Session 4 Japan Final 231111

8/3/2019 Session 4 Japan Final 231111

1/35

Public Procurement Systemin JAPAN

23 November 2011

Yasushi Kawanai

Japan Construction Information Center

Japan Construction Information Center


2/35

Japanese e-bidding System for publicprocurement

2 Stories, for Central government and forLocal governments

The original system was developed and

carried out from 2001 in the public worksalready. And now over 50,000 tenders areexecuted in a year by this system in manygovernment organizations.

As for the local, e-bidding system wasadopted at 47 all prefectural localgovernments already and carried out from2004 in a big projects.

Centralgovernment

Localgovernment

and


3/35

JACIC isMy organization was a government agency

controlled by MLIT (Ministry of Land,Infrastructure, Transportation and Tourism )todevelop the 2 bidding systems. (It is now akind of non-profit organization.)

MLIT ordered JACIC to develop the e-biddingsystems in 1999 and JACIC established aconsortium to develop the system. Governmentbudget was about half then. Other half wasfrom system vender companies and others.

On the other hand, the system for the localgovernment was developed by JACIC for theown business under the MLITs supporting.

MLIT

JACIC


4/35

1.National Government System


5/35

Development by a Consortium

MLIT

ConsortiumSystem specifications

Provision conditions

Public purchasers including ministries, prefectural authorities,local government offices, public corporations, etc.

Development

IT Vendors

SellNeeds

Customization

e-TenderingCore

System

e-TenderingSystemby MLIT

Free of charge

JACIC & SCOPE

Know-howpersonnel

operating funds


6/35

After the development,Nov. 13 2001 - First Electronic Tender Opening


7/35

e-Bidding for National Projects

(MLIT) year by year FY2001 about 100 Tenders FY2002 about 2,000 Jobs FY2003 All Jobs by MLIT

(about 30,000)

Now over 50,000 Tenders


8/35

Disclosure ofbidding results

Reading andselection

Qualification

examination documents

Application forqualification examination

Bidding

Notice of successful bidding

Notice of qualification check

Bidding announcement

Qualification check

Distribution ofbidding documents

Browsing

e-BiddingPrice settingPlan and estimate forimplementation

Preparation of detailedwork cost estimatesheet and biddocuments

PPI

Bid opening

E-Bidding business flow (directly)

PPI

Following the e-contract


9/35

PPI web site (free site)

But tendering process is not changed, just tranfered intoInformation Technology.


10/35

Some other Systems supported this e-procurement

/PPI ; public procurement Information System(web site)

/Security IC card systems. (for bidders) /Accident support stuff. /Designe and Construction Record

Imformation Systems (for P.Q.)


11/35

Supported Field

Construction

Service(Consulting service

for construction)

Goods&

Others service

Open bidding

Publicly-invited, selective bidding Selective bidding

Work-specified selective bidding

Optional contract

Publicly-invited competitive bidding

Simple public invitation type selective bidding

Selective bidding

Publicly-invited proposal

Simple public invitation type designated proposal

Standard proposal Optional contract

Open competitive bidding

Designated competitive bidding

Optional contract


12/35

2.About Local System (for the 2 nd stage)

=[Core System standard] by JACICBased on the first National System


13/35

e-Tendering Core System

The core part of the e-Tenderingsoftware, which has highflexibility and can be applied tomultiple public purchasers.

e-Tendering System

Core


14/35

Standardization

Purchaser

Tenderer

Tenderer

Tenderer

Tenderer

Tenderer

Purchaser Purchaser Purchaser Purchaser

Core Core Core Core Core

Common Interface

Electronic Tendering Systems

Standard Systems


15/35

Core system structure

e-bidding core system

Core Section Customizable Section

Common bid functions

Non customizable

Bidding specific Program ComponentsSecurity Function PKI etc.

User can customize

Screen DesignForms Design etc.

The basic functions required for e-Bidding are implemented in theCore Section.

The Customizable Section allows screen design changes and free

modifications to linkage function with related systems.


16/35

Public agencys e -bidding system

Multi-platform

e-bidding core system

Java Execution Environment

OS: Operating Systems(UNIX, Windows, Linux)

Multi-platform support is provided for compatibility with multipleoperating systems (UNIX, Windows, Linux).


17/35

Specification only(Jacic business model)

There are large venders in JAPAN for the e-bidding system from that time.

/ HITACHI, /MITSUBISHI, /TOSHIBA,/NEC (Nippon Electric Company) etc.


18/35

Local Government now

Purchase & UnderprocedurePrefecture 46/47Ordinance-designated city

17/19City etc. 12

The standard of e-bidding system is nowalmost one standard in the field of publicprocurement.


19/35

Organizations introducing

e-Bidding Core System nown Central Government Organs (8)

Ministry of Land, Infrastructure, and Transport

Ministry of Finance Ministry of Justice Ministry of Education, Culture, Sports, Science andTechnology Ministry of Health, Labour and Welfare Ministry of Agriculture, Forestry and Fisheries Ministry of Defense Cabinet Office (Okinawa


20/35

Spread of the core system

2011.9.1

Group Core System Users Group total

Governments

Public corporations

Prefectures

Government-decreed cities

Municipalities

Total

Others


21/35

JACIC business for the core systemuser license)

Installationthe core system

Shared system

Prefectures and municipalities

Between municipalities

Individual system

Self development

ASP Application service provider

Self development

ASP


22/35

This standard is authorized on CEFACTUN/ECE

ATG Applied Technologies Group

ICG Information Content Management Group

TBG International Trade and Business

Processes Group

TMG Techniques and Methodologies Group

LG Legal Group

TBG1 Supply Chain Management

TGB2 Digital PapersTBG3 TransportationTBG4 CustomsTBG5 Finance

TBG6

TBG7 StatisticsTBG8 InsuranceTBG9 Travel, Tourism & LeisureTBG10 Healthcare

TBG11 Social Security, Employment & SafetyTBG12 Accounting & AuditingTBG13 Environmental ManagementTBG14 Business Process AnalysisTBG15 International Trade FacilitationTBG16 EDIFACT Entry PointTBG17 Harmonization & DocumentationTBG18 AgriculturalTBG19 eGovernment

TBG

UN/CEFACT TBG6 Architecture,Engineering & Construction

e-Tendering Project


23/35


24/35

I would like to request about the Handbook in this

conferencesto consider the tendering process which isauthorized in this UN/CEFACT, that is BRS

(Busyness Requirement Specification) &, RSM( Requirement Specification Mapping.)

I think it is not difficult to follow this standards

because it is very basic specification.


25/35

Important points for the starting of e-bidding systems.

1.To make the tender process to be clearto meet the domestic conditions in uniformedopinions.

2. Strong leader sip of government3.There needs promoting bodies. Committee or some

agent, not government bodies.

4.Introduction of step by step, from model projects.5. To borrow the power of the foreign countries,

system venders and ADB.


26/35

What JACIC could help it for ?

JACIC is not consultant group for the foreigncountries.We cannot help the starting countries directly.It is not our organizations duty.

If a starting country would like Japan to help it, please ask theofficial body, through the Ministry of Foreign Affaires of Japan.

http://www.mofa.go.jp/index.html

If the Japanese government ask us to help you, we could dosomething, for example, to receive the delegation of reserch.
http://www.mofa.go.jp/index.htmlhttp://www.mofa.go.jp/index.html


27/35

Thank You for your Attention !


28/35

Japanese Back ground


29/35

GDP vs Invest. in Const.

0

100

200

300

400

500

600

89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05

year

t r i l l i

o n

Y e n

GDP

invest. in const.


30/35

Source: Homepages of ministries

Ministry of Land,Infrastructure andTransport (MLIT)

Ministry of Agriculture,Forestry and Fisheries and

other ministries \0.9 Trillion

\4.9 Trillion

Grand Total \5.8 Trillion

(National Budget \60 Trillion)

FY 2010 National Budget for Public Works inJapan (Not including supplementary budgets)

Public Works of Japan


31/35

Gross Construction Investment , Number of Employees in Construction Industry ,Number of Licensed Construction Contractors

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

90.0

'76 '78 '80 '82 '84 '86 '88 '90 '92 '94 '96 '98 '00 '02 '04

(trillion yen)

0

100

200

300

400

500

600

700

800

900

Private Construction Investment (trillion yen)

Government Construction Investment (tril lion yen)

Number of Licensed Constructi on Contractors (1,000 number)

Number of Employ ees in Construction Industr y (10,000 Person)

(1,000 number ,

10,000 Person)

(fiscalyear)

peak of construction investment ('92)

8 4 . 0

5 8 45 9

5 1 . 9

2 0 . 4

3 1 . 5

6 8 5

6 0 1

3 5 , 2

5 5 . 7

peak of private construction

investment ('90)

peak of government construction

investment ('95)

peak of numb er of employee Avera ge

of ' 97 )

peak of mumber of l icenced

construction contractors

('00.3.31)

39.0

36.9

38.2

5.3

Comparison with the 199 2 fiscalyear (peak of constru ctioninvestment)


32/35

e-Japan Strategy in 2000 and CALS/EC

e-Japan StrategyJan 2001

e-Japan Strategy IIJuly 2003

e-Japan Strategy II Accelerating Package

Feb 2004

IT Basic LawIT Strategic Head Office(Chair: Prime Minister)

2001 2002 2003 2004 2005

e-Japan PriorityPlan (Mar 2001)

e-Japan Priority Plan 2004(June 2004)

e-Japan Priority Plan2003 (Aug 2003)

e-Japan PriorityPlan 2002(Jun 2002)

Preparation ofInfrastructure

Focusing on ICT Use(Leading 7 areas)

Clarify Priority Measuresto reach ICT Country

A: Global StrategyB: SecurityC: ContentsD: ICT DeregulationE: AssessmentF: e-Gov & e-Rural Gov

To overcome issues towardsthe Highest-level ICT countryby 2005

Courtesy of Mr. Ito (JASTRO)


33/35

CALS/ECas a part of e-Government Strategy

Central Government

Ministry of Land, Infrastructure andTransport (MLIT)

Announced Millenium Project (October 1999)Established IT Strategy Headquarters in the Cabinet

(July 2000)

Announced e -Japan Strategy (January 2001)Announced e -Japan Strategy (July 2003)

Announced Construction CALS Implementation Vision (April 1996)

Established CALS/EC Promotion Headquarters (May 2001) Revised CALS/EC Action Program (March 2002)


34/35

Construction CALS/EC in Japansurveydesign BiddingContract build O/M

Phase 1 96- 98

Standardizationfor document &Forms

Start e-bidding Digitized-photos -

Phase 2 99-01

Start e-delivery e-bidding Start e-delivery (e-note)

Phase 3 02- 04

full e-delivery full e-bidding,Down loading of documents anddesigne-contract

full e-deliveryInformation sharing

(opticalfiber usingGIS)


35/35

Yearly Targets for Local Promotion

Documents

Session 4 Japan Final 231111