FACAO Conference irastimesFA amp曹会议irastimes.pptxVIP

BEST PRACTICES IN PROCUREMENT IN MINISTRY OF DEFENCE LIMITATIONS Discussion restricted to Capital Acquisition Largely relevant to Stores procurement HOWEVER We can adopt certain practices that suit : Both Works and Stores tenders Processing and decision making on Capital projects Specifications and standardization of scales Basic difference in Project sanction and Procurement Philosophy between MoD and MoR MoR MoD Project sanction and project acquisition are two distinct activities In MoD both are closely interlinked Same Rules exist for both Revenue and Capital Acquisition Different guidelines for Revenue and Capital Authority for Acquisition – Codes , Rules for entering into Supply contracts, large number of instructions Single Booklet termed Defense Procurement Manual (DPM) for Revenue Procurement and Defense Procurement Procedure (DPP) for Capital Acquisition. Same wings entrusted with both Capital and Revenue procurement Separate wings for Revenue and Capital procurement Project Sanction cycle In MoR Capital Projects are sanctioned annually , as part of annual budgetary exercise. MoD – Capital Acquisition projects sanctioned in the Ministry , on a monthly basis : No sanction power is delegated. SCAPCHC- Projects upto Rs. 150 Crores DPB- Projects between Rs 150-300 Crores DAC - All proposals over Rs 300 crores. BENEFITS Capital Acquisition planning is a regular activity unlike Railways where it is reduced to an annual activity and a budgetary exercise. There is possibility for review, discussion and remedy before final acceptance. All stakeholders get adequate time to respond and if need be, seek amendments. SUGGESTIONS A system of monthly examination of projects , to be consolidated in Pink Book for the Annual Budget. Will permit detailed examination and remediation before approval. Current practice of “CONVINCE OR PERISH “ disappears. Prerequisites for Processing Capital Acquisition Cases PLANNING SCALING SPECIFICATIONS MODE OF PROCURE