SOURCE: AFI
A recent audit by the Comptroller and Auditor General (CAG) of India has shed light on concerning practices within the Indian Air Force (IAF) regarding the formulation of Aircraft and Systems Qualitative Requirements (ASQRs). Instead of adhering to the spirit of the Defence Procurement Procedure (DPP), which aims for a transparent and competitive procurement process, the IAF has been found to tailor ASQRs based on the technical specifications of already available products in the market.
The audit pointed out that the IAF has been drafting ASQRs by directly copying the technical specifications of products which are already in the commercial domain. Moreover, these requirements have often been based on the inputs provided by vendors in response to the Request for Information (RFI) issued by the IAF. The DPP envisages the RFI as a tool to gather widespread information that would help in crafting broad, inclusive Qualitative Requirements (QRs) to ensure a level playing field among potential suppliers.
However, the audit observed that the RFI process was frequently used as a means to engage in selective consultations with one or two vendors, subsequently modifying the ASQRs to match their specific products. This practice has narrowed down the competition, effectively tailoring the procurement to benefit certain vendors.
Two high-profile procurement cases, the Apache Attack Helicopters and the Chinook Heavy Lift Helicopters, were cited as examples where the ASQRs were evidently aligned with the products of a particular vendor. This practice not only restricts competition but also potentially results in higher costs to the exchequer due to limited options in bidding.
The audit recommends a reevaluation of the procurement process, advocating for a return to the principles of open competition as outlined in the DPP. It suggests that ASQRs should be developed based on operational needs rather than market availability, and RFIs should be used to genuinely widen the scope of information rather than narrow it down.
The IAF and the Ministry of Defence have yet to respond formally to these findings. However, there is an expectation that this audit will prompt a review of current procurement practices, possibly leading to procedural reforms aimed at enhancing competition, transparency, and value for money in defense acquisitions.