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CATEGORIZATION

CLARITY ON DEFINING BUY (INDIAN).

BUY (INDIAN) MUST HAVE MINIMUM 30% INDIGENOUS CONTENT ON COST BASIS.

THIS IMPLIES THAT INDIGENOUS CONTENT IN THE TOTAL OF (i) BASIC COST OF
EQUIPMENT; (ii) COST OF MANUFACTURERS RECOMMENDED LIST OF SPARES; AND
(iii) COST OF SPECIAL MAINTENANCE TOOLS AND SPECIAL TEST EQUIPMENT MUST
BE AT LEAST 30% OF THE TOTAL CONTRACT VALUE.

IN ADDITION, EQUIPMENT OFFERED AT THE TRIAL STAGE MUST ALSO HAVE
MINIMUM 30% INDIGENOUS CONTENT AGAINST EACH OF THESE SUB-CATEGORIES.

SIMPLIFICATION OF PROCEDURE FOR BUY AND MAKE (INDIAN).

MUST HAVE MINIMUM 50% INDIGENOUS CONTENT ON COST BASIS. THIS IMPLIES
THAT INDIGENOUS CONTENT IN THE TOTAL OF (i) BASIC COST OF EQUIPMENT; (ii)
COST OF MRLS; AND (iii) COST OF SMTs AND STEs MUST BE AT LEAST 50% OF THE
TOTAL CONTRACT VALUE.

IN ADDITION, SUCH CASES REQUIRE MINIMUM 30% INDIGENOUS INDIAN CONTENT
IN THE FIRST BASIC EQUIPMENT MADE/ASSEMBLED IN INDIA AND IN SUBSEQUENT
DELIVERIES THEREOF.

NO MINIMUM INDIGENOUS CONTENT SHALL BE REQUIRED FOR THE BUY PORTION
OF THE CONTRACT, IN CASE A BUY PORTION IS APPROVED AT THE STAGE OF
ACCORD OF AoN.




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PREFERRED CATEGORIZATION

PREFERENCE WILL BE GIVEN TO INDIGENOUS DESIGN, DEVELOPMENT AND
MANUFACTURE OF DEFENCE EQUIPMENT.

WHENEVER THE REQUIRED ARMS, AMMUNITION & EQUIPMENT ARE
POSSIBLE TO BE MADE BY INDIAN INDUSTRY WITHIN THE TIME LINES
REQUIRED BY THE SERVICES, THE PROCUREMENT WILL BE MADE FROM
INDIGENOUS SOURCES.

ACCORDINGLY, THE CATEGORISATION COMMITTEES, WHILE CONSIDERING
CATEGORISATION OF ALL CAPITAL ACQUISITION UNDER THE DPP, WILL
FOLLOW A PREFERRED ORDER OF CATEGORISATION :-

BUY (INDIAN)

BUY & MAKE (INDIAN)

MAKE (INDIAN)

BUY & MAKE

BUY (GLOBAL)


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WAIVER OF SQR PARAMETERS

SQR WOULD INVARIABLY BE FINALIZED PRIOR TO SEEKING AON FOR THE
SCHEME.

A COPY OF SQRS DULY APPROVED BY THE RESPECTIVE SHQ AUTHORITIES
WOULD BE SUBMITTED ALONGWITH THE STATEMENT OF CASE FOR SEEKING
AON.

NO AMENDMENT OF SQR IS PERMISSIBLE THEREAFTER.

IN AN UNFORESEEN SITUATION, WHERE AN AMENDMENT TO SQR BECOMES
NECESSARY AFTER ACCORD OF AON, THE CASE SHOULD BE RESUBMITTED
FOR REVALIDATION OF AON EARLIER ACCORDED.




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BUY AND MAKE (INDIAN)

SQRS CAN BE FINALIZED PRIOR TO ISSUE OF RFP.

THE SHQ SHALL SPECIFY IN THE STATEMENT OF CASE (SOC) THE
TECHNOLOGIES REQUIRED TO BE ABSORBED BY THE INDIAN VENDOR, 50%
OF WHICH WILL BE IN CATEGORY I AND II AS PER APPENDIX L.
TECHNOLOGIES TO BE IDENTIFIED IN CONSULTATION WITH DRDO.

PSQRS SHALL BE APPENDED TO THE SOC WHILE SEEKING AON. AON FOR
SUCH CASES SHALL BE VALID FOR A PERIOD OF 2 YEARS FROM THE DATE OF
ACCORD.

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ST
STAGE VENDOR SHORT-LISTING BY SHQS BASED ON PSQRS APPROVED
AT THE AON STAGE. HOWEVER, AFTER ACCORD OF AON BUT PRIOR TO RFP
ISSUE, THE SHQ, SHALL HOLD CONSULTATIONS ALONGWITH DDP AND DRDO
REPS WITH THE 1
ST
STAGE SHORT-LISTED VENDORS. THESE CONSULTATIONS
MAY RELATE TO PSQRS, DELIVERY TIMELINES AND TECHNOLOGY
ABSORPTION ASPECTS.

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BUY AND MAKE (INDIAN)

REPS OF DDP AND DRDO WILL BE ASSOCIATED WITH VENDOR LIST
FINALIZATION.

THE RFP SHALL SEEK AN INDIGENIZATION PLAN AND A TECHNOLOGY
ABSORPTION PLAN IN STRICT ACCORDANCE WITH (1) INDIGENOUS CONTENT
REQUIREMENTS AT VARIOUS STAGES OF THE DELIVERY SCHEDULE; AND (2)
TECHNOLOGY ABSORPTION REQUIREMENTS MENTIONED IN THE RFP.

FURTHER PROCESSING OF THESE CASES SHALL BE UNDERTAKEN AS PER
PROCEDURE PRESCRIBED FOR BUY AND MAKE CATEGORY.

VENDORS, WHILE RESPONDING TO THE RFP, SHALL ENSURE THAT THEIR
FOREIGN PARTNER(S) FROM WHOM TECHNOLOGY TRANSFER IS OBTAINED
SHOULD BE OEMS OR THEIR AUTHORISED LICENSEES, DESIGN AGENCIES OR
GOVERNMENT SPONSORED EXPORT AGENCIES. IN ADDITION, SUCH FOREIGN
PARTNER(S) SHOULD NOT BE DEBARRED, BANNED, SUSPENDED OR
BLACKLISTED BY THE MINISTRY OF DEFENCE.

INDIAN VENDORS PARTICIPATING IN SUCH CASES SHALL REMAIN LIABLE TO
ACHIEVE MANDATORY INDIGENOUS CONTENT REQUIREMENTS.


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MISC

CHANGES IN WARRANTY CLAUSE HAVE BEEN INCORPORATED TO BRING IT
IN LINE WITH DRAFT CONTRACT AS PER DPP.

CERTIFICATE MALICIOUS CODE ADDED IN TOT APPENDIX. TO CERTIFY
THAT THE HARDWARE AND THE SOFTWARE BEING OFFERED, AS PART OF
THE CONTRACT, DOES NOT CONTAIN EMBEDDED MALICIOUS CODE THAT
WOULD ACTIVATE PROCEDURES TO:-

INHIBIT THE DESIRED AND DESIGNED FUNCTION OF THE EQUIPMENT.

CAUSE PHYSICAL DAMAGE TO THE USER OR EQUIPMENT DURING THE
EXPLOITATION.

TAP INFORMATION RESIDENT OR TRANSIENT IN THE EQUIPMENT/
NETWORKS.

DRAFT RFP FORMAT FOR PROCUREMENT OF SHIPS HAS BEEN ADDED.

MAKE PROCEDURE IS UNDER AMENDMENT.



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