The MoD has reportedly commenced seeking proposals from various stakeholders suggesting changes to the Defence Procurement Procedures(DPP) 2011 for incorporation in the 2012 edition. IAF has proposed that:-
- the validity of commercial bids which now stand at 19 months from the date of submission should be increased to 30 months from the date of the issue of the RFP.
- the ‘Buy (Indian)’ category of the DPP should have at least 50 per cent indigenization instead of the present 30 per cent.
- the ‘Make’ category, which now has no stipulation about the prescribed quantum of indigenisation, should have at least 60 per cent indigenous content on cost basis at the production stage.
- the ‘vendors’ to provide a complete list of “optional equipment,” at the time of responding to the RFP.
- the sellers are not allowed to submit any additional data pertaining to the trials, after the trials are over.
- the vendors to be asked to submit an illustrated spare parts catalogue in the standard contract document itself. This catalogue should have the base price and pricing mechanism for subsequent purchase of spares in the life cycle of the equipment.
- the way field evaluation trials are held be changed as per certain suggestions given by them.
A defence plan has a fixed span of 5 years while Annual Acqusition Plans are permitted to be completed in two consecutive years. Repeated iterations of DPP have led to a certain maturity in the procurement policy. At this juncture it comes to mind that do we really require an annual review of DPP now? Should we go in for a new version once in two years or even once in five years? Are IAF’s recommendations acceptable by the taxpayer? Are the recommendations made purely for the comfort of Air HQ or they would serve a justifiable purpose, if implemented? Do these suit other Service Headquarters?
I look forward to a an informed debate and real recommendations to enable framing of a taxpayers view.
Blog Editor
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