Technical Evaluation
The sole aim of technical evaluation is to ascertain whether a system satisfies its acceptance criteria and should be accepted for induction into service or not. It is a three stage process. In the first stage, a duly constituted committee under concerned SHQ examines all technical proposals to short list vendors who should be asked to field their equipment for field trials. The second stage entails field trials to validate performance claims made by the vendors and to ascertain compliance of parameters in actual terrain and climatic conditions. This is undoubtedly the most important part of the technical evaluation process as equipment is tested in anticipated operational environment. In the final stage, data generated during field trials is appraised for evaluation of performance and operational capability of systems, to enable ascertainment of their potential for mission accomplishment. Thus, final selection of equipment is made on the basis of results of field trials.
Quality of field trials is dependent on the formulation of a well considered Field Trial and Evaluation Plan (FT&E). FT&E should be able to provide all required inputs to the decision making general staff. It has, however, been seen that the data provided to general staff is generally incomplete with large critical gaps. Consequently, the general staff is forced to order supplementary trials to obtain missing information, resulting in wastage of time and resources. Supplementary trials have become a norm now. Most vendors resent re-fielding their equipment on account of cost considerations. Unquestionably, supplementary trials reflect very poorly on the quality of preparatory planning done by the agencies involved.
There are a number of scientific tools and techniques available to determine fair price of equipment. To start with, detailed data has to be collected and collated to facilitate development of appropriate methodology for cost estimation.
Trials are carried out as per the Trial Directive issued by SHQ. It spells out trial methodology and procedure to be followed in detail. In other words, it lays down the ground rules for inter-se evaluation of performance of competing equipment. It is prepared by the user directorate, vetted by the operations directorate and issued by the equipment directorate at SHQ. Unfortunately, most trial directives are prepared in a routine manner without any application of mind. All parameters are listed and trial units are asked to ascertain their compliance. Neither suitability of trial agency (to check a parameter) nor the sequence in which trials should be performed is given any consideration. Many tests that require controlled testing environment (temperature, humidity and so on) are assigned to field units in routine.
Some trial directives are full of generalities with directions that are imprecise and vague. Different trial teams interpret them differently, thereby introducing an element of subjectivity, inviting protests from vendors. Poorly evolved FT&E and imperfectly drafted trial directives have caused avoidable delays and dented the credibility of the procurement system. Yet, no action has ever been taken against culpable officers.
Commercial Evaluation and Contract Negotiations
A Commercial Negotiation Committee (CNC) is constituted under MoD to open commercial quotes of technically successful vendors. It prepares a ‘Compliance Statement’ to ascertain discordance, if any, between terms mentioned in RFP and the proposals submitted by vendors. Thereafter, it carries out a comprehensive analysis of the commercial offers and prepares a Comparative Statement of Tenders with a view to determine the lowest offer (L1). Once lowest bidder is identified, detailed discussions are carried out with him to ensure product support during the assured life cycle of the product. It entails assured supply of information on product improvements, modifications and upgrades, obsolescence management and life time purchases and fixation of base prices and pricing mechanism for long term.
Prior to opening commercial quotes, CNC has to establish a fair and acceptable price bracket in an internal meeting. In case the price quoted by the lowest bidder falls within the said bracket, no further price negotiations are required to be carried out. However, CNC has to negotiate judiciously to obtain best terms and hammer-out all contractual issues in unequivocal terms.
There are a number of scientific tools and techniques available to determine fair price of equipment. To start with, detailed data has to be collected and collated to facilitate development of appropriate methodology for cost estimation. Thereafter, meaningful approximations have to be generated through techniques like analogy estimates and parametric estimating. Unquestionably, considerable skills, effort and diligence are required to develop and apply above mentioned technique to arrive at well-considered fair price. As regards determination of lowest bidder, DPP mandates that Life Cycle Cost (LCC) concept should be applied to determine cost over system’s entire life span in service, as cost of sustaining military equipment can be many times the cost of acquisition. However, no such endeavour has ever been made.
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