5. Focus on the Essentials
A purposeful policy document must never lose its focus. Every provision therein must contribute to the achievement of the set out objectives. In its enthusiasm to make DPP appear fair, transparent and above board, MoD has burdened it with pointless and wasteful encumbrances. They mean little but consume considerable time and effort. Worse, they divert attention from critical matters to peripheral issues. Four provisions that need deletion are discussed below:-
- Under pressure from Integrity International and to display its adherence to probity, MoD has included the requirement of Integrity Pact (IP) for all contracts over Rs 100 crores. It is to be signed between the procurement agency and the vendors – the procurement agency promising not to ask for bribes and the vendors undertaking not to offer bribes. There cannot be a more juvenile and purposeless provision. It defies logic as to how officials who are not deterred by existing penal and service rules can be expected to remain bound by a mere undertaking that carries only moral weight. According to vendors, it is for the procurement agency to lay down business ethics and norms. As far as they are concerned, they want business. Interestingly, the policy conveys an impression that probity is essential for contracts of over Rs 100 crores only and for contracts of lesser value it can be dispensed with.
- DPP also provides for the nomination of Independent Monitors (IM) to oversee implementation of IP. In case a vendor submits a complaint with regard to violation of IP, the procurement agency may forward the same to IM for comments. IM may peruse documents if required and submit their report to the Acquisition Wing for taking decision as deemed fit. Though IP is a bilateral agreement, the Acquisition Wing has most unfairly abrogated the right to be the final arbiter of all complaints. It needs to be highlighted here that it is for the Acquisition Wing to determine whether to refer a complaint to IM and also to decide final disposal of their report. Thus, provision of nomination of IM serves no purpose at all except provide opportunity to well-connected retired bureaucrats to find re-employment.
- Under fall clause of IP, an undertaking is sought from every bidder that he had not supplied similar item at a price lower than that offered in the present bid to any Government department. If supplied, then the details regarding the cost, time of supply and quantities are required to be included in the commercial offer. The clause warns the bidders that if they are found to have supplied at a lower price, then the same price would be applicable to the present case with due allowance for quantities and intervening time period. Two points need emphasis here. One, the provision amounts to an abject admission of MoD’s failure to maintain an exhaustive data bank of all purchases made by the services. Hence, it wants vendors to provide that information. Secondly, it is well nigh impossible to compare two procurement cases as SQR would invariably differ. Therefore, inclusion of fall clause is a futile exercise.
- With a view to have mid-course check, DPP mandates constitution of a Technical Oversight Committee (TOC) for contracts over Rs 300 crores to ascertain that selection of vendors, trials, compliance to SQR and trial evaluations were carried out according to the prescribed procedures. TOC consists of 3 members — a service officer, a DRDO scientist and a Defence Public Sector Undertaking representative. TOC is a farce. Members are detailed in routine, possess little knowledge of the procurement process and can spot no infirmity at all. Although MoD considers it to be a bulwark against any allegations of irregularity at a later stage, it creates considerable futile work for Technical Managers, thereby diverting their attention from the essentials.
Finally
Continuance of status quo is in the interest of all decision makers. Invariably, all officials involved in reviewing DPP are the same government functionaries who are responsible for the ongoing mess. Supremacy of personal interests over national interests has been the hallmark of Indian governance. Therefore, despite incontrovertible effectiveness and practicality of the recommended five measures, MoD would need to muster great courage to break free of deep-seated prejudices and past mindset to accept them. Whereas no major difficulty is envisaged in the amalgamation of categories and attempting concurrent activities, other measures are likely to prove more challenging.
Delegation of authority to a subordinate organisation, commensurate with its potential and resources, is the hallmark of any rational procedure. MoD must explore all possibilities to delegate more powers to the services. Likewise, MoD must consider doing away with politically sensitive issues like the Integrity Pact. Finally, although many senior officers (both military and civil) believe that their long experience equips them to shoulder any responsibility, due attention must be paid to the selection and training of acquisition functionaries.
Minor tinkering with a few irrelevant provisions will result in cosmetic changes of peripheral importance. Radical reforms need a paradigm shift in approach. It is for MoD to display its resolve to reform the system through bold and innovative initiative. Biennial review of DPP should not be allowed to degenerate into a meaningless periodic ritual.
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