JapanInternational
Cooperation
SystemJICS

PROCUREMENTGUIDELINEAPRIL 2012
JAPAN INTERNATIONAL
COOPERATION SYSTEM

1TABLE OF CONTENTS
Preamble ................................................................................................................................................ 2
Ⅰ Basic Principles ................................................................................................................................ 4
Ⅱ Procurement Procedures................................................................................................................ 6
1.

Tender Documents....................................................................................................................... 6(1) General.................................................................................................................................... 6(2)(3)

Validity of Tender and Tender Bond ...................................................................................... 6
Language ................................................................................................................................ 6

(4)
(5)

Clarity of Tender Documents ................................................................................................. 7
Technical Specifications ......................................................................................................... 7(6)(7)

Use of Brand Names............................................................................................................... 7
Delivery Requirements........................................................................................................... 7(8) Contract Draft ........................................................................................................................ 72．Tender Procedure ......................................................................................................................... 8(1)(2)

General.................................................................................................................................... 8
Public Announcements ........................................................................................................... 8(3) Prequalification of Tenderers................................................................................................. 8(4) Questions, Replies and Amendments Concerning Tender Documents..................................... 9(5)(6)

Procedures for Tender Opening ............................................................................................. 9
Confidentiality of Tender Process .......................................................................................... 9(7)(8)

Tender Examination ............................................................................................................... 9
Tender Evaluation and Determination of Successful Tenderer.......................................... 10(9) Notification and Announcement of Tender Result .............................................................. 10(10) Rejection of All Tenders...................................................................................................... 11
3.

Procurement Contract............................................................................................................... 12(1) General.................................................................................................................................. 12(2) Type of Contract ................................................................................................................... 12(3) Contract ................................................................................................................................ 12
Ⅲ Supervision of Procurement......................................................................................................... 14
1. General ......................................................................................................................................... 14
2. Supervision of Performance......................................................................................................... 14
3. Confirmation of Performance Completion .................................................................................. 14
4. Evaluation of Completed Procurement and Follow-Up.............................................................. 141

Preamble
The Basics of JICS Procurement
Japan International Cooperation System (hereinafter referred to as"JICS”), a general incorporated foundation, assists the recipients ofJapan’s Official Development Assistance (ODA) with the acquirement ofgoods and services, appropriately and efficiently.
Procurement generally refers to the act of acquiring goods and/orservices needed to achieve a specific purpose, in exchange for adequate
payment. In order to secure certain standards of quality, it is necessary
for JICS to fix in advance some rules concerning the procurement
purpose, procedure, economic process and so forth.
In addition to this, it should be noted that procurements
implemented by JICS are public ones, utilizing public funds for public
purposes and therefore, need to satisfy the following factors:
Impartiality

to be always impartial in the procurement process
such as determining specifications of the goods anddesignating suppliers
Fairnessto be always fair and equitable in the procurement
processCompetitiveness to ensure a sufficient number of suppliers orcontractors in a price competition
Complianceto be in conformity with all the related laws
Transparency
to ensure the transparency of the whole procurement
process
Independence
to ensure independence in the procurement process

JICS Procurement Concept
JICS puts great emphasis on helping the people of the recipient
countries. This core idea shall at all times be kept in mind when
implementing public procurements aimed at the assistance ofdeveloping countries. The present guideline embodies the regulations
for procurement and gives essential information on its process.

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JICS

PROCUREMENTCONCEPT

JICS shall timely implement procurements of the goods and services
required for the purpose of supplying them to the people of the recipient
countries, maximizing economy and efficiency in procurements, andensuring impartiality, fairness, competitiveness and transparency.
Besides implementing ordinary procurements, JICS shall provide
necessary services and make all possible efforts in order to help people
in the recipient countries to benefit from the various projects.

3Ⅰ Basic Principles
1.

2.

Introduction

Japan International Cooperation System (hereinafter referred
to as “JICS”), a public service corporation, implements projects as
stipulated in Article 4 of the “The Articles of Incorporation of Japan
International Cooperation System (JICS).” The JICS Procurement
Guideline sets forth the general rules to be followed by for theimplementation of the said projects.

Applicability of this Guideline
This guideline sets forth the regulations concerning theprocurements of goods, work, and services (hereinafter referred toas “goods”) implemented by JICS. This guideline shall be applied to
all the procurements in which JICS is concerned, except in the casewhere guidelines issued by the Ministry of Foreign Affairs of Japanor other institutions prevail. 13.

Methods of Procurement Contract

JICS procurement shall, in principle, be implemented throughCompetitive Tendering 2 . However, a tender method other thanCompetitive Tendering, such as Selective Tendering 3 , Shopping 4 , orDirect Contracting, 5 can be used if such Competitive Tendering is
not deemed most economical and efficient. The order of priority indetermining which method to be used is 1. Selective Tendering, 2.
Shopping, and 3. Direct Contracting. The procurement procedures
other than Competitive Tendering are used under the following

1

This guideline is not applicable to procurements of consultant services.
In Competitive Tendering, the tender opportunity is announced and open to all
potential tenderers who are qualified for the tender, and the contract is awarded
to the tenderer who offers the most advantageous conditions for the contracting
entity.
3
Selective Tendering is competitive tendering by direct invitation of tenderers,
according to certain qualifications, without open advertisement.
4
Shopping is a procurement contract method based on the comparison of pricequotations obtained from several (generally at least three) tenderers to ensurecompetitive prices.
5
Direct Contracting is the procurement method of negotiating directly with thesupplier before placing orders and concluding a contract without competition ofsuppliers.
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circumstances:1) where the number of qualified suppliers is limited;
2) where the scale of procurement is so small that it is duly doubtfulthat potential tenderers would be interested, and the advantages ofCompetitive Tendering would be outweighed by the administrative
burden involved;3) where all or part of the initial tenders is rejected or not completed
and there is a need for re-tendering;4) where spare parts for existing equipment are procured, or whereequipment can be procured only from specified manufacturer(s);5) where emergency procurement is required 6 ; or6) where JICS considers that Competitive Tendering is inappropriate
for any other reasons.

4.

Prevention of Unfairness and Corruption

The staff of JICS must conduct its duties, constantly observing thewill for securing fair competition in international trade, conforming todefinite standards of ethics, and make every effort to prevent theprocurement process from being unfair and corrupted.

6

Where humanitarian and urgent support is required, such as emergency support andurgent recovery support after a disaster.

5

Ⅱ

Procurement Procedures

1.

Tender Documents(1)

GeneralThe tender documents shall contain all the information necessary toenable tenderers to prepare valid tender offers for the goods to beprocured. Tender instructions or specifications shall include tender
evaluation criteria. The tender documents shall generally include suchinformation as:
1) Instruction to Tenderers2) Tender Schedule
3) Formality of Tender 74) Award of Contract5) Delivery Requirements
6) Technical Specifications or Drawing of Goods to be Procured7) List of Goods or Detailed Bill of Quantities
8) Primary Contents and Form of Contract
9) Shipment and Delivery or Fulfillment Period, etc.
If a fee is charged for the tender documents, it shall be reasonable.
(2)

Validity of Tender and Tender Bond

Tenderers are requested to make sure that their tenders are valid forthe period stipulated in the tender documents. In some cases, they canalso be requested to submit a tender bond or the like, which fee orpercentage shall be reasonable, taking into account the contractual
amount, and be stipulated in the tender documents.
(3)

Language

The language used for the procurement process and theprequalification documents, tender documents, contract documents andthose incidental to tendering, etc. shall be the appropriate language foreach project with which the tender is concerned.

7

As for tendering open to foreign companies, submission of the tender documents bymail, etc. can be accepted.

6

(4)

Clarity of Tender Documents

The tender documents shall not contain factors to hinder competition
unnecessarily, and shall describe as clearly and precisely as possible thegoods to be procured, contract obligations, performance method, periodof execution, minimum requirements for performance, warranty as wellas other pertinent items.
(5)

Technical Specifications

Technical specifications in tender documents shall specify clearly andprecisely the significant items concerning the procurement of goods,
shall identify the main factors such as quantity, essential functions,materials and equipment, and shall encourage the broadest possible
competition without giving preference to a product or a particularbrand.
(6)

Use of Brand Names

Brand names shall be quoted only in the case where it seems difficult
to identify goods without mentioning them.
In such a case, technical specifications shall quote several brand names
or include a list of equivalent ones.
(7)

Delivery Requirements

The tender documents shall give relevant indications regarding
delivery requirements essential for tenderers to quote their tenderprices and risk responsibility, such as the names of the goods, technicalspecifications, trade terms (e.g. INCOTERMS), as well as terms ofpayment, transportation requirements, performance bonds and delivery
schedule.
(8)

Contract Draft

The contract draft shall be attached to the tender documents so that
tenderers are aware of the content of the contract to be signed with thesuccessful tenderer.

72．Tender Procedure(1)

GeneralProcedures for Competitive Tendering comprise tender notice,prequalification of tenderers, distribution and selling of tender
documents, questions and replies, notification of amendments intender documents, submission of tenders, tender opening, tender
evaluation, determination of successful tenderer, award of contract,and contract conclusion. In the tender procedures, fairness,transparency and impartiality shall be secured. In addition, withsufficient time, JICS shall take into account the special circumstances,the complexity, the magnitude of the project etc., to provide tenderers
with fair and appropriate information.
(2)

Public Announcements

Public announcements shall be carried out as to basic informationof the tender, such as the name of the project, the outline of the goods
to be procured, the eligibility of tenderers and the time and date of
the tender documents distribution. Public announcements shall be
published in such a way that all potential tenderers will have fair
opportunities to learn about and participate in the tender. The
public announcements for tender shall give potential tenderers
sufficient time, and be advertised in the appropriate widely known
media.
(3)

Prequalification of Tenderers

JICS may conduct prequalification 8 of potential tenderers prior totendering. Prequalification shall be based solely on the capabilities
and resources of potential tenderers to perform the contract, taking
into account, in principle:
1) Their experience and past performance 9 on similar contracts;
2) Their capabilities 10 with respect to personnel, equipment andconstruction or manufacturing facility; and8Its evaluation is based on JICS’s evaluation criteria, conversing designatedfactors into numerical points.
9Experience in exportation to the country the tender is for, project performance
related to ODA, etc.
10
Their equipment, engineers, registered branch office or agent, etc. in therecipient country.

83) Their financial status 11 .
(4) Questions, Replies and Amendments Concerning Tender Documents
After selling tender documents and a sufficient time interval,
JICS shall accept questions concerning the tender documents fromthose who purchased them. In the case there is a question from oneof the potential tenderers, JICS shall reply to it and notify all thedocuments puchasers of both the question and reply. Similarly, inthe case where there is an amendment to the tender documents,
JICS shall notify all of them of the amendment. After answering
questions or notifying the purchasers of an amendment, a sufficient
time period shall be allowed before tender opening.
(5)

Procedures for Tender Opening
All tenders shall, in principle, be opened in public. The date, timeand place for tender opening shall be announced in the tender
documents. All tenders shall be opened at a fixed time and place.
Representative(s) of the recipient country, tenderers or theirrepresentatives, or the person who is permitted to be present, shallbe allowed to attend the procedure.

(6)

Confidentiality of Tender Process
After the public opening of the tenders, information relating totender examination, tender evaluation, and award of contract to thesuccessful tenderer shall not be disclosed to tenderers or otherpersons not officially concerned with the process.

(7)

Tender Examination
Regarding examination of tender documents, the following shallbe ascertained:
1) all the required documents have been submitted;2) they meet the eligibility requirements in the case wherequalification is conducted at the same time as tender opening,
without prequalification;3) they have been properly signed; and4) they are substantially responsive to the tender documents.

11Their capital, sales amount, company history, etc.

9(8)Tender Evaluation and Determination of Successful Tenderer
1) The tender evaluation of the prequalified tenderers shall beimplemented on the basis of the conditions specified in the tender
documents.
2) The successful tenderer shall be the tenderer who offers thelowest price within the ceiling price that JICS has set in advance,
satisfying technical specifications and other requirements in thetender documents, except for the cases 12 where:(a) the goods to be procured are sold in the market, such as
petroleum, raw materials, and grain, so that it may be difficult
to set a ceiling price 13 ;(b) emergency procurement is required (refer to page 4, footnote6); and(c) the goods that need to be procured are specially conditioned,
so that it might not be appropriate to determine the successful
tenderer solely through price competition.
3) As for tendering divided into plural lots, the tender evaluationand contract award shall be carried out lot by lot.

(9)

Notification and Announcement of Tender Result1) After the successful tenderer is designated, the Contract shallbe awarded to the successful tenderer and the unsuccessfultenderers shall be notified that they have failed the evaluation.
2) In the case where the tenderer who offered the lowest price is
not designated as the successful tenderer, JICS shall give him thereasons for his rejection.
3) After signing the Contract with the successful tenderer, thefollowing shall be announced: the outlines of the project the tenderis concerned with (the name of the project or the requiredequipment), the names of the tenderers, their tender prices, thesuccessful tenderer, his price, contract parties and the contractprice. If prequalification is carried out, the number of tenderers

12In cases that fall into (a),(b) or (c), the successful tenderer may be designatedaccording to the reference price ( even if a tender price exceeds the reference price,
the tender may be accepted within a certain amount) or comprehensive evaluation (thesuccessful tenderer shall be designated through comprehensive evaluation referring
to his goods’specifications, security, price and delivery schedule, based on theterms and conditions of the tender).
13
The highest tender price that is estimated to provide goods the most economically,prior to tender opening.

10

who have applied, as well as the qualified tenderers, shall also beannounced.
(10)

Rejection of All Tenders

1)

When the lowest tender offer is within the ceiling price, alltenders shall, in principle, not be rejected, except in the casewhere:
1 all tenders do not comply with the requirements in thetender documents;
2 it is clear that tenders competition is impeded; and3 it becomes clear during the tender procedure that there isa rational reason to believe that the aim of procurement
will not be achieved through the tender procedure.
2) In the case where all bids are rejected because the case falls
into 2 or 3, the condition to re-tender shall be decided upon after
having duly reviewed the causes for rejection and reconsidered
the general and/or technical and/or delivery specifications.

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3.

Procurement Contract(1)

GeneralThe procurement contract shall be agreed upon and concluded in
an appropriate and expeditious manner between the employer or
his representative and the successful tenderer in the stipulatedmanner based on the tender documents, and carried out
accordingly.

(2)Type of Contract
The procurement contract shall be made on the basis of a lumpsum or unit price. The procurement procedures for the contract
shall be in accordance with the regulated forms.

(3)

Contract
The contract shall be made based on the contents of the draft
contract attached in the tender documents, and shall state thefollowing:1) Date of Contract
The date the parties concerned formally sign the contract.
2) Contract PriceContract price agreed between the parties.
3) Rights and Obligations
Rights and obligations divided between the parties concerned.
4) Terms of Payment
The terms of payment such as the time of payment, the scope ofpayment and the method of payment (lump-sum payment orinstallment payment).
In case of installment payment, the amount to be paid in eachperiod shall be clearly stated.
5) Period of Execution
The period of execution such as delivery or shipment period of theequipment, and the date of completion of the works.
6) Performance Security
The performance bond and other performance security. In theevent that a performance bond is deposited by the supplier, thesaid performance bond shall be of an appropriate amount. Afterthe completion of the contract, the performance bond shall be
returned immediately to the supplier.

127) Force Majeure
Failure of the executing party to fulfill obligations under thecontract shall not be considered a default if such failure is theresult of an event of force majeure.
8) Applicable Law and Settlement of Disputes
The applicable law and organization taking care of disputes
between the parties concerned in the contract.

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Ⅲ

Supervision of Procurement

1. General
JICS shall supervise the progress of the project, and secure proper
management, use of the fund and proper implementation of the projectso that the goods to be procured will surely be manufactured,transported, and delivered or completed, communicating well with those
who are concerned. JICS shall evaluate the completed procurement asmuch as possible to ensure that the procured goods will be properly
utilized by the end-users.

2. Supervision of Performance
JICS shall supervise the performance of the parties concerned sothat the contract obligations, such as the delivery of the goods will be
performed in a sound manner from the date of contract until thecompletion of the said contract.

3. Confirmation of Performance Completion
JICS shall confirm that there is no discrepancy between theperformance of the supplier and the contents of the contract. To achieve
this aim, it is entitled to inspect the equipment where necessary andwill make an overall review concerning the trade terms, the specificcharacteristics of the procured goods, the intention of the employer, therequirements of the end-users, etc.

4. Evaluation of Completed Procurement and Follow-Up
JICS shall from time to time communicate with the recipient
countries and end-users in order to evaluate whether the procured
material is used in the most appropriate way, and if the population fully
benefits from it.

14