assessment of the product's value over its life cycle. This ensures buyers the flexibility to select products based on the most favorable combination of price and performance.Japanese central government entities use OGVM in selecting medical equipment valued above the established thresholds, and have found the methodology to be very effective in procuring the kinds of equipment they need to provide quality medical care to their patients. Prefectural and municipal hospitals, however, are obligated under Japanese law to use exclusively the lowest-bid procedure of evaluation. This hinders the ability of U.S. companies to sell in this significant portion of the Japanese market. Under the agreement, the Japanese Government is required to encourage prefectural and local governments to utilize measures similar to those adopted by the central government entities. The Ministry of Home Affairs, the agency responsible for the applicable laws on government procurement, has shown little inclination to undertake necessary legal measures to allow prefectural and local governments to use OGVM in bid evaluation. The American Chamber of Commerce in Japan has filed a complaint with the Office of the Trade Ombudsman requesting the Japanese Government revise the relevant Cabinet order to permit the use of OGVM in bid evaluation by local and prefectural entities. As a result of Japanese Government inaction, the United States has raised this issue under the Enhanced Initiative on Deregulation.While Japan's implementation of the Arrangement requires further improvements, the United States considers that Japan is demonstrating a general adherence to the intent of the arrangement to provide greater market access and sales in its government procurement sector. The United States will use the next review to press for greater transparency, strict compliance with arrangement provisions, and seek the expanded use of overall greatest value methodology through increase...
