT OF THE PROCURING ENTITY : KATSUMI OKABE
VICE-DIRECTOR OF GENERAL AFFAIRS DEPARTMENT,KANTO LOCAL FINANCE BUREAU (2) CLASSIFICATION
OF THE PRODUCTS TO BE PROCURED : 21 (3) NATURE AND QUANTITY OF THE PRODUCTS TO BE
: HYGIENE CLEANING PRODUCTS
PURCHASED
. (4) DELIVERY PERIOD :
FROM APRIL 1, 2015 THROUGH MARCH 31, 2016. (5) DELIVERY PLACE : REFER TOTHE TENDER
EXPLANATION. (6) QUALIFICATIONS FOR PARTICIPATING IN THE TENDERING PROCEDURES : SUPPLIERS
ELIGIBLE FOR PARTICIPATING IN THE PROPOSED TENDER ARE THOSE WHO SHALL : (A1) NOT COME UNDER
ARTICLE 70 OF THE CABINET ORDER CONCERNING THE BUDGET, AUDITING AND ACCOUNTING.
FURTHERMORE, MINORS, PERSON UNDER CONSERVATORSHIP ORPERS ON UNDER ASSISTANCE THAT
OBTAINED THE CONSENT NECESSARY FORCONCLUDING A CONTRACT MAY BE APPLICABLE UNDER CASES
OF SPECIAL REASONS WITHIN THE SAID CLAUSE. (A2) NOT COME UNDER ARTICLE 71 OFTHE CABINET
ORDER CONCERNING THE BUDGET, AUDITING AND ACCOUNTING.(A3) HAVE GRADE "A, B OR C" IN SELLING,
IN TERMS OF QUALIFICATION FOR PARTICIPATING IN TENDERS BY THE ORGANIZATIONS IN THE
KANTOKOUSHINETSU AREA RELATED TO THE MINISTRY OF FINANCE (SINGLEQUALIFICATION FOR EVERY
MINISTRY AND AGENCY) IN THE FISCAL YEARS2013, 2014 AND 2015. (A4) NOT THOSE WHO ARE JUDGED TO
BE INAPPROPRIATE AS THE OTHER PARTY TO A CONTRACT ON ACCOUNT OF HAVING VIOLATED ANY OF
THE CLAUSES OF CONTRACT AND ILLEGAL OR UNFAIR ACT PREVIOUSLY MADE WITH AN OFFICIAL IN
CHARGE OF ANY OF THE RELEVANT LOCAL BUREAUS, OR BRANCH BUREAUS, OR DIVISIONS, OR OFFICES.
(A5)HAVE NOT RECEIVED SUSPENSION OF DESIGNATED CONTRACTOR STATUS, ETC.FROM ANY MINISTRY
OR AGENCY (INCLUDING PERSON SPECIALLY QUALIFIED BY OFFICIALS INCHARGE OF DISBURSEMENT OF
THE PROCURING ENTITY). (A6)AN ELIGIBLE PERSON IS A PERSON WHOSE BUSINESS CONDITION AND
CREDITARE DEEMED NOT TO BE A SEVER DEGRADATION, AND WHO ISSURE TOIMPLEMENT THE
CONTRACT. (7) TIME LIMIT FOR TENDER : 5 : 00 P.M.MARCH 19, 2015 (8) CONTACT POINT FOR THE NOTICE :
AKIRA MATSUSHITA,ACCOUNTING SECTION, GENERAL AFFAIRS DIVISION, KANTO LOCAL FINANCEBUREAU,
1-1 SHINTOSHIN, CHUO-KU, SAITAMA-CITY, SAITAMA 330-9716,JAPAN TEL 048-600-1086 (9) DETAILS AND
OTHERS : AS IN THE TENDERDOCUMENTATION.
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www.EUbusinessinJapan.eu
Tender process itself
Tender call
Topic 1
Topic 2
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Contact
6 SUMMARY (1) OFFICIAL IN CHARGE OF DISBURSEMENT OF THE PROCURING ENTITY : KATSUMI OKABE
VICE-DIRECTOR OF GENERAL AFFAIRS DEPARTMENT,KANTO LOCAL FINANCE BUREAU (2) CLASSIFICATION
OF THE PRODUCTS TO BE PROCURED : 21 (3) NATURE AND QUANTITY OF THE PRODUCTS TO BE
PURCHASED : HYGIENE CLEANING PRODUCTS. (4) DELIVERY PERIOD : FROM APRIL 1, 2015 THROUGH
MARCH 31, 2016. (5) DELIVERY PLACE : REFER TOTHE TENDER EXPLANATION. (6) QUALIFICATIONS FOR
PARTICIPATING IN THE TENDERING PROCEDURES : SUPPLIERS ELIGIBLE FOR PARTICIPATING IN THE
PROPOSED TENDER ARE THOSE WHO SHALL : (A1) NOT COME UNDER ARTICLE 70 OF THE CABINET ORDER
CONCERNING THE BUDGET, AUDITING AND ACCOUNTING. FURTHERMORE, MINORS, PERSON UNDER
CONSERVATORSHIP ORPERS ON UNDER ASSISTANCE THAT OBTAINED THE CONSENT NECESSARY
FORCONCLUDING A CONTRACT MAY BE APPLICABLE UNDER CASES OF SPECIAL REASONS WITHIN THE
SAID CLAUSE. (A2) NOT COME UNDER ARTICLE 71 OFTHE CABINET ORDER CONCERNING THE BUDGET,
AUDITING AND ACCOUNTING.(A3)
HAVE GRADE "A, B OR C" IN SELLING, IN TERMS
OF QUALIFICATION FOR PARTICIPATING IN TENDERS BY THE
ORGANIZATIONS IN THE KANTOKOUSHINETSU AREA RELATED TO THE
MINISTRY OF FINANCE (SINGLEQUALIFICATION FOR EVERY MINISTRY
AND AGENCY) IN THE FISCAL YEARS2013, 2014 AND 2015. (A4) NOT THOSE WHO ARE JUDGED TO BE
INAPPROPRIATE AS THE OTHER PARTY TO A CONTRACT ON ACCOUNT OF HAVING VIOLATED ANY OF THE
CLAUSES OF CONTRACT AND ILLEGAL OR UNFAIR ACT PREVIOUSLY MADE WITH AN OFFICIAL IN CHARGE
OF ANY OF THE RELEVANT LOCAL BUREAUS, OR BRANCH BUREAUS, OR DIVISIONS, OR OFFICES. (A5)HAVE
NOT RECEIVED SUSPENSION OF DESIGNATED CONTRACTOR STATUS, ETC.FROM ANY MINISTRY OR
AGENCY (INCLUDING PERSON SPECIALLY QUALIFIED BY OFFICIALS INCHARGE OF DISBURSEMENT OF THE
PROCURING ENTITY). (A6)AN ELIGIBLE PERSON IS A PERSON WHOSE BUSINESS CONDITION AND
CREDITARE DEEMED NOT TO BE A SEVER DEGRADATION, AND WHO ISSURE TOIMPLEMENT THE
CONTRACT. (7) TIME LIMIT FOR TENDER : 5 : 00 P.M.MARCH 19, 2015 (8) CONTACT POINT FOR THE NOTICE :
AKIRA MATSUSHITA,ACCOUNTING SECTION, GENERAL AFFAIRS DIVISION, KANTO LOCAL FINANCEBUREAU,24
1-1 SHINTOSHIN, CHUO-KU, SAITAMA-CITY, SAITAMA 330-9716,JAPAN TEL 048-600-1086 (9) DETAILS AND
www.EUbusinessinJapan.eu
Tender process itself
Tender call
Topic 1
Topic 2
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Topic 4
Contact
6 SUMMARY (1) OFFICIAL IN CHARGE OF DISBURSEMENT OF THE PROCURING ENTITY : KATSUMI OKABE
VICE-DIRECTOR OF GENERAL AFFAIRS DEPARTMENT,KANTO LOCAL FINANCE BUREAU (2) CLASSIFICATION
OF THE PRODUCTS TO BE PROCURED : 21 (3) NATURE AND QUANTITY OF THE PRODUCTS TO BE
PURCHASED : HYGIENE CLEANING PRODUCTS. (4) DELIVERY PERIOD : FROM APRIL 1, 2015 THROUGH
MARCH 31, 2016. (5) DELIVERY PLACE : REFER TOTHE TENDER EXPLANATION. (6) QUALIFICATIONS FOR
PARTICIPATING IN THE TENDERING PROCEDURES : SUPPLIERS ELIGIBLE FOR PARTICIPATING IN THE
PROPOSED TENDER ARE THOSE WHO SHALL : (A1) NOT COME UNDER ARTICLE 70 OF THE CABINET ORDER
CONCERNING THE BUDGET, AUDITING AND ACCOUNTING. FURTHERMORE, MINORS, PERSON UNDER
CONSERVATORSHIP ORPERS ON UNDER ASSISTANCE THAT OBTAINED THE CONSENT NECESSARY
FORCONCLUDING A CONTRACT MAY BE APPLICABLE UNDER CASES OF SPECIAL REASONS WITHIN THE
SAID CLAUSE. (A2) NOT COME UNDER ARTICLE 71 OFTHE CABINET ORDER CONCERNING THE BUDGET,
AUDITING AND ACCOUNTING.(A3) HAVE GRADE "A, B OR C" IN SELLING, IN TERMS OF QUALIFICATION FOR
PARTICIPATING IN TENDERS BY THE ORGANIZATIONS IN THE KANTOKOUSHINETSU AREA RELATED TO
THE MINISTRY OF FINANCE (SINGLEQUALIFICATION FOR EVERY MINISTRY AND AGENCY) IN THE FISCAL
YEARS2013, 2014 AND 2015. (A4) NOT THOSE WHO ARE JUDGED TO BE INAPPROPRIATE AS THE OTHER
PARTY TO A CONTRACT ON ACCOUNT OF HAVING VIOLATED ANY OF THE CLAUSES OF CONTRACT AND
ILLEGAL OR UNFAIR ACT PREVIOUSLY MADE WITH AN OFFICIAL IN CHARGE OF ANY OF THE RELEVANT
LOCAL BUREAUS, OR BRANCH BUREAUS, OR DIVISIONS, OR OFFICES. (A5)HAVE NOT RECEIVED
SUSPENSION OF DESIGNATED CONTRACTOR STATUS, ETC.FROM ANY MINISTRY OR AGENCY (INCLUDING
PERSON SPECIALLY QUALIFIED BY OFFICIALS INCHARGE OF DISBURSEMENT OF THE PROCURING ENTITY).
(A6)AN ELIGIBLE PERSON IS A PERSON WHOSE BUSINESS CONDITION AND CREDITARE DEEMED NOT TO
BE A SEVER DEGRADATION, AND WHO ISSURE TOIMPLEMENT THE CONTRACT. (7
) TIME LIMIT
FOR TENDER : 5 : 00 P.M.MARCH 19, 2015 (8) CONTACT POINT FOR THE NOTICE :
AKIRA MATSUSHITA,ACCOUNTING SECTION, GENERAL AFFAIRS DIVISION, KANTO LOCAL FINANCEBUREAU,
1-1 SHINTOSHIN, CHUO-KU, SAITAMA-CITY, SAITAMA 330-9716,JAPAN TEL 048-600-1086 (9) DETAILS AND
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OTHERS : AS IN THE TENDERDOCUMENTATION.
www.EUbusinessinJapan.eu
Tender process itself
Tender call
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Contact
REFER TOTHE TENDER EXPLANATION. (6) QUALIFICATIONS FOR PARTICIPATING IN THE TENDERING
PROCEDURES : SUPPLIERS ELIGIBLE FOR PARTICIPATING IN THE PROPOSED TENDER ARE THOSE WHO
SHALL : (A1) NOT COME UNDER ARTICLE 70 OF THE CABINET ORDER CONCERNING THE BUDGET, AUDITING
AND ACCOUNTING. FURTHERMORE, MINORS, PERSON UNDER CONSERVATORSHIP ORPERS ON UNDER
ASSISTANCE THAT OBTAINED THE CONSENT NECESSARY FORCONCLUDING A CONTRACT MAY BE
APPLICABLE UNDER CASES OF SPECIAL REASONS WITHIN THE SAID CLAUSE. (A2) NOT COME UNDER
ARTICLE 71 OFTHE CABINET ORDER CONCERNING THE BUDGET, AUDITING AND ACCOUNTING.(A3) HAVE
GRADE "A, B OR C" IN SELLING, IN TERMS OF QUALIFICATION FOR PARTICIPATING IN TENDERS BY THE
ORGANIZATIONS IN THE KANTOKOUSHINETSU AREA RELATED TO THE MINISTRY OF FINANCE
(SINGLEQUALIFICATION FOR EVERY MINISTRY AND AGENCY) IN THE FISCAL YEARS2013, 2014 AND 2015.
(A4) NOT THOSE WHO ARE JUDGED TO BE INAPPROPRIATE AS THE OTHER PARTY TO A CONTRACT ON
ACCOUNT OF HAVING VIOLATED ANY OF THE CLAUSES OF CONTRACT AND ILLEGAL OR UNFAIR ACT
PREVIOUSLY MADE WITH AN OFFICIAL IN CHARGE OF ANY OF THE RELEVANT LOCAL BUREAUS, OR
BRANCH BUREAUS, OR DIVISIONS, OR OFFICES. (A5)HAVE NOT RECEIVED SUSPENSION OF DESIGNATED
CONTRACTOR STATUS, ETC.FROM ANY MINISTRY OR AGENCY (INCLUDING PERSON SPECIALLY QUALIFIED
BY OFFICIALS INCHARGE OF DISBURSEMENT OF THE PROCURING ENTITY). (A6)AN ELIGIBLE PERSON IS A
PERSON WHOSE BUSINESS CONDITION AND CREDITARE DEEMED NOT TO BE A SEVER DEGRADATION, AND
WHO ISSURE TOIMPLEMENT THE CONTRACT. (7) TIME LIMIT FOR TENDER : 5 : 00 P.M.MARCH 19, 2015 (8)
CONTACT POINT FOR THE NOTICE : AKIRA
MATSUSHITA,ACCOUNTING SECTION, GENERAL AFFAIRS
DIVISION, KANTO LOCAL FINANCEBUREAU, 1-1 SHINTOSHIN,
CHUO-KU, SAITAMA-CITY, SAITAMA 330-9716,JAPAN TEL 048600-1086 (9) DETAILS AND OTHERS : AS IN THE
www.EUbusinessinJapan.eu
TENDERDOCUMENTATION.
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Tender process itself
Obtaining tender details
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Contact
• Calling contact points
• Procuring entity’ websites
• Explanatory meeting
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Tender process itself
Tender documentation
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Contact
• The text of the call
• Tender specifications
• Qualifications related to business and technical
capabilities
• Obligations of the tenderers
• Criteria for awarding the contract
• Basic contract provisions/Draft contract
• Guidelines for drafting the bidding documents
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Tender process
Subsmission, opening and contracting
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• Submission and opening of tenders
– At designated location
• Contracting
– Lot of variation
– Negotation of terms very difficult
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Tender Evaluation
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LOWEST PRICE!!!
• Estimated price
– Lowest bid should not exceed the estimated price
– If lower, you are invited to place a new lower bid
• If no successful bidder after few rounds
– Negotations with bidder or
– Repeating the entire procedure
www.EUbusinessinJapan.eu
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Tender evaluation
Topic 1
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Contact
• Overall Greatest Value Method (OGV)
– Combination of price and technical quality of
the bid
• Common in construction and design
• Mandatory when procuring (WTO tenders)
– Computer products and services
– Telecommunications
– Medical Technology
• Also seen for survey-research, advertising and
R&D projects
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Success strategies
Tips&Tricks
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• Japanese language capability
– Ad hoc (translators)
– Local representative
• Monitor requests for submission of materials,
and requests for comments
• Annual procurement plans (national)
• Lobbying
• Be aware of different mind-set
• Be punctual and precise at all times.
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Peculiarities
of the Japanese Public Procurement Market
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Contact
• Only a very small percentage of Japanese
business take part in PP
• Companies tend to focus on the same tenders
• Busiest periods: April-May and JanuaryFebruary
• Focus on lowest price
• Large diversity in procedures across
organisations
• Big spenders (WTO: goods and services)
– Japan Post, National University Organisation, Health
www.EUbusinessinJapan.eu 33
& Welfare Ministry
Topic 1
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Contact
www.EUbusinessinJapan.eu
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JTPP Helpdesk Support
Topic 1
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Contact
• Website and Twitter-service
• Unified Supplier Qualification Support
Service
• Public Procurement Market Quick Scan
• Ask-the-Expert
• Tender Monitoring service
• Access to third-party specialists
– Translators, administrative lawyers
www.EUbusinessinJapan.eu
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Q&A
Topic 1
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Contact
• Your
–Questions
–Feedback
–Suggestions
www.EUbusinessinJapan.eu
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Topic Title
Topic 1
Topic 2
Topic 3
Topic 4
Contact
Japan Tax & Public Procurement
Helpdesk (JTPP)
Find us at
www.Eubusinessinjapan.eu
Twitter: @JTPPHELPDESK
www.EUbusinessinJapan.eu
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