What Japan Accounting Act (Kaikei-ho, Act No. 35 of 1947) + Local Autonomy Act + Government Procurement Framework requires
The Japanese government procurement legal framework is anchored on the Accounting Act (Kaikei-ho, Act No. 35 of 1947) which sets the principal rules for national government contracts including procurement of goods, services, and construction works, and the Local Autonomy Act (Chiho Jichi-ho, Act No. 67 of 1947) which sets the parallel rules for prefectural and municipal government contracts. The Accounting Act is supplemented by the Cabinet Order on the Budget, Auditing of Accounts and Accounting (Budget Auditing and Accounting Cabinet Order) and the Ministerial Ordinance on the Budget, Auditing of Accounts and Accounting which provide the operational procurement procedures. The principal procurement methods specified in the Act are general competitive tendering (the default method under Article 29-3 of the Accounting Act), designated competitive tendering (limited to a designated supplier set), and negotiated contracts (sole-source justified under prescribed exceptions in Article 29-3). The framework intersects multiple supporting regimes including the Act on Promotion of Quality Assurance in Public Works (Public Works Quality Assurance Act, 2005, amended 2014 and 2019) which sets supplemental rules for public works procurement, the Act on the Promotion of Subcontracting Small and Medium Enterprises which sets SME participation preferences, the Act on Special Measures for Strengthening Public Procurement of Recycled Articles (Green Purchasing Law, 2000) which sets the green procurement framework, and the Act on Public Records Management for the records management dimension. The central oversight for national procurement is provided by the Board of Audit of Japan (an independent constitutional body), the Cabinet Office and the Ministry of Internal Affairs and Communications for general procurement policy, and the Ministry of Finance for budget execution. Japan is a party to the WTO Agreement on Government Procurement (GPA 2012) and the various bilateral free trade agreements government procurement chapters. Japan's procurement framework is decentralised across ministries and agencies with each conducting its own procurement subject to the Accounting Act and the Cabinet Office guidance; central electronic procurement is operated through the e-procurement system shared across ministries with sectoral variations.
Pillar: Public Sector & Government Procurement · Authority: Diet of Japan (legislative); Ministry of Finance, Japan (budget execution policy); Cabinet Office, Japan (general procurement policy coordination); Board of Audit of Japan (independent oversight); Ministry of Internal Affairs and Communications (local government procurement) · Version: 1.0.0 · Last updated:
Primary source: https://www.cao.go.jp/
SHA-256 integrity: a05a06c51689bda9ead5e4fbbfe613eb47350077525114a237dd580cf446cc73
Primary Citations — 10 traced to source
- Accounting Act (Kaikei-ho, Act No. 35 of 1947) - principal Japanese statute governing national government contracts and procurement
- Local Autonomy Act (Chiho Jichi-ho, Act No. 67 of 1947) - parallel statute for prefectural and municipal government procurement
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