New Delhi (NVI): In another measure to support industry, requirement of “Performance Security” for the “Development Contracts” by DRDO and ATVP (Advanced Technology Vessel Project) has been waived by the Ministry of Defence.
The approval has for the same has been given by Defence Minister Rajnath Singh, the MoD said.
“This will apply to development contracts only, as defined in para 12.5 of the DRDO Procurement Manual, PM 2016, as amended. However, Warranty Bond would continue to be obtained from successful development partner to cover the DRDO/ATVP interest during the warranty period,” the Ministry of Defence said in a statement.
As per the approval, the provision will be applicable for all RFPs issued in respect of development contracts after the date of issue of this amendment that is 23 September 2020.
“All ongoing cases of development contracts in which Request for proposal (RFP)/ contract has already been issued may continue to be regulated as per the provisions contained in the issued RFP/ contract,” the MoD said.
Secretary DD R&D and Chairman DRDO Dr G Satheesh Reddy stated that it is another important milestone to support Industry.