The total value for government procurements of goods and services for 2002 was 9,690 trillion yen, a decrease of 4.5% from the previous year. On the other hand, the total number contracts increased by 6.0%.

Table 1: Total value and number of government procurement contracts

（100mil. Yen or Number of contracts）

1997 1998 1999 2000 2001 2002 Total value (increase from the previous year, %) 9,640 10,922 10,296 10,431 10,146 9,690 (-1.2) (13.3) (-5.7) (1.3) (-2.7) (-4.5) Total number of contracts (increase from the previous year, %) 16,293 15,777 15,413 15,348 14,848 15,739 (14.0) (-3.2) (-2.3) (-0.4) (-3.3) (6.0)

The ratios of open tendering contracts to single tendering contracts vary significantly according to whether the items procured were goods or services. In 2002 about 88% of the number of goods procurement was contracted through open tendering procedures. In contrast, in terms of service, almost the half of the number 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

(Upper col.: Number of contracts, Lower col.: Value(100 mil. Yen))

Total Open tendering Selective tendering Single tendering Goods 12,408 10,883 (87.7) 59 (0.5) 1,466 (11.8) 6,874 5,250(76.4) 145 (2.1) 1,479 (21.5) Services 3,331 1,821 (54.7) 1 (0.0) 1,509 (45.3) 2,816 862 (30.6) 1 (0.0) 1,953 (69.4) Total 15,739 12,704 (80.7) 60 (0.4) 2,975 (18.9) 9,690 6,112 (63.1) 146 (1.5) 3,431 (35.4)

(Note)Figures in parentheses: Ratio(％)

In 2002, 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 63% on a value base)

The contracts through selective tendering procedures are decreasing each year. In 2002 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 2000 and 2001, these reasons accounted for more than 90 percent of cases.

Reasons	2000	2001	2002
	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	950	476	698
	29.7	18.5	23.5
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	981	772	749
	30.7	30.1	25.2
When, for reasons of extreme urgency, the products could not be obtained in time by means of open or selective tendering procedures	59	84	68
	1.8	3.3	2.3
The change of supplier would harm interchangeability with already existing products or equipment	1,131	1,159	1,380
	35.3	45.1	46.4
When an entity procures prototypes or a first product which are developed at its request	54	67	65
	1.7	2.6	2.2
Others	25	11	15
	0.8	0.4	0.5
Total	3,200	2,569	2,975

In comparison to 2001, the ratio of foreign supplier's awards unchanged both in the number of contracts and in value basis in 2002.

Table6-1: Ratio of Procurement from Foreign Suppliers

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

In 2001, foreign suppliers' ratio is still low in that of both tenders and awards. However, foreign suppliers' ratio of contracts increases from 4.5% to 5.3%

(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

The ratio of foreign goods and services to the total value or number of contracts is almost the same level these three years. In 2002, foreign goods and services accounted for about 13.8 % of the total procurement spending, and 20.3 % of the total number of contracts.

Table 8: Ratios of Foreign Products and Services

[Note1] Figures in parentheses are for procurement of goods　only.

In 2002, products and services from the United States accounted for approximately 58 % on the value basis and about 45% 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 687.4 billion yen. The items that have large shares are "office machines and automatic data processing equipment" (personal computers, typewriters, projection screens, etc.), and "scientific and controlling instruments and apparatus" (binoculars, thermometers, voltmeters, micrometers, etc.)".
These three categories accounted for about 50% 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.)(about 69 %), and "Aircraft and associated equipment" (aircraft, balloon, propeller, parachute, etc.)( about 62%).

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

(Units: 100 million yen, %)

Category Total value (difference between 2000 and 2001) Foreign Share (%) Maintenance and repair services of motor vehicles 0.0(-0.4) 0.0 Maintenance and repair services of motorcycles and snowmobiles 1.1(+1.1) 0.0 Other land transport services (except Mail transportation by land) 61.9(-11.3) 0.0 Rental services of sea-going vessels with operator 10.4(-1.8) 0.0 Rental services of non-sea-going vessels with operator 1.7(+1.5) 0.0 Air transport services (except Mail transportation by air) 7.1(0) 8.4 Freight transport agency services 5.2(+0.4) 0.0 Courier services 0.4(+0.4) 47.9 Telecommunications services 45.2(+8.9) 9.2 Computer and related services 2,099.6 (+140.7) 7.4 Market research and public opinion polling services 10.1(+0.5) 0.0 Advertising services 117.4(-58.6) 0.0 Armored car services 15.8(+5.4) 0.0 Building-cleaning services 162.2(+25.0) 0.0 Publishing and printing services 56.1(-3.7) 0.0 Repair services incidental to metal products, machinery and equipment 86.4(-0.3) 6.7 Sewage and refuse disposal, sanitation and other environmental protection 23.0(-5.8) 0.0 Other 112.4 0.0 Total 2,816.0(+44.1) 5.9

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

The total number of product procurement amounted to 12,408, and the category of "photographic apparatus and equipment optical goods, and clocks" (film, cameras, projectors, chronometers, etc.), accounted for the largest share of about 23% 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)

(Units: number of contracts, %)

Products Total Number (difference between 2000 and 2001) Foreign Ratio Products from agriculture and from agricultural and food processing 2(0) 0.0 Mineral products 937(+86) 90.0 Products of the chemical and allied industries 139(-57) 7.2 Medicinal and pharmaceutical products 1,952(+79) 30.1 Artificial resins; rubber raw hides and skins; leather; and articles thereof. 35(-12) 2.9 Wood and articles of wood; paper making material; paper and paperboard and articles thereof. 378(+11) 0.0 Textiles and textile articles; thread for spinning and weaving; and articles thereof. 178(+39) 0.0 Articles of stone, of cement and similar materials; ceramic products; glass and glassware; and articles thereof. 3(0) 0.0 Iron and steel and articles thereof 56(-5) 1.8 Non-ferrous metals and articles thereof 57(-14) 1.8 Power generating machinery and equipment 216(+191) 1.4 Machinery specialized for particular industries 114(-16) 11.4 General industrial machinery and equipment 267(+2) 2.2 Office machines and automatic data processing equipment 1,107(+108) 10.1 Telecommunications and sound recording and reproducing apparatus and equipment 539(-96) 7.8 Electrical machinery, apparatus and appliances, and electrical parts thereof 259(+38) 8.1 Road vehicles 559(+122) 0.5 Railway vehicles and associated equipment 30(+19) 10.0 Aircraft and associated equipment 32(-3) 56.3 Ships, boats and floating structures 27(+4) 3.7 Sanitary, plumbing and veterinary equipment 19(-10) 5.3 Medical, dental, surgical and veterinary equipment 736(-67) 33.3 Furniture and parts thereof 262(-30) 0.8 Scientific and controlling instruments and apparatus 1,281(+266) 38.6 Photographic apparatus, equipment and optical goods; watches and clocks 2,878(-32) 21.6 Miscellaneous articles 345(+68) 14.8 Total 12,408(+691) 24.8

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

(Units: number of contracts, %)

Services Contracts (difference between 2000 and 2001) Foreign Ratio Maintenance and repair services of motor vehicles 1(0) 0.0 Maintenance and repair services of motorcycles and snowmobiles 2(+2) 0.0 Other land transport services (except Mail transportation by land) 119(-13) 0.0 Rental services of sea-going vessels with operator 10(0) 0.0 Rental services of non-sea-going vessels with operator 1(0) 0.0 Air transport services (except Mail transportation by air) 13(+3) 7.7 Freight transport agency services 7(-1) 0.0 Courier services 2(+2) 50.0 Telecommunications services 71(-48) 9.9 Computer and related services 1,829(+404) 5.7 Market research and public opinion polling services 17(-14) 0.0 Advertising services 180(-69) 0.0 Armored car services 61(+28) 0.0 Building-cleaning services 493(+58) 0.0 Publishing and printing services 137(+14) 0.0 Repair services incidental to metal products, machinery and equipment 185(+16) 2.2 Sewage and refuse disposal, sanitation and other environmental protection 102(-2) 0.0 Total 3,331(+200) 3.5

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

(Figures in parentheses are percentages)

Number of contracts 2000 2001 2002 Contracts on a domestic/ foreign basis Domestic products and services 434 558 516 Foreign products and services 123 187 140 Total 557 745 656 Ratio(%) 3.6 5.0 4.2

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

(Number of responses)

2000 2001 2002 Only Japanese suppliers answered 174 258 261 Only foreign suppliers answered 7 9 0 Both sides answered 78 94 79 Neither sides answered 7 24 5 Total 266 385 345

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

(Number of responses)

2000 2001 2002 Only Japanese suppliers answered 263 393 421 Only foreign suppliers answered 10 15 3 Both sides answered 140 129 108 Neither sides answered 28 52 47 Total 441 589 579

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

(days)

2000 2001 2002 Average period for the receipt of tenders 58.1 59.0 53.3

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, 2002.)

Table 17: Attendance at Government Procurement Seminars

Table18: Entities with large amount/number of procurement

Note; （　） means percentage in the total.