DEFENCE PROCUREMENT PROCEDURE AND THE DEFENCE PROCUREMENT MANUAL AUG 2006

General

1. As part of the implementation of the report of the Group of Ministers on reforming the National Security System, new Defence Procurement Management Structures and Systems were set up in the Ministry of Defence (MoD) vide MoD order No SA/01/104/2001 dated 10 September 2001 and No 17179/2001-Def Secy/IC/2001 dated 11 October 2001. In order to implement the provisions laid out in the new Defence Procurement Management Structures and Systems, the procedure for Defence Procurement laid down vide MoD ID No 1(1)/91/PO (Def) dated 28 February 1992 was revised. The Defence Procurement Procedure – 2002 (DPP-2002) came into effect from 30 December 2002 and was applicable for procurements flowing out of ‘Buy’ decision of Defence Acquisition Council (DAC). The scope of the same was enlarged in June 2003 to include procurements flowing out of ‘Buy and Make through Imported Transfer of Technology (TOT)’ decision. The Defence Procurement Procedure – 2002 (version June 2003), has been reviewed and modified based on experience gained in implementation. This procedure, named the Defence Procurement Procedure – 2005, is set out in the succeeding paragraphs.

Aim

2. The objective of this procedure is to ensure expeditious procurement of the approved requirements of the Armed Forces in terms of capabilities sought and time frame prescribed by optimally utilising the allocated budgetary resources. While achieving the same, it will demonstrate the highest degree of probity and public accountability, transparency in operations, free competition and impartiality. In addition, the goal of achieving self-reliance in defence equipment will be kept in mind.

Scope

3. The Defence Procurement Procedure – 2005 (DPP-2005) will cover all Capital Acquisitions, (except medical equipment) undertaken by the Ministry of Defence and Defence Services both from indigenous sources and ex-import. Defence Research and Development Organisation (DRDO), Ordnance Factory Board (OFB) and Defence Public Sector Undertakings (DPSUs) will, however, continue to follow their own procedures for procurement.

Please click the link below for complete Defence Procurement Procedure, and Defence Procurement Manual 2005 with updated Corrigendums, corrections and expplanations:

Updation of the Defence Procurement Procedure and Release of the Defence Procurement Manual in Aug 2006

The Procedure has been further updated in Aug 2006, and the Manual released.