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ACQUISITION   R E F O R M By  Japan Defense Agency    May, 1996 Establishment ACQUISITION   R E F O R M By  Japan Defense Agency    May, 1996 Establishment of Acquisition Reform    Committee (ARC) in JDA June, 1998 ARC Final Report April, 1999 Defense Procurement Reform(DPR)    Report by JDA 

ARC Final Report (June, 1998) Ⅰ  Measures to be implemented corresponding to the   phase of ARC Final Report (June, 1998) Ⅰ  Measures to be implemented corresponding to the   phase of equipment life-cycle (a)  Research and Development phase (b)  Procurement phase (c)  Maintenance and Repair phase    Ⅱ  Measures to be implemented as a whole of the   life-cycle of equipment (a)  Simplify the government procurement procedures   (b)  Making efforts to reduce costs in industries (c)  Promotion of CALS

Fig. 1 Cost Reduction in the phase of R&D [Price per a group at Fig. 1 Cost Reduction in the phase of R&D [Price per a group at the New medium-range surface to air missile stage of mass-production] At the beginning of R&D 68. 3 Division-integrated communication system FY 2000 →  59. 9 bil. Yen   [Total value(7 sets)] Current system 47. 7 Improved system → 40. 6 bil. Yen   [value per a year] Small armored vehicle FY 1994 3. 5 FY 2000 →   3. 2 bil. Yen  

Fig. 2 The Ratio of Competitive Contracts   and Non-Competitive Contracts On the base of Fig. 2 The Ratio of Competitive Contracts   and Non-Competitive Contracts On the base of fiscal amount (%) Competitive contract (Open Bid and Limited Bid) (Right Scale) 90 80 FY 1999 20 10 Non-competitive contract (Sole Source Contract) (Left Scale) 1998 (%) 2000

Fig. 3 Unit Price of Major Equipment (mil. yen) Price in FY 1997 774 Fig. 3 Unit Price of Major Equipment (mil. yen) Price in FY 1997 774 Type-90 Tank Price in FY 2000  681   26, 712( FY 1998) 4, 600 ton DD(Hull)  24, 413   Intermediate-level      Jet trainer(T-4)(air frame) 1, 484  1, 444  Multi-purpose helicopter( UH-1 J)(air frame) 899   677  154 CH-47 IRAN(air frame)   143 

Fig. 4 Total Number of Defense Specifications(DSPs) and National Defense Standards(NDSs) Number 5, 000 Fig. 4 Total Number of Defense Specifications(DSPs) and National Defense Standards(NDSs) Number 5, 000 DSPs ~~~~ NDSs 2, 000 1, 500 (estimated) 1, 000 500 1972・・・ 1987・・・ 1996 1997 1998 1999 2000 2001 FY

Fig. 5 The Relation between ISOs and DSPs (1987) ISO 9001(9002) (1982) DSP Z Fig. 5 The Relation between ISOs and DSPs (1987) ISO 9001(9002) (1982) DSP Z 9001(9002) (1997,1998) DSP Z 9005(9006) (mini DSPs) A Contractor Can Choose either DSP Z 9001(9002)     or  ISO 9001 (9002) + DSP Z 9005(9006) +