4. Others


(1) System of complaint review procedures for government procurement grievances

a. The system under the former Agreement on Government Procurement

Various regulations were stipulated under non-discrimination and national treatment policies, etc., in the GATT Agreement on Government Procurement which came into effect in 1981. However no regulations were stipulated in regard to complaint review procedures.

On the other hand, regulations relating to a system of complaint review procedures have been established in each voluntary measure adopted by the Action Program Committee, and a complaint review procedure is implemented based on these regulations.

b. The system under the new WTO Agreement on Government Procurement (reference material I - 5)

The WTO Agreement on Government Procurement came into effect in 1996 at the Uruguay Round of GATT. In addition to the regulations regarding non-discrimination and national treatment policies found in the former Agreement, in regard to complaint review, Article 20: Challenge Procedures, was established.

It thus became necessary for the Government of Japan to develop a system, incorporating the system for complaint review procedures which had been in place until that point, in order to carry out its duties according to the new Agreement, in the period before the new Agreement on Government Procurement came into effect. For this purpose, the Office of Government Procurement Review was established following a Cabinet decision, "The Establishment of Headquarters of Government Procurement Review" on 1 December 1995. It was determined that the Headquarters would set up a Government Procurement Review Board to handle complaints, and the responsibility for the complaint review procedure based on the voluntary measures decided by the Action Program Committee was transferred to a new organization.
In conjunction with the reorganization of the central ministries on January 6, 2001, this office is established in the Cabinet Office.

c. Results on complaints in 2000

Case No.2

1. Date of complaint submission: July 12, 2000
2. Complainant: Motorola Japan Ltd.
3. Name of procuring entity in the complaint: East Japan Railway Company
4. Name of procured goods/services: IC card system for Automatic Fare Collection System
5. Outline of the status of complaint processing:
On October 3, 2000, the Government Procurement Review Board issued a report stating "the Board has been judged that the tendering procedures do not violate the regulations of the Agreement and the Measures." which was delivered to the complainant, Motorola Japan Ltd., the procuring entity, East Japan Railway Company, and the participant, Sony Corporation.

(2) Construction sector

While the bidding and contracting procedures for public works are not covered by the Action Program Committee, the "Major Projects Arrangements" and the "Additional Measures of the Government of Japan on Major Projects Arrangements" were adopted by the Cabinet, in May 1987 and in July 1991, respectively, both of which were intended to increase access to large scale public works projects. Furthermore, in January 1994, the "Action Plan on Reform of the Bidding and Contracting Procedures for Public Works," which included adoption of open and competitive tendering procedures for procurement with a value above a certain threshold, was adopted by the Cabinet. In order to improve the actual operation of the Action Plan, Operational Guidelines with Respect to the Action Plan on Reform of the Bidding and Contracting Procedures for Public Works were drafted in June 1996. (Administrative Vice Ministers' Conference).



Reference Material I-5

Entities Covered by the Voluntary Measures on Government Procurement

Entities covered by the Voluntary Measures (98)
Entities covered by the Agreement on Government Procurement (91) Entities only covered by the
"Computer Measures"(7)
Central Government Entities (21) Public Corporations (70)
House of Representatives
House of Councilors
Supreme Court
Board of Audit
Cabinet National Personnel Authority
Cabinet Office
Imperial Household Agency
National Public Safety Commission
(National Police Agency)
Defence Agency
Financial Services Agency
Ministry of Public Management,
Home Affairs, Posts and
Telecommunications
Ministry of Justice
Ministry of Foreign Affairs
Ministry of Finance
Ministry of Education, Culture,
Sports, Science and Technology
Ministry of Health, Labour and
Welfare
Ministry of Agriculture, Forestry
and Fisheries
Ministry of Economy, Trade and
Industry
Ministry of Land, Infrastructure
and Transport
Ministry of the Environment
Hokkaido Railway Company
East Japan Railway Company
West Japan Railway Company
Shikoku Railway Company
Kyushu Railway Company
Japan Freight Railway Company
Japan Tabacco Inc.
Nippon Telegraph and
Telephone Co.
National Life Finance Corporation
Housing Loan Corporation
Agriculture, Forestry and
Fisheries Finance Corporation
Japan Finance Corporation
for Small Business
Japan Finance Corporation
for Municipal Enterprises
Social Welfare and Medical
Service Corporation
Okinawa Development Finance
Corporation
Development Bank of Japan
Japan Bank for International
Cooperation
Water Resources Development
Public Corporation
New Tokyo International
Airport Authority
Japan Highway Public Corporation
Japan Environment Corporation
Japan International Cooperation
Agency
Pension Welfare Service
Public Corporation
Labour Welfare Corporation
Employment and Human
Resources Development
Japan Consumer Information
Center
Japan Science and Technology
Corporation
Japan Foundation
National Stadium and School
Health Center of Japan
University of the Air Foundation
Japan Racing Association
Japan External Trade
Organization
New Energy and Industrial
Technology Development
Organization
Japan Regional Development
Corporation
Japan National Oil Corporation
Metropolitan Expressway
Public Corporation
Urban Development Corporation
Japan Nuclear Cycle
Development Institute
Metal Mining Agency of Japan
Japan Small and Medium
Enterprise Corporation
Postal Life Insurance
Welfare Corporation
Organization for Workers
Retirement Allowance Mutual
Aid
Teito Rapid Transit Authority
Northern Territories Issue
Association
Japan Atomic Energy Research
Institute
The Pollution-related Health
Damage Compensation and
Prevention Association
Fund for the Promotion and
Development of the Amami
Islands
Japan Scholarship Foundation
Promotion and Mutual Aid
Corporation for Private
School of Japan
Social Insurance Medical Fee
Payment Fund
Association for Welfare of the
Mentally and Physically
Handicapped
Mutual Aid Association of
Agriculture, Forestry and
Fishery Corporation Personnel
Japan Keirin Association
Japan Motorcycle Racing
Organization
Japan Institute of Labour
Mutual Aid Fund for Official
Casualties and Retirement of
Volunteer Firemen
Japan Green Resources Corporation
Corporation for Advanced
Transport & Technology
Japan Railway Construction
Public Corporation
Hansin Expressway Public
Corporation
Honshu-Shikoku Bridge Authority
Agriculture and Livestock
Industries Corporation
RIKEN(The Institute of Physicaland
Chemical Research)
National Education Center
Japan Arts Council
Japan Society for the
Promotion of Science
National Association of Racing
Farmers' Pension Fund
Japan National Tourist
Organization
National Space Development
Agency of Japan
The Shoko Chukin Bank
Electric Power Development
Co., Ltd.
Kansai International Airport
Co., Ltd.
The Japan Shipbuilding
Industry Foundation
Japan Broadcasting
Corporation
Japan Worker's Housing
Association

"Computer Measures"= "Measures Related to Japanese Public Sector Procurement of Computer Products and Services"



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