Major changes proposed in India's defence procurement policy

The Indian ministry of defence has begun seeking proposals from various stakeholders suggesting changes to the Defence Procurement Procedures(DPP) 2011 for incorporation in the 2012 edition. According to Indian media reports, the Indian Air Force has proposal 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. It has also sought that the ‘Buy (Indian)’ category of the DPP should have at least 50 per cent indigenization instead of the present 30 per cent and for ‘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 IAF has also suggested changes in the way field evaluation trials are held. It now wants the ‘vendors’ to provide a complete list of “optional equipment,” at the time of responding to the RFP. The force has also sought that the defence ministry should ensure that the sellers are not allowed to submit any additional data pertaining to the trials, after the trials are over. To plug a loophole in the procurement process the IAF wants the vendors to be asked to submit an illustrated spare parts catalogue in the standard contract document itself. This catalogue, IAF says, should have the base price and pricing mechanism for subsequent purchase of spares in the life cycle of the equipment.