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This story is from October 21, 2020

New DRDO procurement manual to boost domestic industry participation

New DRDO procurement manual to boost domestic industry participation
Rajnath Singh
NEW DELHI: Defence minister Rajnath Singh on Tuesday released a new Defence Research and Development (DRDO) procurement manual to encourage more participation of the Indian industry, including start-ups and MSMEs.
“The new DRDO manual will facilitate the indigenous defence industry by simplifying the processes and ensure their participation in design and development activities.
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It will help towards realizing PM Narendra Modi’s dream of ‘Atmanirbhar Bharat’,” said Singh.
DRDO chief Dr G Satheesh Reddy, in turn, said, “The manual will be a boon to the indigenous industry and also ensure swift procurement processes with lots of simplifications. It will also facilitate faster execution of R&D projects and programmes.”
The new measures in the manual include bid security declaration option for earnest money deposit, increase of threshold limit for advance payment and placement of order on lowest bidder-2 (L-2) if the L-1 backs out.
“Other enabling measures are exemption of bid security and performance security up to Rs 10 lakh, no negotiations for commercial off-the-shelf items and services wherever price discovery happens through market forces,” said an officer.
The liquidated damages (LD) rate for development contracts has also been reduced in the manual, while the delivery period extension process has been simplified for faster decision making. “Many of the internal procedures have also been further simplified for faster engagement with industry,” he added.
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