The Defence Acquisition Procedure (DAP 2020), which supersedes the Defence Procurement Procedure 2016 (DPP 2016), is a sincere effort by the Ministry of Defence to improve the capital procurement procedure.
The OCPP is a mix of revenue and capital procurement procedures, based on the Defence Procurement Manual 2006. It could have been an opportunity to lay down a more self-contained procedure.
Raising the FDI limit by itself may not enthuse the foreign investors as per the expectations. To make the defence sector more attractive for foreign investment, a whole lot of other related issues will have to be addressed by the government.
It would be helpful if MoD issues a formal order addressing the concerns expressed by various stakeholders about certain aspects of the negative list, especially its impact on projects that involve foreign OEMs and the purpose of bifurcating the capital budget.
The changes proposed in the offset guidelines require a fresh look, both on conceptual and empirical grounds, as the new regime is likely to yield diminishing returns.
Although the new measures announced to fast-track the defence sector are significant, they do not add up to a comprehensive and overarching reforms package.
Inclusion of new clauses in the draft DPP-2020 and changes made in some of the existing ones are intended to make the SCD more comprehensive. However, there is a scope for bringing about textual clarity in the new as well as some of the existing clauses of the SCD, especially those which have been modified.
Redrafting the chapter on post-contract management, expatiating the concept of contract operating officers and clearly defining their role and responsibilities vis-à-vis the other agencies, could go a long way in serving its purpose.
It would be advisable to review the proposed offset guidelines keeping in view the feedback from the industry, especially the foreign vendors who carry the primary obligation to execute the offset contract, as also the legacy issues.
Decoding Defence Acquisition Procedure 2020
The Defence Acquisition Procedure (DAP 2020), which supersedes the Defence Procurement Procedure 2016 (DPP 2016), is a sincere effort by the Ministry of Defence to improve the capital procurement procedure.
Other Capital Procurement Procedure: A Chip off the Old Block
The OCPP is a mix of revenue and capital procurement procedures, based on the Defence Procurement Manual 2006. It could have been an opportunity to lay down a more self-contained procedure.
Increase in FDI Cap Alone Not Enough for Defence Sector
Raising the FDI limit by itself may not enthuse the foreign investors as per the expectations. To make the defence sector more attractive for foreign investment, a whole lot of other related issues will have to be addressed by the government.
Impact of Embargo on Defence Imports
It would be helpful if MoD issues a formal order addressing the concerns expressed by various stakeholders about certain aspects of the negative list, especially its impact on projects that involve foreign OEMs and the purpose of bifurcating the capital budget.
Should MoD Persist with Defence Offsets?
The changes proposed in the offset guidelines require a fresh look, both on conceptual and empirical grounds, as the new regime is likely to yield diminishing returns.
Expediting Negotiation in Defence Contracts
Finetuning negotiation protocols and limiting the scope of negotiations could result in rapid conclusion of negotiations and contract finalisation.
Defence Sector Reforms: A Long Haul
Although the new measures announced to fast-track the defence sector are significant, they do not add up to a comprehensive and overarching reforms package.
Draft DPP-2020: Standard Contract Document
Inclusion of new clauses in the draft DPP-2020 and changes made in some of the existing ones are intended to make the SCD more comprehensive. However, there is a scope for bringing about textual clarity in the new as well as some of the existing clauses of the SCD, especially those which have been modified.
Draft DPP 2020: Post-Contract Management
Redrafting the chapter on post-contract management, expatiating the concept of contract operating officers and clearly defining their role and responsibilities vis-à-vis the other agencies, could go a long way in serving its purpose.
Draft DPP 2020 - Legacy Issues in Offset Guidelines
It would be advisable to review the proposed offset guidelines keeping in view the feedback from the industry, especially the foreign vendors who carry the primary obligation to execute the offset contract, as also the legacy issues.