The total value for government procurements of goods and services for 2001 was 1.0146 trillion yen, a decrease of 2.7% from the previous year.

Table 1: Total value and number of government procurement contracts

The ratios of open tendering contracts to single tendering contracts vary significantly according to whether the items procured were goods or services. In 2001 about 90% of the number of goods procurement was contracted through open tendering procedures. In contrast, in terms of service, more than 40 % of the number of and nearly 70 % of the total value of procurement were contracted through single tendering procedures.

Table 2: Breakdown of procurements by types of goods and services, and by contract type

In 2001, the open tendering keep occupying a large portion of the total, in terms of numbers of contracts, as well as on value basis. (About 80% on a number of contract base, and about 70% on a value base)

In 2001 the contracts through selective tendering are less than 1% of the total.

Of the reasons listed in the 15th Article of the WTO Agreement on Government Procurement as the conditions of single tendering procedure, the ones most often cited for the adoption of single tendering procedures were that " in the absence of tenders in response to an open or selective tendering," " a change of supplier would harm compatibility with already existing products or equipment," and that " when, for works of art or for reasons connected with protection of exclusive rights such as patents or copyrights, the products can be supplied only by a particular supplier." As in 1999 and 2000, these reasons accounted for more than 90 percent of cases.

Reasons	1999	2000	2001
	Number of contract	Number of contract	Number of contract
	Ratio (%)	Ratio (%)	Ratio (%)
In the absence of tenders in response to an open or selective tender	1,117	950	476
	35.7	29.7	18.5
When, for works or art or for reasons connected with protection of exclusive rights such as patents or copyrights, the products can be supplied only by a particular supplier	812	981	772
	25.9	30.7	30.1
When, for reasons of extreme urgency, the products could not be obtained in time by means of open or selective tendering procedures	47	59	84
	1.5	1.8	3.3
The change of supplier would harm interchangeability with already existing products or equipment	1,048	1,131	1,159
	33.5	35.3	45.1
When an entity procures prototypes or a first product which are developed at its request	93	54	67
	3.0	1.7	2.6
Others	16	25	11
	0.5	0.8	0.4
Total	3,133	3,200	2,569

In comparison　to 2000, the ratio of foreign supplier's awards unchanged in the number of contracts in 2001, while it decreased in value basis.

Table6-1: Ratio of Procurement from Foreign Suppliers

Table 6-2: Nation's Origin in the Foreign Supplier's Award

In 2001, the trend that foreign suppliers' ratio of awards or contracts is higher than that of tenders has continued.

Table７: Ratio of Foreign Suppliers' Tenders and Awards to them　in 2001

(Note1)
Ratio of tender: The number of foreign tenders/The total number of tenderers
Ratio of awards: The number of contracts awarded to foreign tenderers/The total number of tenderers in selective tendering procedures
Ratio of contracts: The number of contracts made by foreign suppliers/The number of singletendering procedures

In 2001, foreign goods and services accounted for about 12 % of the total procurement spending, and about 19 % of the total number of contracts.

Table 8: Ratios of Foreign Products and Services

[Note1] Figures in parentheses are for products only.

In 2001, products and services from the United States accounted for approximately 60 % on the value basis and about 50% on the number of contracts basis.

Table 9-1: Breakdown of foreign products and services by place of origin (value base)

Table 9-2: Breakdown of Foreign Products and Services by Place of Origin
(number of contract base)

Table 10 shows Japanese government procurement by product categories, which are further broken down into procurement value and ratios for foreign made products.

The total value of procurement of goods amounted to approximately 734.5 billion yen. The items that have large shares are "office machines and automatic data processing equipment" (personal computers, typewriters, projection screens, etc.), "telecommunications and sound recording and reproducing apparatus and equipment"(TV, radio, radar, video, recorder, etc.), and "scientific and controlling instruments and apparatus" (binoculars, thermometers, voltmeters, micrometers, etc.)".

These three categories accounted for about 60% of total procurement value.

The category with the highest ratio of foreign products is "mineral products" (soil and rocks, crude heavy oil, metal ores, etc.), and it accounted for about 64 % in this category.

Table 10: Total procurements by product (2001)

Table 11 shows government procurement by service categories (value basis) and presents the ratio of foreign services.

Total procurement amounted to 277.2 billion yen and 70 % (195.9 billion yen) of total is shared by "Computer and related services," (computer programming, data processing, etc.).

The categories with the highest ratio of foreign services are "Telecommunications services" and "Air transport services".

Table 11: Total procurements by types of services（2001）

Table 12 shows procurement by product categories and foreign product ratios.

The total number of product procurement amounted to 11,717, and the category of "photographic apparatus and equipment optical goods, and clocks" (film, cameras, projectors, chronometers, etc.), accounted for the largest share of about 25% of the total.

The categories with high foreign shares are "mineral products" (soil and rocks, crude heavy oil, metal ores, etc.) and " aircraft and associated equipment".

Table 12: Number of Procurement Contracts by Product Categories(2001)

Table 13 shows government procurement by service categories on contract basis and foreign service ratios.

The number of contracts amounted to 3,131 and about a half of total is "Computer and related services." (computer programming, data processing, etc.)

Table 13: Number of procurement contracts by type of services(2001)

The voluntary measures (Procedures for Government Procurement of Products [Operational Guidelines]) encourage the adoption of the Overall-Greatest-Value evaluation method (OGV) where the lowest-price-award method is deemed inadequate. In addition, in the areas of computer products and services, telecommunications products and services, and medical technology products and services, when large procurement of over 800,000 SDR is conducted, it is obligatory in the voluntary measures to apply the OGV.

In 2001, the OGV was adopted in 745 procurements, representing about 5 % of total procurement. Of these contracts, 187 were awarded to foreign products and services.

Table 14: Implementation of Overall-Greatest-Value Evaluation Method

Responses to pre-bid requests for submission of materials and comments on draft specifications are illustrated in Table 15-1 and Table 15-2.

Table 15-1: Response to Requests for Submission of Materials

Table 15-2: Response to Requests for Comments on Draft Specifications

Under the current WTO Agreement on Government Procurement, the period for receiving tenders from the date of publication of the Notice　of Invitation to Tender is set at a minimum of 40 days. In addition, a Japanese Government voluntary measure, "Understanding on　Government Procurement" issued in November 1991 stipulates that the period should be no less than 50 days.

Table 16 shows that the period of 50 days has been　secured.

Table 16: Average period for the receipt of tenders

In order to explain the planned procurement published in the official gazette (kanpo) in details, the Ministry of Foreign Affairs and each procurement entity sponsors government procurement seminars at the beginning of, or as early as possible in, the fiscal year. (The Ministry of Foreign Affairs sponsored a seminar on April 26, 2001.)

Table 17: Attendance at Government Procurement Seminars

Table18: Entities with large amount/number of procurement

Note; （　） means percentage in the total.