The Defence Acquisition Council (DAC) on Tuesday approved several amendments to the Defence Procurement Procedure (DPP) 2016 to reduce time lines and streamline the process and also approved procurement of 1,000 engines for the Army’s T-72 tanks.
“The T-72 tanks are of 1,000 BHP to be procured under ‘Buy and Make’ category. Post transfer of technology most of these engines will be manufactured by Ordnance Factories Board,” the Defence Ministry said in a statement.
Time period
The major change to DPP is limiting the time period for executing repeat order to five years after date of completion of warranty of final delivery in the previous contract. Other amendments include permission to commence benchmarking of cost for equipment immediately on receipt of the trial report in the Service headquarters, legislating provisions for exchange rate variations when pursuing procurement with an ‘Option Clause’ among others.
The DAC also approved doing away with bank guarantee for certain essential parameters if the same are trial evaluated during field evaluations trials.
