defence suppliers’ service 1 philip margerison dss presentation selling to the mod email:...

Defence Suppliers’ Service1

Defence Suppliers’ Service

PHILIP MARGERISONDSS PRESENTATION

SELLING TO THE MOD

Email: [email protected]

Tel: 030 679 32844/32843/32832

Website: www.contracts.mod.uk


What MOD spends to provide and sustain military capability

• In FY 2013/14 approx. £20.4Bn spent with third parties on a wide range of products & services – amounts to 40-45% of total Government spend with third parties

• Direct spend with SMEs in FY 2013/14 of £916M with over 7,000 different SMEs

• This does not include business that SMEs have with MOD suppliers



Contracts placed:

In FY 2013/14 approximately 2,300 new contracts

• 60% valued at less than £100K

• 7,500 contractors with extant contracts

• Over 1,000 Commercial Officers in the overall MOD acquisition

organisation


National Security through Technology: Technology, Equipment & Support for UK Defence and Security

• White Paper published early February 2012

• Section devoted to SMEs – important aim is to make it easier for them

to do business with UK MOD


Package of Measures to Increase Opportunities for SMEs to Participate in Government Procurement

• Appointment of dedicated Crown representative for SMEs

• Adopted new common core PQQ – working towards Government aim of minimising use of PQQs for lower value requirements

• Greater use of ‘lotting’ strategies and outcome-based specifications

• A ‘mystery shopper’ service so businesses can tell Government where there are still issues

• Creation of an SME panel

• Flagging of opportunities that may be suitable for SMEs


Package of Measures to Increase Opportunities for SMEs to Participate in Government Procurement

• Revise guidance to ensure SMEs are not rejected at pre-qualification on rigid basis of turnover-to-contract value ratios without proper assessment of company’s actual capacity and potential.

• Use e-procurement to roll out simplified, streamlined contract templates for lower value procurements – reducing volume of paperwork & improving consistency.

• Expand utilisation of e-procurement system to speed up invoicing & billing – will benefit SMEs particularly for whom cash flow is critical.

• New round of engagement with SMEs & relevant Trade Associations to better understand the blockers, opportunities & potential solutions.

• Ask major prime contractors to advise on steps they will take to increase SME participation

in supply chain for Government contracts.


The Defence Equipment Plan

• Published January 2013

• Planned spend of £159Bn for new equipment, data systems and equipment support over 10 year period

• Combat Air sector – planned spend £18.5Bn – covers fast jets; Unmanned Aerial Vehicles; military flying training and procurement of training aircraft

• Air Support sector – planned spend £13.9Bn – covers all large aircraft, including transport, air-to-air refuelling and large ISTAR platforms

• Helicopter capability - planned spend of £12.1Bn – completion of Wildcat programme; Puma Life Extension programme; purchase of additional 14 Chinook helicopters

• ISTAR – planned spend of £4.4Bn on ISTAR programmes over next decade


The Defence Equipment Plan• Land Equipment – planned spend of £12.3Bn – upgrade of Warrior Infantry Fighting

vehicles, continued development of family of Future Rapid Effects System (FRES) vehicles, including Scout and Utility variants

• Ships – planned spend of £17.4Bn – completion of the 2 QE class aircraft carriers; delivery of remainder of 6 Type 45 destroyers; design & development of Type 26 Frigates; development of Maritime Afloat Reach and Sustainability programme

• Submarines and Deterrent – planned spend of £35.8Bn – completion of remainder of Class 7 Astute attack submarines; replacement of Vanguard class submarines

• Weapons – planned spend of £11.4Bn on various weapons programmes

• Full Defence Equipment Plan available at: https://www.gov.uk/government/publications/the-defence-equipment-plan-2012


Defence Growth Partnership

• Launched Autumn 2013

• Govt & industry partnership to secure a thriving UK defence sector, delivering security, growth & prosperity

• Work together to develop new opportunities

• Delivering growth through innovative & tailored solutions for customers around globe

• DGP – opportunity for companies at all levels of UK industrial value chain to participate

• Contact: [email protected]


Crown Commercial Services• Created to act on behalf of Crown & drive further savings for taxpayer• Improve quality of commercial & procurement activity across public sector• 22 categories of common goods & services• MOD already involved in 9 of these & in FY 2012/13 processed £1.4Bn through CCS arrangements• First wave of MOD transition plan focused on 4 categories

- Consultancy & Contingent Labour (CCL)- Energy (gas, electric & fuels)- Fleet- Certain commodity elements of IT hardware & software & existing Information Assurance scope

Customer Support: 0345-410-2222

Supplier Support: 0345-010-3503

Customer Service Desk: [email protected]

Supplier Service Desk: [email protected]

Website: https://ccs.cabinetoffice.gov.uk


MOD Procurement Policy

Obtaining value for money through:

• Whole life costs

• Performance

• Delivery

• Quality


Approach

• Reasonable Opportunities to Compete

• Impartiality & Consistency

• Confidentiality

• EU Public Procurement Regulations

• Advertise Requirements


Acquisition Strategy

• Currently approximately 100 acquisition teams within DE&S

• Effective & transparent audit trail

• Approved at appropriate level for costs – Initial Gate and Main Gate approval (for requirements above £20M)

• Explanation of most cost effective solution

• Assessment of risks and benefits involved

• Include ‘exportability’ options

• Industry Days – ‘Announcements’ section of MOD DCB/DCO


Competitive Tendering

• Competition preferred procurement route wherever feasible or possible

• Vendor assessment and pre-qualification techniques

• Prospective bidders limited to around six


Tender Criteria

• Third party Quality Assurance certification

• Financially sound

• Managerial capability

• Technical competence


Supplier Selection

• Generally no more than 6 suppliers in competition

• Expressions of interest from industry

• Pre-Qualification Questionnaires (PQQs)

• Objective evaluation of relevant factors

• MOD encourages approaches from consortia of small companies that may be better able to offer a solution & accept the risk than individual SMEs

• MOD requirement for Consortia to have a proper legal identity as a basis for receiving a contract

• But – sometimes there is only one supplier


Non-Competitive Contracts

• Pricing agreed prior to contract placement

• No Acceptable Price, No Contract (NAPNOC)

• Mandatory for all non-competitive £1M+ contracts

• Approx £3.19Bn non-competitive contracts placed in FY 2013/14

• All non-competitive requirements advertised in MOD DCB for possible sub-contract opportunities


The Tender Process

• Formal invitation to tender

• Clear documentation, evaluation criteria and weightings

• Clarification questions

• Bidders conferences

• Tenders submitted through independent Tender Board

• Tenders assessed

• Tender Assessment panel evaluate against pre-agreed criteria


Contract Award Criteria

• Technical & contractual compliance

• Clear-cut decision

• Down-selection process may be necessary

• Negotiation may be necessary

• Winning and losing bidders normally informed at the same time

• Debrief available


Defence & Security Industrial Engagement PolicyPolicy aims:

Principal aim:

to enhance the capability of the UK’s defence and security industry by encouraging overseas-based companies to engage with UK companies and other institutions

Achieved through:

• Export through supply chain activity

• R&D

• Investment

• Technology transfer

E: [email protected]; Tel: 0117-91-30271


Commercial Toolkit

• Available to MOD staff & industry

• Contains guidance on a wide range of commercial policy topics, DEFCONs,

DEFFORMs etc

• www.gov.uk/acquisition-operating-framework (free use, requires no-cost

registration)

• Commercial Toolkit;

https://www.aof.mod.uk/aofcontent/tactical/toolkit/content/defcons/defcon.htm

• Select either ‘Guidance Topics’; ‘DEFCONs’ or ‘DEFFORMs’

• Also see ‘Winning the Contract’ course www2.learndirect-business.com/business-

courses/winning-the-contract/


Advertising MOD’s Requirements

MOD routinely advertises:

• All its competitive and non-competitive, ‘warlike’ and ‘non-warlike’ requirements for

goods & services valued at £10,000 and above are advertised free of charge,

on the Defence Contracts Online (MOD DCO) portal (www.contracts.mod.uk)

• MOD DCB magazine available on subscription starting at £295 pa

• Requirements which meet the relevant criteria also advertised in Official Journal of

the European Union (OJEU) and ‘Contracts Finder’ portal as well as on the MOD

DCO portal

• MOD requirements valued at below £10K are not advertised centrally and are

generally procured on a local or regional basis


European Procurement Law

• All public procurement in the UK subject to Treaty on the Functioning of the

European Union (TFEU)

• Principles are:

- Non-discrimination (on grounds of nationality)

- Equal treatment (of all suppliers in any procurement context)

- Transparency (so that all parties can see that MOD is acting in a fair and non-

discriminatory manner)

- Mutual recognition (of equivalent documents, standards and certificates from

other EU Member States)


24



• Contract Notices

• Contract Bidders’ Notices

• Competitive/Non-competitive Contract awards

• Sub-Contract Opportunities

• Addendum


Guide to Contract Notices

Contract NoticesIdentification number

Expressions of Interest deadline Issuing branch

SummaryQA Standards



Contract Bidder

Tender No.

ITT Issue Date

Deadline

Issuing Branch

Summary of Requirements

Issued To



Non-Competitive Contract Awards

Issuing Branch


Contract No.

Awarded To

.



Competitive Contract awards

Issue date

Issuing branch


Awarded to



Addendum

Contract/ITT number

Summary

Advertised in



Supplier Information Database (SID)

• SID accessed via www.contracts.mod.uk website

• Companies can submit their profiles free of charge

• SID available to MOD acquisition staff as a resource to help draw up a tender list/source a product or service

• Over 8,000 companies have submitted their profiles to the SID

• By logging their profile on the SID, it does not guarantee that companies will be invited to tender for MOD requirements


Dynamic Pre-Qualification Questionnaire (DPQQ)

• Launched in September 2013 as part of MOD DCO portal (www.contracts.mod.uk)

• Allows MOD commercial staff to create an electronic PQQ – issued as part of contract notice

• Potential suppliers will express an interest in the requirement by completing DPQQ on line

• Saves up to 28 days by combining two parts of procurement procedure

• Reduces effort to create a PQQ & to complete a PQQ as suppliers can store information on their capabilities on MOD DCO portal


Contracts Finder Portal

• Cabinet Office agreed ‘Contracts Finder’ portal to host tender & contract documents & live contract opportunities

• ‘Contracts Finder’ portal publish all Central Government contracting opportunities above £10,000

• ‘Contracts Finder’ portal – free to use; easy search facility; provide free e-mail alerts

• ‘Contracts Finder’ portal launched on 11 February 2011

• Accessed via www.contracts-finder.co.uk


DEFENCE SUPPLIERS’ SERVICEPart of Supplier Relations Team (SRT)

Help Desk



Tel: 030 679 32844/32843



• Explain UK MOD Procurement & Procedure

• Provide Information brochure

• Provide Product requirement advice

• Provide Contact points


21st Century Supply Chain (SC21) Programme

Launched by the Society of British Aerospace Companies (SBAC) in 2006

Open to all suppliers in the aerospace and defence industry – further information can be obtained from www.adsgroup.org.uk – click on ‘SC21’ hyperlink

Three key workstreams aimed at improving the efficiency and effectiveness of the supply network;

• Accreditation

• Performance and Development

• Relationship

- MOD signed up to the programme in 2008


Centre for Defence Enterprise

Is the first point of contact in MOD for anyone with an innovation that has a potential defence application

Successful applicants could benefit from:

• Proof-of-concept funding in the form of a research contract• Support from military scientists and engineers• MOD trials and testing facilities• Mentoring service• Unique insight into UK & non-domestic defence markets• Received +4,700 research proposals – around 750 selected for funding• Resulting in total contract value of £44M – approx half of CDE contracts SMEs

Contact tel: 01235 438445 Email: [email protected]


Other Points of Contact

UK Trade & Investment Defence and Security Organisation – Small Business

Unit

Contact: Howard Gibbs – Head of Small Business Unit

Tel: 0207-215-8204


Website: www.dso.uktradeinvest.gov.uk

Information Pack


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