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(Revenue Procurement)

Defence Procurement Manual – 2006 (DPM 2006) is an updated version of DPM – 2005 which was promulgated to provide transparent requests for proposals, uniformity in interpretation of various contracting clauses and issues, clear timeframe for each stage and process of procurement to cut down on delays, general guidelines for assessing reasonability of prices and summary of CVC guidelines and banking instruments.

In DPM 2006, further measures taken by the Ministry of Defence in the light of the experiences gained during the last one year have been incorporated to make it a more effective and transparent document. Major highlights of DPM – 2006 are:-

  • Incorporation of GFR – 2005 provisions relating to Limited Tender Enquiry, Cash purchases limited, purchase through Propriety Article Certificate, price valuation clause and limits for advance payment.
  • Apportioning quantity to L2 and L3 when L1 does not have capacity to supply as per RFP requirement, at L1’s rate in line with CVC’s guidelines.
  • Re-floating tenders, when the Tender Evaluation Committee shortlists only one vendor, after reformulating Services Qualitative Requirement to ensure competitive bidding.
  • Providing level playing field to indigenous vendors vis-à-vis foreign vendors by comparing CIF price with indigenous vendor’s offer without Excise Duty, Sales Tax and local levies
  • Rate contract for common user items for three years to ensure economy of scale while providing safeguard provisions like fall clause and short closure in the event of fall in prices.
  • Reduction in repeat order quantity to 50% with such orders to be placed within six months while certifying no downward trend in prices. \The updated DPM is available at MoD website to ensure wide publicity and complete transparency in the defence procurement. With enhanced delegation of financial powers to the Services, the document seeks to strike a fine balance between pragmatism in the procurement process with compliance to basic financial and propriety norms, Services’ Quality requirements and timely supply of revenue stores. 
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