DRDO releases new procurement manual to boost Industry participation

By Sarkaritel October 21, 2020 18:30

New Delhi, Oct 21  Defence Minister Rajnath Singh on Tuesday released the Procurement Manual 2020 for the Defence Research and Development Organisation (DRDO). This move is aimed at encouraging more participation by Indian industry, including start-ups and Micro, Small and Medium Enterprises, in research and development (R&D) for achieving self-reliance.

Singh said,”The new DRDO procurement manual will facilitate the indigenous defence industry by simplifying the processes and ensure their participation in design and development activities.”

He lauded the contribution of all the DRDO officials and the finance wing in the Defence Ministry for their contribution in bringing out the revised procurement manual.

The procurement manual will facilitate faster execution of R&D projects and programmes. The modified features of the manual will go a long way to facilitate participation of industry in various R&D projects.

Bidding security declaration option for earnest money deposit, increase in threshold limit for advance payment, placement of order on second lowest bidder in case the first lowest bidder backs out are some of the salient features of the new manual, which will assist the industry in the speedy execution of projects.

The other measures outlined in the manual are exemption of bid security and performance security upto Rs 10 lakh, no negotiations for commercial off-the-shelf items or services wherever price discovery happens through market forces.

“Performance security for service contracts is linked to the payment cycle instead of contract value. Procurement of stores from development partners, safeguarding free issue material through insurance cover instead of bank guarantee are the other facilitating measures adopted to help the industry,” the Defence Ministry said.

In the new manual, the liquidated damage rate for development contracts has been reduced. The delivery period extension process has been simplified for faster decision-making. Many of the internal procedures have been simplified further for faster engagement with industry. The previous procurement manual of the DRDO was last modified in 2016.

By Sarkaritel October 21, 2020 18:30

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