doing business with defence: uk mod · 2 uk industry’s largest single customer around £21bn...
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Doing Business With Defence: UK MOD
John Kite
MOD Commercial - Supply Chain Development
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UK industry’s largest single customer
Around £21Bn spend in FY 18/19 with over 16,000 suppliers
Planned spend of £186Bn on equipment and support in the next decade
Majority of opportunities to do business with defence exist in our supply chain
Defence procurement key facts
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Defence Equipment & Support
Defence Infrastructure Organisation
Information Systems & Services
Crown Commercial Service
Defence Science &Technology
Laboratory
Our procurement organisations
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Our Strategic Suppliers
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Our Procurement Approach
• Our procurement processes are based on the
principles of fair and open competition and
reflect existing EU Procurement Directives
• The Public Contracts Regulations and Defence
and Security Public Contracts Regulations will
still exist after Brexit
• Several different procedures for use in different
circumstances
• We use competition as our default position and
do not operate preferred supplier lists
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A typical MOD tender process
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Top Tips for SMEs
• Build below the threshold <£100K
• Be part of the conversation – look out for
Market Engagement events
• Answer the exam questions!
• Provide evidence to substantiate your bid
• Top Tips for Tendering
• via DCO at www.contracts.mod.uk
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Where to find our procurement opportunities
Defence Contracts Online www.contracts.mod.uk
Contracts Finder
www.gov.uk/contracts-finder
● wider government opportunities
● includes Crown Commercial Services
Visit defence contractors’ websites
Follow us on Twitter @defenceproc
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Sub-contract advertising
• Improve visibility of opportunity - in one place
• Attract new, innovative, non-traditional suppliers
• A more diverse supply chain
• Helps to stimulate the market – widen the net
• Greater innovation and value for money
• Good for your reputation as a defence supplier
• And it’s free to use!
We’re encouraging
major suppliers to
advertise sub-contract
opportunities on
www.contracts.mod.uk
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SME Action Plan
Strengthen our supplier engagement
Improve procurement policy and process
Make it easier to do business with defence
Encourage innovation
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Innovation
• We want to encourage innovation and attract new and non-traditional suppliers to Defence
• Sources of funding for innovation via competitions include:
• Defence and Security Accelerator
• Innovate UK
Small Business Research Initiative (SBRI)
Open Call for Innovation
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Prompt Payment
• Bidders on government contracts will be required to
provide evidence of their payment performance
• Suppliers will need to pay 95% of invoices within 60
days or risk being excluded from bidding
• Initial threshold is 75% - action plan required
• https://www.gov.uk/check-when-businesses-pay-
invoices
New policy to ensure
that suppliers benefit
from being paid on time
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United Kingdom National Codification Bureau
• UKNCB - the sole authority within the UK for
NATO Codification
• Can provide a NATO Stock Number to aid the
marketing and sales of UK Industry’s products
• Benefits:
Get your product added to the catalogue
Key enabler to sell defence exports
A UK NSN has a positive marketing effect
• For more information and to codify products, visit:
www.ncb.mod.uk
NATO Codification in
aid of export sales
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Preparing your business for Brexit
The UK is leaving the EU. Leaving the
EU means your business or organisation
may need to prepare for change.
For more information, help and guidance
please visit:
https://euexit.campaign.gov.uk
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Questions