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🌏 | Indian Federal Government, Vaccine Import Postponement Leave to State Government = Related Sources


Indian federal government postpones vaccine imports to state government = sources

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Maharashtra, which has the highest number of infected people, has proposed to hold an international bid for vaccine imports.

[New Delhi, XNUMXth Reuters] – According to several government sources, the Indian federal government is worried about the new coronavirus ... → Continue reading


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Competitive bidding

Competitive biddingWhat is (Kyosou Nyusatsu)?Buying and selling-ContractAgreementIn order to conclude a contract with a person who shows the most advantageous conditions in such cases, a method of having multiple contract applicants submit a document describing the contents and bid amount, and deciding the contractor from the contents and amount.mainlyCountryIt is often done by public institutions such as.simplybidAlso called (Nyusatsu, Irefuda).Make a contract without competitive biddingVoluntary contractThat.

Japan's competitive bidding system

As a general rule, contracts between national and local governments must be based on general competitive bidding (Accounting methodArticle 29-3 paragraph 1,Article 234 of the Local Autonomy LawItem 2).Designated competitive bidding and free contracts can only be conducted when required by law (Article 29-3, Paragraphs 3, 4 and 5 of the Public Accounting Act,Local government lawEnforcement Ordinance Article 167, Article 167-2).In competitive bidding,Scheduled priceThe lowest bid must be awarded (Article 29-6 of the Public Accounting Act).In addition, if you do not make a successful bid even if you make a competitive bid, you can shift to a free contract (Cabinet Order on Budgets and Accounting Ordinance Article 99-2, Article 99-3, Local Public Organizations Local Autonomy Law Enforcement Ordinance Article 167) No. 2 No. 8).

If operated correctly, the system will be extremely fair and transparent without wasting budget, but it will take a long time to conclude a contract (when public notice is published in the official bulletin, it takes two weeks from submission to public notice, and from public notice to bidding. 2 days in the standard number of days in the province[1], It takes a total of 55 days.It takes more days to consider technical proposals in detail[2].. ), The procedure is complicated, and there is a disadvantage that it is difficult for small businesses to enter.When collusion becomes normal, the merits of competitive bidding cannot be fully utilized, so collusion prevention measures are extremely important.

In recent years, the Accounting Law and the Local Autonomy Law have been amended for the purpose of ensuring the transparency of the accounting system of the national and local governments, and the movement to shift the bidding method from designated competitive bidding to general competitive bidding is accelerating.

Types of competitive bidding

There are two main types of competitive bidding:

  • General competitive bidding
A method in which bid information is announced, applications for participation are solicited, and all applicants who meet the conditions compete with each other to determine the contractor.
  • Designated competitive bidding
A method in which the contractor is decided by competing with each other nominated by the ordering party.

VE method

The VE method is a method in which the ordering party only presents a part of the construction objects to be ordered as a reference as a "standard plan" and asks the bidder to propose how to actually perform the construction.It is used for construction work where there is a lot of room for technical ingenuity. (VE stands for Value Engineering)

This method has been used before the enforcement of the Act on Promotion of Quality Assurance of Public Works, and is said to be a method that emphasizes cost reduction rather than quality assurance.

Have the technical data describe the proposal for the relevant part, and the ordering party will review it.In addition, at the time of examination, we may hear from the proposer about the details.Since the content of the proposal is based on the premise that the originally assumed function and quality of the construction object are not impaired compared to the standard proposal, proposals that do not meet this requirement may be rejected.As a result of the examination, the acceptance or rejection of the proposal will be notified at the same time as the notification of bid participation qualification, the adopted contractor will be calculated based on the proposal content, and the rejected contractor will be calculated based on the standard proposal presented by the orderer. Then, each bids.In some cases, bids are placed in price competition as they are, and in other cases, points are added to the content of the proposal and a comprehensive evaluation is made with the amount.

Low bid price survey system

In the following cases, the runner-up bid may be accepted as a successful bid (Article 29-6 of the Accounting Law, Article 167-10 of the Local Autonomy Law Enforcement Ordinance).

  • It is recognized that there is a risk that performance will not be performed in accordance with the contents of the contract.
  • Remarkably inappropriate as it may disrupt the order of fair trade

However, for national contracts, this provision can only be applied to a planned price of 1000 million yen or more (Cabinet Order on Budgets and Accounting Ordinance, Article 84).If necessary, the heads of each ministry and agency will prepare standards when it is recognized that there is a risk that performance will not be performed in accordance with the contents of the contract (Cabinet Order on Budgets and Accounting Ordinance, Article 85).If there is a case that meets this standard, the contracting officer, etc. must investigate whether it can be fulfilled (Cabinet Order on Budgets and Accounting Ordinance, Article 86).This surveyLow bidIt's called a survey.

Notification to national organizations under the joint name of Minister of Land, Infrastructure, Transport and Tourism and Minister of Finance to properly utilize the low bid price survey system as a measure against dumping orders[3]And notified the local government under the joint name of the Director of the General Policy Bureau of the Ministry of Land, Infrastructure, Transport and Tourism and the Director of the Autonomous Administration Bureau of the Ministry of Internal Affairs and Communications.[4]Has been done.

Bid deposit / bid guarantee insurance

The country or the ordering party is from a person who intends to participate in the bidding in case of damage to the ordering party due to failure to conclude the contract even though the bid participant has won the bid in the contract contract or sales contract to be ordered. , Make the bidder pay a deposit of 100/5 or more of the amount estimated by the bidder (Article 29-4 of the Accounting Law, with exceptions).If the winning bidder does not conclude a contract, this deposit will belong to (confiscate) the national treasury (Article 29-7 of the Public Accounting Act).

Contract deposit / performance guarantee insurance

In the contract of the contract or sales contract to be ordered, the government and the ordering party receive a deposit of 100/10 or more of the contract amount from the contractor in case of damage incurred by the ordering party due to the contractor's failure to fulfill the contract. Have them pay (Article 29-9 of the Accounting Law, with exceptions).If the contractor fails to fulfill the contract, this deposit belongs (forfeited) to the national treasury (Article 29-10 of the Accounting Law).

Bid and winning bid rate

The winning bid rate is the ratio of the winning bid price to the planned price, and is expressed as a percentage of "(successful bid price ÷ planned price) x 100".For example, if you make a successful bid for 1000 million yen against the planned price of 900 million yen, the winning bid rate will be 90%.

It should be noted that the winning bid rate is often used to calculate the additional payment amount when additional costs are incurred, and if the winning bid rate is low, the additional costs will be paid less than the actual amount.For example, if the winning bid rate is 70%, even if an additional cost of 300 million yen is incurred, only 300 million yen, which is 70 million yen x 210%, will be paid.

National citizenOmbudsmanHowever, there is a tendency to be taken up as a numerical value that proves the bid rigging because "the winning bid rate of 95% or more is suspected of collusion".The district court's judicial precedent also has a judgment that the existence of collusion is found on the grounds that the winning bid rate is high.

On the other hand, there is a view that it is feared that the bid result will be used as the basis for collusion, and there is an argument that the rate is as high as around 95% even though there is no collusion in the US federal construction.

According to a survey by the Ministry of Land, Infrastructure, Transport and Tourism based on the Bidding Contract Optimization Law, the average successful bid rate of prefectures in 2006 was 80.4% in Nagano prefecture, the lowest, and 95.6% in Kagoshima prefecture, which varies from region to region.Excessive competition in public works has intensified, and the winning bid rate has been taken up as a guideline for dumping (excessive low-priced orders).

British competitive bidding system

In the UK, there is no law that unifies the bidding and contract procedures for public works, and it is up to the ordering party to decide what method to use for bidding and contracts.[5]..However, in reality, bidding will be carried out after the orderer's design is completed according to the adoption recommendation of the "Selective Competitive Bidding Procedure Regulations" established by the National Building Joint Advisory Committee.Single-step selective competitive biddingOr bid before the design is completedTwo-stage selective competitive biddingHas been adopted[5].

International bidding

World Trade Organization (WTO) "Agreement on Government ProcurementAnd ""Scheduled priceIs 10 millionSDRA system in which overseas companies can participate when procuring more than (equivalent to 2007 million yen as of 1,600). From August to September 2006Tohoku UniversityIt is reported that a bid was made at 1,599 million yen (10 SDR = 1,600 million yen at that time), which seems to have escaped from the international bid, in the medical device procurement bid conducted by the company.[6].


  1. ^ http://www.mlit.go.jp/sogoseisaku/const/kengyo/kokyo.htm
  2. ^ http://www.mlit.go.jp/chotatsu/tutatsu/04/051007-4-2.pdf
  3. ^ "Promotion of bidding for public works projects and optimization of contracts" (National General Enrollment No. 14, Financial Total No. 10 dated October 31, 35)
  4. ^ "Promotion of bidding for public works projects and optimization of contracts" (National General Enrollment No. 14, General Bank No. 10 dated October 31, 36)
  5. ^ a b Industrial Policy Study Group "General Competition Q & A New Public Works Bidding / Contract System" Nikkan Kensetsu Tsushin Shimbun, 1994, p. 37
  6. ^ "asahi.com: XNUMX Tohoku University orders, the same amount of bids at the planned price Escape from international bidding --Society". Asahi Shimbun (September 2007, 8). 2007th of February 8Browse.

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