doing business with defence: uk mod · 2 uk industry’s largest single customer around £21bn...

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Doing Business With Defence: UK MOD

John Kite

MOD Commercial - Supply Chain Development

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UK industry’s largest single customer

Around £21Bn spend in FY 18/19 with over 16,000 suppliers

Planned spend of £186Bn on equipment and support in the next decade

Majority of opportunities to do business with defence exist in our supply chain

Defence procurement key facts

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Defence Equipment & Support

Defence Infrastructure Organisation

Information Systems & Services

Crown Commercial Service

Defence Science &Technology

Laboratory

Our procurement organisations

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Our Strategic Suppliers

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Our Procurement Approach

• Our procurement processes are based on the

principles of fair and open competition and

reflect existing EU Procurement Directives

• The Public Contracts Regulations and Defence

and Security Public Contracts Regulations will

still exist after Brexit

• Several different procedures for use in different

circumstances

• We use competition as our default position and

do not operate preferred supplier lists

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A typical MOD tender process

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Top Tips for SMEs

• Build below the threshold <£100K

• Be part of the conversation – look out for

Market Engagement events

• Answer the exam questions!

• Provide evidence to substantiate your bid

• Top Tips for Tendering

• via DCO at www.contracts.mod.uk

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Where to find our procurement opportunities

Defence Contracts Online www.contracts.mod.uk

Contracts Finder

www.gov.uk/contracts-finder

● wider government opportunities

● includes Crown Commercial Services

Visit defence contractors’ websites

Follow us on Twitter @defenceproc

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Contact

Doing Business with Defence

helpdesk:

DBSCS-ECFinanceTeam@mod.uk

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Sub-contract advertising

• Improve visibility of opportunity - in one place

• Attract new, innovative, non-traditional suppliers

• A more diverse supply chain

• Helps to stimulate the market – widen the net

• Greater innovation and value for money

• Good for your reputation as a defence supplier

• And it’s free to use!

We’re encouraging

major suppliers to

advertise sub-contract

opportunities on

www.contracts.mod.uk

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SME Action Plan

Strengthen our supplier engagement

Improve procurement policy and process

Make it easier to do business with defence

Encourage innovation

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Innovation

• We want to encourage innovation and attract new and non-traditional suppliers to Defence

• Sources of funding for innovation via competitions include:

• Defence and Security Accelerator

• Innovate UK

Small Business Research Initiative (SBRI)

Open Call for Innovation

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Prompt Payment

• Bidders on government contracts will be required to

provide evidence of their payment performance

• Suppliers will need to pay 95% of invoices within 60

days or risk being excluded from bidding

• Initial threshold is 75% - action plan required

• https://www.gov.uk/check-when-businesses-pay-

invoices

New policy to ensure

that suppliers benefit

from being paid on time

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United Kingdom National Codification Bureau

• UKNCB - the sole authority within the UK for

NATO Codification

• Can provide a NATO Stock Number to aid the

marketing and sales of UK Industry’s products

• Benefits:

Get your product added to the catalogue

Key enabler to sell defence exports

A UK NSN has a positive marketing effect

• For more information and to codify products, visit:

www.ncb.mod.uk

NATO Codification in

aid of export sales

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Preparing your business for Brexit

The UK is leaving the EU. Leaving the

EU means your business or organisation

may need to prepare for change.

For more information, help and guidance

please visit:

https://euexit.campaign.gov.uk

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Questions