Defense Ministry promulgates new Defence Procurement Procedure

With the aim to enhance transparency and probity in defence purchases and to give a boost to indigenous industries, the Ministry of Defense (MoD) has promulgated a new procedure- The Defence Procurement Procedure (DPP) 2013.
What are the key features of DPP 2013?

• The Defence Procurement Procedure (DPP) 2013 aims to balance the competing requirements of expediting capital procurement, developing a robust indigenous defence sector and conforming to the highest standards of transparency, probity and public accountability, while laying a strong emphasis on promoting indigenisation and creating a level playing field for the Indian industry.
• The new procedure gives the first right of refusal to Indian vendors to promote indigenous industry.
• To give impetus to indigenization, higher preference explicitly to the Buy [Indian], Buy and Make [Indian] and Make categorisation, besides bringing further clarity in the definition of the ‘Indigenous Content’ and simplifying the Buy and Make [Indian] process.
• To expedite procurement procedure, the new policy has slashed the validity of Acceptance of Necessity (AoN) from two years to one year with a stipulation to freeze the Service Qualitative Requirements before the accord of the AoN.
• Any request for extending the timeline for submitting bids will have to be made two weeks prior to the bid submission dates. This has been done in order to encourage timely submission of the bids by the vendors and to discourage last minute requests for extension of time.

Month: Current Affairs - June, 2013