PHILIP MARGERISON
DSS PRESENTATION
SELLING TO THE MOD
Email:
defcomrclsrt-dss@mod.uk
Tel:
030 679 32844/32843/32832
Website: www.contracts.mod.uk
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Defence Suppliers’ Service
What MOD spends to provide and sustain military
capability
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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
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Direct spend with SMEs in FY 2013/14 of £916M with over 7,000
different SMEs
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This does not include business that SMEs have with MOD suppliers
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Defence Suppliers’ Service
Contracts placed:
In FY 2013/14 approximately 2,300 new contracts
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60% valued at less than £100K
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7,500 contractors with extant contracts
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Over 1,000 Commercial Officers in the overall MOD acquisition
organisation
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Defence Suppliers’ Service
National Security through Technology: Technology,
Equipment & Support for UK Defence and Security
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White Paper published early February 2012
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Section devoted to SMEs – important aim is to make it easier for them
to do business with UK MOD
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Defence Suppliers’ Service
Package of Measures to Increase Opportunities for
SMEs to Participate in Government Procurement
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Appointment of dedicated Crown representative for SMEs
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Adopted new common core PQQ – working towards Government aim of minimising
use of PQQs for lower value requirements
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Greater use of ‘lotting’ strategies and outcome-based specifications
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A ‘mystery shopper’ service so businesses can tell Government where there are still
issues
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Creation of an SME panel
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Flagging of opportunities that may be suitable for SMEs
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Defence Suppliers’ Service
Package of Measures to Increase Opportunities for
SMEs to Participate in Government Procurement
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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.
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Use e-procurement to roll out simplified, streamlined contract templates for lower value
procurements – reducing volume of paperwork & improving consistency.
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Expand utilisation of e-procurement system to speed up invoicing & billing – will benefit
SMEs particularly for whom cash flow is critical.
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New round of engagement with SMEs & relevant Trade Associations to better understand
the blockers, opportunities & potential solutions.
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Ask major prime contractors to advise on steps they will take to increase SME participation
in supply chain for Government contracts.
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Defence Suppliers’ Service
The Defence Equipment Plan
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Published January 2013
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Planned spend of £159Bn for new equipment, data systems and equipment support
over 10 year period
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Combat Air sector – planned spend £18.5Bn – covers fast jets; Unmanned Aerial
Vehicles; military flying training and procurement of training aircraft
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Air Support sector – planned spend £13.9Bn – covers all large aircraft, including
transport, air-to-air refuelling and large ISTAR platforms
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Helicopter capability - planned spend of £12.1Bn – completion of Wildcat
programme; Puma Life Extension programme; purchase of additional 14 Chinook
helicopters
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ISTAR – planned spend of £4.4Bn on ISTAR programmes over next decade
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Defence Suppliers’ Service
The Defence Equipment Plan
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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
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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
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Submarines and Deterrent – planned spend of £35.8Bn – completion of remainder
of Class 7 Astute attack submarines; replacement of Vanguard class submarines
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Weapons – planned spend of £11.4Bn on various weapons programmes
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Full Defence Equipment Plan available at:
https://www.gov.uk/government/publications/the-defence-equipment-plan-2012
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Defence Suppliers’ Service
Defence Growth Partnership
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Launched Autumn 2013
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Govt & industry partnership to secure a thriving UK defence sector, delivering
security, growth & prosperity
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Work together to develop new opportunities
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Delivering growth through innovative & tailored solutions for customers around globe
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DGP – opportunity for companies at all levels of UK industrial value chain to
participate
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Contact: dgp@adsgroup.org.uk
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Defence Suppliers’ Service
Crown Commercial Services
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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
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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:
0345-410-2222
0345-010-3503
info@ccs.gsi.gov.uk
supplier@ccs.gsi.gov.uk
https://ccs.cabinetoffice.gov.uk
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Defence Suppliers’ Service
MOD Procurement Policy
Obtaining value for money through:
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Whole life costs
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Performance
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Delivery
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Quality
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Defence Suppliers’ Service
Approach
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Reasonable Opportunities to Compete
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Impartiality & Consistency
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Confidentiality
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EU Public Procurement Regulations
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Advertise Requirements
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Defence Suppliers’ Service
Acquisition Strategy
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Currently approximately 100 acquisition teams within DE&S
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Effective & transparent audit trail
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Approved at appropriate level for costs – Initial Gate and Main Gate approval (for
requirements above £20M)
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Explanation of most cost effective solution
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Assessment of risks and benefits involved
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Include ‘exportability’ options
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Industry Days – ‘Announcements’ section of MOD DCB/DCO
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Defence Suppliers’ Service
Competitive Tendering
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Competition preferred procurement route wherever feasible or
possible
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Vendor assessment and pre-qualification techniques
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Prospective bidders limited to around six
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Defence Suppliers’ Service
Tender Criteria
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Third party Quality Assurance certification
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Financially sound
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Managerial capability
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Technical competence
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Defence Suppliers’ Service
Supplier Selection
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Generally no more than 6 suppliers in competition
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Expressions of interest from industry
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Pre-Qualification Questionnaires (PQQs)
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Objective evaluation of relevant factors
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MOD encourages approaches from consortia of small companies that may be better
able to offer a solution & accept the risk than individual SMEs
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MOD requirement for Consortia to have a proper legal identity as a basis for
receiving a contract
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But – sometimes there is only one supplier
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Defence Suppliers’ Service
Non-Competitive Contracts
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Pricing agreed prior to contract placement
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No Acceptable Price, No Contract (NAPNOC)
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Mandatory for all non-competitive £1M+ contracts
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Approx £3.19Bn non-competitive contracts placed in FY 2013/14
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All non-competitive requirements advertised in MOD DCB for possible sub-contract
opportunities
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Defence Suppliers’ Service
The Tender Process
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Formal invitation to tender
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Clear documentation, evaluation criteria and weightings
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Clarification questions
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Bidders conferences
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Tenders submitted through independent Tender Board
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Tenders assessed
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Tender Assessment panel evaluate against pre-agreed criteria
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Defence Suppliers’ Service
Contract Award Criteria
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Technical & contractual compliance
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Clear-cut decision
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Down-selection process may be necessary
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Negotiation may be necessary
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Winning and losing bidders normally informed at the same time
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Debrief available
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Defence Suppliers’ Service
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:
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Export through supply chain activity
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R&D
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Investment
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Technology transfer
E: desirg-2-assthd@mod.uk; Tel: 0117-91-30271
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Defence Suppliers’ Service
Commercial Toolkit
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Available to MOD staff & industry
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Contains guidance on a wide range of commercial policy topics, DEFCONs,
DEFFORMs etc
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www.gov.uk/acquisition-operating-framework (free use, requires no-cost
registration)
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Commercial Toolkit;
https://www.aof.mod.uk/aofcontent/tactical/toolkit/content/defcons/defcon.htm
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Select either ‘Guidance Topics’; ‘DEFCONs’ or ‘DEFFORMs’
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Also see ‘Winning the Contract’ course www2.learndirect-business.com/businesscourses/winning-the-contract/
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Defence Suppliers’ Service
Advertising MOD’s Requirements
MOD routinely advertises:
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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)
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MOD DCB magazine available on subscription starting at £295 pa
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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
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MOD requirements valued at below £10K are not advertised centrally and are
generally procured on a local or regional basis
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Defence Suppliers’ Service
European Procurement Law
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All public procurement in the UK subject to Treaty on the Functioning of the
European Union (TFEU)
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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 nondiscriminatory manner)
- Mutual recognition (of equivalent documents, standards and certificates from
other EU Member States)
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Defence Suppliers’ Service
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Defence Suppliers’ Service
• Contract Notices
• Contract Bidders’ Notices
• Competitive/Non-competitive Contract awards
• Sub-Contract Opportunities
• Addendum
Email: bip@bipcontracts.com
Website: www.contracts.mod.uk
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Defence Suppliers’ Service
Guide to Contract Notices
Contract Notices
Identification number
Expressions of Interest deadline
Issuing branch
Summary
QA Standards
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Defence Suppliers’ Service
Guide to Contract Notices
Contract Bidder
Tender No.
ITT Issue Date
Deadline
Issuing Branch
Summary of Requirements
Issued To
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Defence Suppliers’ Service
Guide to Contract Notices
Non-Competitive
Contract Awards
Issuing Branch
Summary of Requirements
Contract No.
Awarded To
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Defence Suppliers’ Service
Guide to Contract Notices
Competitive
Contract awards
Issue date
Issuing branch
Summary of Requirements
Awarded to
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Defence Suppliers’ Service
Guide to Contract Notices
Addendum
Contract/ITT number
Summary
Advertised in
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Defence Suppliers’ Service
Supplier Information Database (SID)
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SID accessed via www.contracts.mod.uk website
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Companies can submit their profiles free of charge
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SID available to MOD acquisition staff as a resource to help draw up a tender
list/source a product or service
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Over 8,000 companies have submitted their profiles to the SID
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By logging their profile on the SID, it does not guarantee that companies will be
invited to tender for MOD requirements
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Defence Suppliers’ Service
Dynamic Pre-Qualification Questionnaire (DPQQ)
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Launched in September 2013 as part of MOD DCO portal (www.contracts.mod.uk)
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Allows MOD commercial staff to create an electronic PQQ – issued as part of
contract notice
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Potential suppliers will express an interest in the requirement by completing DPQQ
on line
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Saves up to 28 days by combining two parts of procurement procedure
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Reduces effort to create a PQQ & to complete a PQQ as suppliers can store
information on their capabilities on MOD DCO portal
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Defence Suppliers’ Service
Contracts Finder Portal
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Cabinet Office agreed ‘Contracts Finder’ portal to host tender & contract documents
& live contract opportunities
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‘Contracts Finder’ portal publish all Central Government contracting opportunities
above £10,000
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‘Contracts Finder’ portal – free to use; easy search facility; provide free e-mail alerts
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‘Contracts Finder’ portal launched on 11 February 2011
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Accessed via www.contracts-finder.co.uk
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Defence Suppliers’ Service
DEFENCE SUPPLIERS’ SERVICE
Part of Supplier Relations Team (SRT)
Help Desk
Email:
defcomrclsrt-dsshelpdesk@mod.uk
Website:
www.contracts.mod.uk
Tel:
030 679 32844/32843
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Defence Suppliers’ Service
Defence Suppliers’ Service
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Explain UK MOD Procurement & Procedure
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Provide Information brochure
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Provide Product requirement advice
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Provide Contact points
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Defence Suppliers’ Service
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
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MOD signed up to the programme in 2008
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Defence Suppliers’ Service
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:
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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: science-enterprise@mod.uk
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Defence Suppliers’ Service
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
Email:
howard.gibbs@ukti.gsi.gov.uk
Website: www.dso.uktradeinvest.gov.uk
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Defence Suppliers’ Service
Information Pack
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Defence Suppliers’ Service