What is DPM 2009?
The Defence Procurement Manual (DPM) 2009 is a document issued by Ministry of Defence which lays down procedural guidelines / instructions for procurement to be undertaken by various Departments (Including Army, Navy & Air Force) from the Revenue Expenditure Head. This manual supersedes the DPM 2006, issued earlier.
The DPM 2009 is a very detailed document which is based on the General Financial Rules 2005. Although the General Financial Rules 2017 have been issued by the government, the DPM 2009 is yet to be superseded and remains current. A supplement to the DPM 2009 was issued in 2010, which amended certain provision of the DPM 2009 and gave amplifications on some other provisions. This supplement has to be read in conjunction with the provisions of the DPM 2009. The drafts for revision of DPM have been made on 2-3 occasions however these are yet to be promulgated. In order to align the DPM 2009 with GFR 2017, the GoI has instructed that in case any provision of the DPM 2009, or any departmental instruction is in contradiction to the GFR 2017, then the later shall prevail.
Almost 90 % of procurement tenders issued by the Defence Forces / Ministry of Defence are with respect to the procedures specified in the DPM 2009. Therefore in case a Business entity desires to participate in tender issued by these organizations, then it is imperative for them to become familiar with the provisions of DPM 2009 & Supplement 2010 to DPM 2009.
The DPM 2009 covers all aspects of Domestic & Foreign Procurement, through Revenue Head. The DPM starts by laying down the definitions for the terms used in Defence parlance of procurement.
Chapter-2 lays down the OBJECTIVE AND POLICY of Procurement.
Chapter-3 : SOURCING AND QUALITY
Chapter-4 : TENDERING
Chapter-5: APPROVAL PROCESS AND CONCLUSION OF CONTRACT
Chapter-6 : CONTRACT
Chapter-7 : CONDITIONS OF CONTRACT
Chapter-8 : RATE CONTRACT
Chapter-9 : PROCUREMENT OF GOODS AND SERVICES FROM FOREIGN COUNTRIES
Chapter-10. : STANDARD CONDITIONS OF CONTRACT - FOREIGN PROCUREMENT
Chapter-11 : REPAIR CONTRACTS WITH FOREIGN AND INDIGENOUS FIRMS
Chapter-12 : BANKING INSTRUMENTS
Chapter-13 : EVALUATION OF QUOTATIONS AND PRICE REASONABILITY
Chapter-14 : OFFLOADING OF PARTIAL/ COMPLETE REFITS/REPAIRS OF SHIPS/ SUBMARINES/CRAFTS/ASSETS TO INDIAN PSU/PRIVATE SHIP YARDS/TRADE
Chapter-15 : DESIGN, DEVELOPMENT AND FABRICATION CONTRACTS
In addition a number of instructions / amplifications have been issued by the Controller General of Defence Accounts (CGDA). These are also to be adhered to in consonance with the DPM 2009. The DPM therefore covers all procurements under Rate Contract, GeM Portal, Local Procurement & Advertised Tender Enquiry. It even has provision for the Design & Development Cases, Manufacture by Ordnance Factories / Army Base Workshops & Ship building of the Indian Navy.
However Business entities / Sellers do not have to bother too much about these provisions since for them the only document that really matters is the Tender Document / Request for Proposal / Request for Information. Only the scope of the Tender issued by the Ministry / Departments would require to be adhered to by the Buyer & the Seller. The seller merely has to ensure his compliance with the tender document.
Conclusion The DPM 2009 is an exhaustive document issued by the Ministry of Defence to specify the procurement procedure for Revenue Expenditure. It is to be read in conjunction with the provisions / amendments vide Supplement to DPM issued in 2010 and instructions of CGDA / Internal instructions of the Department of Government. The DPM is the document based on which over 90% of the tenders are issued by the Ministry of Defence on their web site https://defproc.gov.in/
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