DAC Intl

Web Link to DPP 2016: 

              "http://mod.nic.in/"

Useful Terms with brief explanation:

DPP - Defence Procurement Procedure - Reviewed every year

LTIPP - Long Term Integrated Perspective Plan - 15 year plan

SCAP -Services Capital Acquisition Plan - 5 year plan

AAP - Annual Acquisition Plan - 2 year roll on plan, Sub set of SCAP

PA - Production Agency

DAC - Defence Acquisition Council - Approves LTIPP, SCAP & PA (Where applicable)

DPB - Defence Procurement Board - Approves AAP. One level below DAC. 

SQR - Services Qualitative Requirements

AoN- Acceptance of Necessity - Valid for 6 months

RFI - Request For Information

SCAPCC/SCAPCHC - Services Capital Acquisition Plan Categorisation (Higher) Committee -  Approves/ Recommends AoN, Categorisation of SQRs (for approval by DAC/DPB)

RFQ - Request For Quotation

CNC - Contract Negotiation Committee

The acquisition process for schemes catgorised as ‘Buy’, ‘Buy and Make with ToT’ and Buy & Make (Indian) will involve the following functions:

DPP Categorisation(In order of Priority)    i.   Buy - Indian- IDDM

  ii.  Buy Indian

  iii. Buy and Make - Indian

  iv. Buy and Make

  v. Buy Global

Additional Category: MAKE

"Buy" category above involves outright purchase of ready equipment

"Buy and Make" refers to initial import of small quantities followed by phased indigenous manufacturing.

" Buy Indian - IDDM"

For i) Indian vendors with locally designed, developed and manufactured products with 40% indigenous content.

ii) Indian vendors with products with 60% indigenous content not necessarily Indian designed, developed.

“Buy Indian”

Applies to cases where Indian products are already available meeting customer requirements and has a minimum of 40% indigenous content. 

“Buy and Make Indian”

Cases where RFQ’s are given to Indian companies or Indian company in a joint venture with a foreign company. Initial quantities (from foreign vendor) are purchased through the Indian company followed by licensed production in India by an Indian company / JV. Indigenization level should be a minimum of 50%.

“Buy and Make”

Applies to cases where Indian companies have the capability and infrastructure to absorb the foreign technology and manufacture bulk quantities in India.

 Offset obligations apply in this case to the extent of a minimum of 30% on the FE value of the contract. No offset obligation will apply if the indigenous content is 50% or more.

"Buy Global"

Applies to cases where products are not available in India and there is no likelihood of their being available in a reasonable time frame. Foreign companies have to meet offset obligation.

“Make”

Applies to cases where Indian companies and / or DRDO have the capability to develop high technology complex systems through local research, design and development in a reasonable amount of time. Indigenization level is a minimum of 30%. Offset obligations as per offset guidelines in force.