Defence Industry

Defence Procurements : learning from past mistakes
Star Rating Loader Please wait...
Issue Vol 24.4 Oct-Dec2009 | Date : 23 Nov , 2010

Worse, in a highly competitive world of bureaucratic quagmire, every functionary plays safe. Passing the buck and self justification are considered essential requirements for advancement in career. Thus, the current environment is highly non-conducive to an objective appraisal of a case to draw constructive lessons as facts are not presented in an honest manner. Every functionary wants to ensure that his role remains unquestioned. Even an innocuous remark is taken as serious criticism. Subjectivity prevents identification of areas that warrant improvement.

Need to Institutionalise Learning from Experience

Learning is a continuous process through experience. What individuals learn must be harnessed into organisational knowledge bank. This bank of knowledge should then be sifted, analysed, synthesised and converted into actionable guidance in a systematic way by duly trained personnel.

Creation of ‘Lessons Learnt Cell’

To draw lessons for future application, a separate ‘Lessons Learnt Cell’ (LLC) should be created under Director General Acquisition (DGA). It should consist of a small group of hand-picked personnel with deep knowledge of various facets of defence acquisitions. Even civilian experts can be co-opted. Members should possess an eye for detail and ability to scan complex cases to identify key areas for further study. They should have breadth of vision to understand functioning of different agencies for holistic treatment of cases and draw relevant lessons. LLC should also be tasked to create a data bank and be a repository of organisational memory.

On the conclusion of an acquisition case (either when a contract is signed or case aborted prematurely), the concerned Division of the Acquisition Wing should notify LLC providing answers to the following querries:-

Functioning of LLC

  • Was it a planned procurement i.e. included in the Services Capital Acquisition Plan and the Annual Acquisition Plan?
  • Creation_of_Lessons_LearntWere services qualitative requirements formulated realistically and in concrete and verifiable terms?
  • Was technical evaluation carried out as per the laid down procedure?
  • Was the trial methodology evolved in an objective and diligent manner to validate performance parameters in an open and transparent manner?
  • Did staff evaluation take all aspects in consideration while selecting equipment acceptable for induction into the service?
  • Was price negotiation carried out in a structured manner after determining fair price with the help of scientific tools?
  • Has the contract drafting been done to ensure full protection of Indian interests?
  • In the case of successful cases, what factors stand out for their positive contribution?
  • In the case of aborted cases, what factors caused infirmities?
  • What are the unique features of the case that warrant attention?

Functioning_of_Lessons_LearPerusal of main case files should result in the identification of areas for further study. A broad plan should then be evolved to spot peculiarities of the case and their effect on the success or failure of the case. Additional documents can be sought from the Division concerned to obtain supplementary inputs.

The role of the proposed LLC must be made clear to the complete acquisition environment unambiguously – it is neither intended to be a post-audit body nor an oversight agency. It is expected to function like a study-cum-analysis group with mandate to suggest measures for the improvement of acquisition regime by drawing lessons from past acquisition cases. Its role should never be investigative in nature to pin responsibility for likely acts of omission and commission.

Drawing of Lessons Learnt and their Dissemination

This is certainly going to be the most critical aspect of the whole exercise. The sole aim is to validate existing policy directions, acquisition structures, procurement processes and their viability to draw lessons for further improvement. Therefore, the language has to be polite and suggestive, and not critical. No aspersions should ever be cast lest functionaries start hiding true information and be less forthcoming with facts. As a matter of fact, no individual should ever be named or held accountable.

1 2 3
Rate this Article
Star Rating Loader Please wait...
The views expressed are of the author and do not necessarily represent the opinions or policies of the Indian Defence Review.

About the Author

Maj Gen Mrinal Suman

is India’s foremost expert in defence procurement procedures and offsets. He heads Defence Technical Assessment and Advisory Services Group of CII.

More by the same author

Post your Comment

2000characters left