public procurement system in japan - jacic hp model.pdf · procedure ・prefecture 46/47...
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Public Procurement System
in JAPAN
23 November 2011
Yasushi Kawanai
Japan Construction Information Center
Japan Construction Information Center
Japanese e-tendering System for public
procurement
2 Stories, for Central government and for Local governments
The original system was developed and carried out from 2001 in the public works already. And now over 50,000 tenders are executed in a year by this system in many government organizations.
As for the local, e-tendering system was adopted at 47 all prefectural local governments already and carried out from 2004 in a big projects.
Central
government
Local
government
and
Transparent process, fair & justice of public procurement
JACIC is
・My organization was a government agency controlled by MLIT (Ministry of Land, Infrastructure, Transportation and Tourism )to develop the 2 bidding systems. (It is now a kind of non-profit organization.)
・MLIT ordered JACIC to develop the e-bidding systems in 1999 and JACIC established a consortium to develop the system. Government budget was about half then. Other half was from system vender companies and others.
・On the other hand, the system for the local government was developed by JACIC for the own business under the MLIT’s supporting.
MLIT
JACIC
1.National Government System
Development by a Consortium
MLIT
Consortium
System specifications
Provision conditions
Development
IT Vendors
e-Tendering
System
by MLIT
JACIC
Know-how personnel
operating funds
After the development,
Nov. 13 2001 - First Electronic Tender Opening
e-Bidding for National Projects
(MLIT) year by year
• FY2001 about 100 Tenders
• FY2002 about 2,000 Tenders
• FY2003 All Jobs by MLIT into IT
(about 30,000)
Now over 50,000 Tenders
<Purchaser>
Disclosure of bidding results
Reading and selection
Qualification examination documents
Application for
qualification examination
Bidding
Notice of successful bidding
Notice of qualification check
Bidding announcement
Qualification check
Distribution of
bidding documents
Browsing
e-Bidding Price setting
Plan and estimate for implementation
Preparation of detailed work cost estimate sheet and bid documents
PPI
Bid opening
<Bid Participants>
E-Bidding business flow (directly)
PPI
※We has not changed the tendering process from the old paper way.
PPI web site (free site by JACIC)
※But tendering process is not changed, just transferred into
Information Technology.
Some other Systems supported this e-procurement
/PPI ; Just now mentioned
/Security IC card systems. (for bidders)
/Accident support stuff.
/Design and Construction Records
Information Systems (for P.Q.)
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
2.About Local System (for the 2nd stage)
• =[Core System standard] by JACIC
e-Tendering Core System
The core part of the e-Tendering
software, which has high flexibility
and can be applied to multiple
public purchasers.
e-Tendering System
Core
Based on the first original National System
If each body would develop it,
Purchaser
Bidders
Bidders
Bidders
Bidders
Bidders
Purchaser Purchaser Purchaser Purchaser
Electronic Bidding System
Many Interfaces
Many IC cards
they have to prepare many cards for each
Standardization
Purchaser
Tenderer
Tenderer
Tenderer
Tenderer
Tenderer
Purchaser Purchaser Purchaser Purchaser
Core Core Core Core Core
Common
Interface
Electronic Tendering
Systems
Standard Systems
※It would be cheaper for each body
than individual development
Core system structure
e-bidding core system
Core Section Customizable Section
Common bid functions (Non customizable)
・Bidding specific Program Components ・Security Function(PKI etc.)
User can customize
・Screen Design ・Forms Design etc.
• The basic functions required for e-Bidding are implemented in the
“Core Section”.
• The “Customizable Section” allows screen design changes and free
modifications to linkage function with related systems.
Some specific features of this systems
1.for the local government
It would be cheaper than their individual development
2.JACIC’s own cost
3. Unified standard or tools were also of bidders’ hope
3.[Core system] doesn’t mean some actual hard systems
Specification only (JACIC business model)
There are large venders in JAPAN for the e-bidding system from that time.
/ HITACHI,
/TOSHIBA,
/FUJITSU,
/NEC (Nippon Electric Company) …etc.
Local Government now
Purchase & Under procedure
・Prefecture 46/47
・Ordinance-designated city 18/19
・City etc. 12
※JACIC System was strong against the competitive systems.
Organizations introducing
e-Bidding Core System now
Central Government Organs (8) ・ Ministry of Land, Infrastructure, and Transport ・ 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 Defense ・ Cabinet Office (Okinawa)
※The standard of e-bidding system is now almost one standard in the field of public procurement.
Spread of the core system
(2011.9.1)
Group Core System Users Group total
Governments 7 30
Public corporations 9 100
Prefectures 46 47
Government-decreed cities 18 19
Municipalities 409 1704
Total 514 2000
Others 25 100
JACIC business for the core system
(user license)
Installation
the core system
Shared system
Prefectures and municipalities
Between municipalities
Individual system
Self development
ASP(Application service provider)
Self development
ASP
This standard is authorized on CEFACT
UN/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 Papers
TBG3 : Transportation
TBG4 : Customs
TBG5 : Finance
TBG6 :
TBG7 : Statistics
TBG8 : Insurance
TBG9 : Travel, Tourism & Leisure
TBG10: Healthcare
TBG11: Social Security, Employment & Safety
TBG12: Accounting & Auditing
TBG13: Environmental Management
TBG14: Business Process Analysis
TBG15: International Trade Facilitation
TBG16: EDIFACT Entry Point
TBG17: Harmonization & Documentation
TBG18: Agricultural
TBG19: eGovernment
TBG
UN/CEFACT TBG6:Architecture, Engineering & Construction
e-Tendering Project
I would like the Handbook in this conferences
to check and remark the tendering process of this UN/CEFACT, also, that is designated in BRS (Business Requirement Specification) &, RSM
( Requirement Specification Mapping.)
I think it is not difficult to follow this standards because it is very basic specification.
BRS: http://www.unece.org/hk/cefact/brs/brs_index.html
RSM:http://www.unece.org/cefact/rsm/rsm_index.html
Conclusion, Important points
for the starting of e-bidding systems.
1.To make the e-tender process clear in order to
meet the domestic conditions under consensus. Concept process.
2. Strong leadership of government
3.Setting up promoting bodies. Committee or agency, not government bodies.
4. Step by step Introduction, from pilot projects.
5. To learn from other countries, system venders and international organizations.
Thank You for your Attention !
What JACIC could help it for ?
JACIC is not consultant group for the foreign
countries.
We cannot help the starting countries so directly.
It is not our organization’s duty.
I understand that JACIC needs formal request through Ministry of Foreign Affairs whose web site is below.
http://www.mofa.go.jp/index.html
And then, we could do something, for example, to receive the delegation of research.
※ Japanese Back ground
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
trill
ion
Yen
GDP
invest. in const.
10.0%
17.6%
GDP vs Invest.In Const.
Source: Homepages of ministries
Ministry of Land, Infrastructure and Transport (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 in Japan (Not including supplementary budgets)
Public Works of Japan
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 (trillion yen)
Number of Licensed Construction Contractors (1,000 number)
Number of Employees in Construction Industry (10,000 Person)
(1,000 number ,10,000 Person)
(fiscalyear)
<peak of construction investment>('92)
84 .0
584559
51 .9
20 .4
31 .5
685
601
35 ,2
55 .7
<peak of private construction
investment>('90)
<peak of government construction
investment>('95)
<peak of number of employee>(Average
of '97 )
<peak of mumber of licenced
construction contractors>
('00.3.31)
▲39.0%
▲36.9%
▲38.2%
+5.3%
Comparison with the 1992 fiscal
year (peak of construction
investment)
e-Japan Strategy in 2000 and CALS/EC
e-Japan Strategy Jan 2001
e-Japan Strategy II July 2003
e-Japan Strategy II Accelerating Package
Feb 2004
IT Basic Law IT Strategic Head Office (Chair: Prime Minister)
2001 2002 2003 2004 2005
e-Japan Priority Plan (Mar 2001)
e-Japan Priority Plan 2004 (June 2004)
e-Japan Priority Plan 2003 (Aug 2003)
e-Japan Priority Plan 2002 (Jun 2002)
Preparation of
Infrastructure
Focusing on ICT Use
(Leading 7 areas)
Clarify Priority Measures to reach ICT Country
A: Global Strategy
B: Security
C: Contents
D: ICT Deregulation
E: Assessment
F: e-Gov & e-Rural Gov To overcome issues towards the Highest-level ICT country by 2005
Courtesy of Mr. Ito (JASTRO)
CALS/EC
as a part of e-Government Strategy
Central Government
Ministry of Land, Infrastructure and
Transport (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 Ⅱ” (July 2003)
Announced “Construction CALS Implementation Vision”
(April 1996)
Established “CALS/EC Promotion Headquarters” (May 2001)
Revised CALS/EC Action Program (March 2002)
Construction CALS/EC in Japan survey
design
Bidding
Contract
build O/M
Phase 1
’96-’98
Standardization
for 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 and
design
e-contract
full e-delivery
Information –
sharing
(optical
fiber using
GIS)
Yearly Targets for Local Promotion
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