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**snova** · 03-15-2012, 02:40 AM

Delay in Defence Purchases

Acquisition of weapons and equipment for defence forces is a complex activity and is carried out in accordance with the provisions of Defence Procurement Procedure (DPP). As per broad timeframe given in DPP, it takes about 80-137 weeks to complete the various stages of procurement and conclude the contract. However, delays sometimes occur in procurement cases due to several reasons, such as insufficient and limited vendor base, non¬conformity of the offers to the Request of Proposal (RFP) conditions, field trials, complexities in contract negotiations and long lead time for indigenization etc. Defence acquisitions are normally based on fixed price contracts. There are contractual provisions for penalties including imposition of liquidated damages for delay in execution of contracts.

To counter systemic and institutional delays, procedures are continuously reviewed and refined on the basis of experience gained during the procurement process.

This information was given by Minister of Defence Shri AK Antony in a written reply to Shri PiyushGoyal in Rajya Sabha today.

03-15-2012, 02:40 AM	#15
snova Join Date Oct 2005 Posts 432 Senior Member	Delay in Defence Purchases Acquisition of weapons and equipment for defence forces is a complex activity and is carried out in accordance with the provisions of Defence Procurement Procedure (DPP). As per broad timeframe given in DPP, it takes about 80-137 weeks to complete the various stages of procurement and conclude the contract. However, delays sometimes occur in procurement cases due to several reasons, such as insufficient and limited vendor base, non¬conformity of the offers to the Request of Proposal (RFP) conditions, field trials, complexities in contract negotiations and long lead time for indigenization etc. Defence acquisitions are normally based on fixed price contracts. There are contractual provisions for penalties including imposition of liquidated damages for delay in execution of contracts. To counter systemic and institutional delays, procedures are continuously reviewed and refined on the basis of experience gained during the procurement process. This information was given by Minister of Defence Shri AK Antony in a written reply to Shri PiyushGoyal in Rajya Sabha today.
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