1. PHILIP MARGERISON DSS PRESENTATION SELLING TO THE MOD
Tel: /32843/32832
Website:
Defence Suppliers’ Service

2. 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
Defence Suppliers’ Service

3. 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

4. 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

5. 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

6. 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.

7. 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

8. 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:

9. 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:

10. 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:
Supplier Support:
Customer Service Desk:
Supplier Service Desk:
Website:

11. MOD Procurement Policy
Obtaining value for money through:
Whole life costs
Performance
Delivery
Quality

12. Approach Reasonable Opportunities to Compete
Impartiality & Consistency
Confidentiality
EU Public Procurement Regulations
Advertise Requirements

13. 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

14. Competitive Tendering
Competition preferred procurement route wherever feasible or possible
Vendor assessment and pre-qualification techniques
Prospective bidders limited to around six

15. Tender Criteria Third party Quality Assurance certification
Financially sound
Managerial capability
Technical competence

16. 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

17. 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

18. 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

19. 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

20. Defence & Security Industrial Engagement Policy
Policy 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: Tel:

21. Commercial Toolkit Available to MOD staff & industry
Contains guidance on a wide range of commercial policy topics, DEFCONs, DEFFORMs etc
(free use, requires no-cost registration)
Commercial Toolkit;
Select either ‘Guidance Topics’; ‘DEFCONs’ or ‘DEFFORMs’
Also see ‘Winning the Contract’ course www2.learndirect-business.com/business-courses/winning-the-contract/

22. 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 (
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

23. 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. Defence Suppliers’ Service24
Defence Suppliers’ Service

25. Website: www.contracts.mod.uk
Contract Notices
Contract Bidders’ Notices
Competitive/Non-competitive Contract awards
Sub-Contract Opportunities
Addendum
Website: 25
Defence Suppliers’ Service

26. Guide to Contract Notices
Identification number
Expressions of Interest deadline
Issuing branch
Summary
QA Standards 26
Defence Suppliers’ Service

27. Guide to Contract Notices
Contract Bidder
Tender No.
ITT Issue Date
Deadline
Issuing Branch
Summary of Requirements
Issued To 27
Defence Suppliers’ Service

28. Guide to Contract Notices
Non-Competitive Contract Awards
Issuing Branch
Summary of Requirements
Contract No.
Awarded To . 28
Defence Suppliers’ Service

29. Guide to Contract Notices
Competitive Contract awards
Issue date
Issuing branch
Summary of Requirements
Awarded to 29
Defence Suppliers’ Service

30. Guide to Contract Notices
Addendum
Contract/ITT number
Summary
Advertised in 30
Defence Suppliers’ Service

31. Supplier Information Database (SID)
SID accessed via 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

32. Dynamic Pre-Qualification Questionnaire (DPQQ)
Launched in September 2013 as part of MOD DCO portal (
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

33. 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 alerts
‘Contracts Finder’ portal launched on 11 February 2011
Accessed via

34. DEFENCE SUPPLIERS’ SERVICE Part of Supplier Relations Team (SRT)
Help Desk
Website:
Tel: /32843

35. Defence Suppliers’ Service
Explain UK MOD Procurement & Procedure
Provide Information brochure
Provide Product requirement advice
Provide Contact points

36. 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 – 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

37. 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:

38. Other Points of Contact
UK Trade & Investment Defence and Security Organisation – Small Business Unit
Contact: Howard Gibbs – Head of Small Business Unit
Tel:
Website:

39. Information Pack 39
Defence Suppliers’ Service