What is CHANS?

What is CHANS?

CHANS: Office for Government Procurement Challenge System

A Guide to the System of Complaint Review Procedures for Government Procurement

Introduction

    The Japanese government have a system for reviewing complaints regarding government procurement. This system will receives and processes specific complaints concerning government procurement of goods and services (including construction services), to ensure greater transparency, fairness, and competitiveness in the government procurement system, under the principle of non-discrimination of foreign and domestic sources.

    In line with the Agreement on Government Procurement negotiated concurrently with the Uruguay Round and which went into effect on January 1, 1996, the establishment of the new system, which combines and strengthens the voluntary measures which Japan had previously taken, was authorized in a Cabinet decision of December 1, 1995. The government's system for reviewing complaints regarding procurement will consist of the Office of Government Procurement Review (OGPR), headed by the Chief Cabinet Secretary and with administrative vice-ministers or directors from all ministries and agencies as its members, and the Government Procurement Review Board (the Board), which will receive and review the actual complaints, composed of 7 committee members and 16 special members (see Fig. 1). Please consult with the Secretariat for the Board (Office for Government Procurement Challenge System in Cabinet Office) about filing complaints concerning government procurement.

To file a complaint

1. Scope of Government Procurement

    This system reviews complaints concerning procurement procedures by the central government and other central government-related entities (public corporations, etc.). In the case of local public bodies (prefectures or major cities designated by ordinance), please contact the respective entity concerned.

2. Where to File a Complaint

    Complaints may be filed with the Government Procurement Review Board (The Secretariat is Office for Government Procurement Challenge System, Cabinet Office).

3. Filing of Complaints

    Complaints may be filed concerning specific, individual cases of government procurement. Complaints will be received only when submitted on the prescribed form (see Form 1) though you can hand into the Secretariat in any way.

4. Complainant

    Complaints may be filed by persons (bodies) participating in the government procurement concerned or qualified to do so.

5. Agent and Assistants

    The complainant and the entity concerned may attend and give their views at meetings of the Board. On such occasions, they may use agents(see Form 3,Form4) or assistants(see Form 5). For example, they can hire lawyers or technical experts.

6. Participants

    All persons (bodies) who have interests in the procurement subject to the complaint may participate in the complaint processing procedures. Persons wishing to attend as participants should notify the Secretariat of the Board, using the prescribed form (Form 2), within five (5) days after the complaint has been accepted by the Board and public notice given, through the Official Gazette, the Internet (/access-e.html) or other sources.

Outline of Complaint Review Process

1. Procedures for Complaint Review (see Fig. 2)

    Based on the Review Procedures for Complaints Regarding Government Procurement (adopted December 14, 1995 by the Office of Government Procurement Review), complaints will be reviewed as described below.
    Persons or bodies wishing to file a complaint may do so with the Board within ten (10) days after the basis of the complaint is known. The Board will examine complaints received within seven (7) working days of filing and determine whether they will be accepted for review. If a complaint is accepted for review, the Board will immediately notify the complainant, OGPR, and the procuring entity of this in writing and publicly announce its decision through the Official Gazette, the Internet, and other means, soliciting the attendance of participants with interests in the complaint. The procuring entity is required to present a report to the Board; if the complainant or the participants disagree with this report, they may present statements to the Board or request a review by the Board, which the Board will subsequently undertake. Finally, a report on findings will be drawn up within ninety (90) days by the Board in cases of standard review. This period can be shortened if the complainant or the procuring entity so desire. This time limit may also vary according to the type of procurement of the complaint. If the Board finds that procurement has been carried out in a manner inconsistent with any provision of the Agreement on Government Procurement or other applicable measures, it will draw up recommendations with the report. The procuring entity is required, as a rule, to follow the recommendations of the Board.

2. Standards for Judging Whether a Complaint is Justified

    The Board will accept and examine complaints filed. The decision as to whether a complaint is justified will be made according to whether it follows the Agreement on Government Procurement and procedures for government procurement which the government of Japan has set voluntarily.

(Note 1)Agreement on Government Procurement

    The Agreement on Government Procurement, which went into effect in January 1981, sets forth rules for non-discrimination between foreign and domestic sources and for the treatment same as Japanese nationals. This Agreement was subsequently reviewed on a number of occasions, and as a result of negotiations concurrent to those of the Uruguay Round, the Agreement was amended 1) to broaden the scope of government procurement (applying to regional governments, and to a broader range of government-related entities); 2) to apply the Agreement to the procurement of services; and 3) to introduce a complaint review system pertaining to procurement procedures. This Agreement, signed by 23 countries, went into effect on January 1, 1996.

(Note 2) Voluntary Measures Taken by Japan

    In addition to its obligations under the above Agreement, Japan has, after negotiations with the United States, agreed to take voluntary measures incorporating more positive steps in the areas of government procurement of Supercomputers and computer products, non-research & development satellites, telecommunications equipment, medical technology equipment, and construction services. One of the voluntary measures taken by the Japanese government in advance of implementation of the Agreement was to operate a complaint review system administered by the Cabinet Councilor's Office on External Affairs of the Prime Minister's Office. With the implementation of the new Agreement, this system will be continued under the Review Procedures for Complaints Concerning Government Procurement.

Contact of the CHANS

Secretariat for the Government Procurement Review Board
(Office for Government Procurement Challenge System, Cabinet Office)

Kasumigaseki 3-1-1, Chiyoda-ku, Tokyo 100-8970

Tel (direct dial) 03-3581-9044

Fax 03-3581-4772

E-MAILClick and see a transmission screen

1. Procedures for Complaint Review (see Fig. 2)
	Based on the Review Procedures for Complaints Regarding Government Procurement (adopted December 14, 1995 by the Office of Government Procurement Review), complaints will be reviewed as described below. Persons or bodies wishing to file a complaint may do so with the Board within ten (10) days after the basis of the complaint is known. The Board will examine complaints received within seven (7) working days of filing and determine whether they will be accepted for review. If a complaint is accepted for review, the Board will immediately notify the complainant, OGPR, and the procuring entity of this in writing and publicly announce its decision through the Official Gazette, the Internet, and other means, soliciting the attendance of participants with interests in the complaint. The procuring entity is required to present a report to the Board; if the complainant or the participants disagree with this report, they may present statements to the Board or request a review by the Board, which the Board will subsequently undertake. Finally, a report on findings will be drawn up within ninety (90) days by the Board in cases of standard review. This period can be shortened if the complainant or the procuring entity so desire. This time limit may also vary according to the type of procurement of the complaint. If the Board finds that procurement has been carried out in a manner inconsistent with any provision of the Agreement on Government Procurement or other applicable measures, it will draw up recommendations with the report. The procuring entity is required, as a rule, to follow the recommendations of the Board.
2. Standards for Judging Whether a Complaint is Justified
	The Board will accept and examine complaints filed. The decision as to whether a complaint is justified will be made according to whether it follows the Agreement on Government Procurement and procedures for government procurement which the government of Japan has set voluntarily.
	(Note 1)Agreement on Government Procurement
	The Agreement on Government Procurement, which went into effect in January 1981, sets forth rules for non-discrimination between foreign and domestic sources and for the treatment same as Japanese nationals. This Agreement was subsequently reviewed on a number of occasions, and as a result of negotiations concurrent to those of the Uruguay Round, the Agreement was amended 1) to broaden the scope of government procurement (applying to regional governments, and to a broader range of government-related entities); 2) to apply the Agreement to the procurement of services; and 3) to introduce a complaint review system pertaining to procurement procedures. This Agreement, signed by 23 countries, went into effect on January 1, 1996.
	(Note 2) Voluntary Measures Taken by Japan
	In addition to its obligations under the above Agreement, Japan has, after negotiations with the United States, agreed to take voluntary measures incorporating more positive steps in the areas of government procurement of Supercomputers and computer products, non-research & development satellites, telecommunications equipment, medical technology equipment, and construction services. One of the voluntary measures taken by the Japanese government in advance of implementation of the Agreement was to operate a complaint review system administered by the Cabinet Councilor's Office on External Affairs of the Prime Minister's Office. With the implementation of the new Agreement, this system will be continued under the Review Procedures for Complaints Concerning Government Procurement.