Provisional Translation
| OTO No. | 558 | Classification | MHA-20 |
|---|---|---|---|
| Date of Acceptance | August 20, 1997 | Ministry/Agency Receiving Complaint | Economic Planning Agency |
| Responsible Ministries | Ministry of Home Affairs | Related Laws | Agreement on Government Procurements Local Autonomy Law |
| Complainant | The American Chamber of Commerce in Japan | Exporting Countries | USA |
| Subject | Improvement of procurement procedures for public hospitals in the prefectures and ordinance-designated cities | ||
| Details of Measures | Description of Complaint: 1. Regarding procurement of goods by national hospitals, a comprehensive evaluation method has been introduced whereby the successful bidder is determined on the basis of the bid price plus other technical aspects such as performance and others, under the Measures Relating to Procurement of Medical Technology Services in the Public Sector of Japan, which were decided on in March 1994 to implement the Agreement on Government Procurement. 2. However, this method has not yet been introduced in the prefectures and ordinance-designated cities. Given that the government is encouraging the prefectures and ordinance-designated cities to adopt the comprehensive evaluation method, the complainant maintains that this method should be used for procurement by public hospitals as well. The ministry replied as follows: 1.(1) In applying the Measures Relating to Procurement of Medical Technology Services in the Public Sector of Japan, the prefectures and ordinance-designated cities should in principle take the necessary measures, in consideration of local conditions and the provisions of applicable laws, in the case of procurement valued at SDR200,000 or more. However, at the present time, the comprehensive evaluation method itself cannot be adopted by these bodies, owing to the lack of appropriate provisions in the Local Autonomy Law and the Local Autonomy Law Implementation Order which govern procurement by municipalities. (2) However, after the adjusting of laws to deal with the above issue was studied, this matter has been included in the "Three-year Plan for Promoting Deregulation" (adopted by the Cabinet in March 1998), and the conclusion reached was that changes should be made to make it possible for municipalities to use the comprehensive evaluation system as well. (3) In addition to studying the legal aspects of this issue, a study committee has been established which has begun to study actual conditions and intentions regarding bids on the part of municipalities. The committee will reach a conclusion during FY1998 and the necessary measures will be taken during FY1999. 2. After this complaint was replied to, the study committee reached a conclusion, and the Cabinet decided (on February 12, 1999) on a government ordinance to partially amend the Local Autonomy Law Implementation Order to allow use of the comprehensive evaluation system by municipalities. |
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| Classification of Processing | A | Directions | IV |
| Remarks | Improvement measures were taken on February 12, 1999. | ||