Abstract for: Management of Public Procurement of Information System

Developed countries’ national governments operates huge and complicated information systems in order for daily public services. In the United States, public officers can negotiate about procurement conditions in order to find not only the lowest price but also high quality. On the other hand, Japan, believed one of the developed countries, prohibits public officers from making negotiations when they procure any public materials and services. Today’s information systems are complicated; it is always challenging to express what to be implemented. Therefore, less communication including negotiations causes lower satisfaction of users, more expensive prices, and longer delivery time. From this viewpoints, Japan’s regulation controlling public procurement is not practical. Nevertheless, they do not plan to change the procedure shortly. This paper shows the reason that Japan’s law set such a strict procurement rule and explore problems using system dynamics models.