The defence budget has seen almost a threefold increase in the last 10 years, with a record ₹6.81 lakh crore being allocated for defence in the Union Budget this year—a 9.53% increase since the last financial year. Especially after the famous Operation Sindoor, the government will now be focussed on modernising its armed forces and promoting the ‘Make in India’ initiative further to boost indigenous defence manufacturing and services. Engaging with defence tenders and being a part of such nation building projects serves as a tangible manifestation of a business’s commitment to the strength, welfare and progress of our motherland.
Reasons to Participate in Defence Tenders
Large and Varied Market
Defence services is a large market, which is growing constantly with the need for a range of products like weapons, ammunition, vehicles, aircrafts, protective gear, naval vessels, surveillance systems and services like maintenance and repair, logistics and transportation, IT and cybersecurity, infrastructure development, medical services, catering and hospitality.
Emphasis on Self-Reliance
A large part of the defence capital procurement budget (almost 75%) for FY 24 has been reserved for procurement from indigenous markets. The current government strongly emphasises on self-reliance or Atma Nirbhar Bharat, which entails increased opportunities for Indian businesses, startups and MSMEs.
Need for Advanced Technology
Indian armed forces now have cutting-edge technologies and there is a need for more. Businesses that provide services like AI, cybersecurity, training and simulation development, R&D, data analytics, system integration and products like high resolution drones, thermal imaging devices, radar systems, communication and network systems (SATCOM, SDRs), electronic warfare systems (Jammers, ELINT, SIGINT, RWR), weapon systems and components, AI and ML applications and so on.
Good for Your Business and its Reputation
Defence tenders often tend to involve long-term projects that provide a stable revenue stream for your business, provided you offer superior and timely services. Needless to say, defence tenders act as conduits to serve your nation while doing what you love doing. Supplying to the defence forces can add to your prestige and credibility.
Potential for Export
India’s defence exports have reached a record high of ₹23,622 crore in the last FY 24-25 with our country exporting defence equipment to over 100 countries. Defence tenders can give you opportunities to contribute to defence exports, with the government aiming for ₹ 50,000 crore exports by 2029.
Reliable Sources for Defence Tenders
- Central Public Procurement Portal – The eprocurement for Central Government tenders including tender defence, and can be done through the GeM-CPP portal. Organisations like the Ministry of Defence use this portal to publish their tenders. You can look for active defence tenders by location, organisation and classification and also access the latest corrigenda on the portal.
- Make in India Defence Portal – The focus of the Make in India defence production portal is to boost indigenous design and development in the manufacturing sector. Defence tenders are often published on this portal.
- BidAssist – BidAssist is a tender aggregate platform, which is updated every day with the latest tender defence among all others. BidAssist is easy to navigate and one can easily find the latest and active defence tenders, including their latest corrigenda.
Tendering Process in the Defence Sector
The tendering process in the Indian Defence sector is quite structured and is primarily governed by the DAP (Defence Acquisition Procedure). Here’s a general step-wise explanation of the entire process, albeit one must remember that it may vary based on the nature and value of the tender defence –
Identifying a Requirement
The services (Army, Airforce, Navy) identify their needs or a capability gap based on which they formulate SQRs (Staff Qualitative Requirements). They define the essential operational and technical parameters that the product or services must meet. This forms the basis of a tender defence. Once MOD approves them, the defence tenders are ready to roll out.
Request for Information (RFI)
Next, MOD may issue an RFI to gauge the availability of potential solutions and refine their understanding to potentially revise their SQRs.
Request for Proposal (RFP)
Based on the RFI responses and re-defined needs, an acquisition plan is devised including budgetary allocation and detailed tender documents are prepared. The procurement is categorised under different routes as defined by DAP like Buy (Indian-IDDM), Buy (Indian), Buy and Make (Indian), Buy (Global) and so on.
Issuance of a Tender Defence
Defence tenders are issued on the CPPP. Sometimes you may find them in newspapers as well. You can also access them on BidAssist as we feature all latest tender releases. Interested vendors can download the tender documents from the eprocurement portal or from BidAssist.
Bid Submission
At times, MOD holds pre-bid meetings in order to clarify any queries regarding an RFP. For bid submission, vendors prepare their technical and financial (commercial) documents and submit them in two parts within the timeframe. Potential bidders have to ensure that they possess a Digital Signature Certificate for online bidding.
Technical and Commercial Evaluation
A technical evaluation committee (TEC) evaluates the technical bids to weigh whether the vendors meet the required technical specifications and SQRs as per the RFP. This often involves presentations, demonstrations and trials depending upon the type of defence tenders. The bids that qualify the technical evaluation are then evaluated for their commercial viability and value for money by a contract negotiation committee (CNC). Usually the lowest compliant offer is awarded the contract for defence tenders.
Contract Negotiation and Award
Sometimes negotiations are held with the bid winner to finalise the terms and conditions of the proposal for the tender defence, before awarding the contract to them. The MOD and the vendor sign a formal contract, which outlines the project specifications, delivery schedules, cost, terms and conditions etc.
Quality Assurance during Project Execution
Agencies like Directorate General of Quality Assurance (DGQA) conduct regular checks to keep the project on track and perform quality checks as per the RFP.
Defence Tenders Made Easy on BidAssist
Discover a range of defence tenders on BidAssist and access details about procurement needs with help from our experts. Stay informed about potential contracts that align with your capabilities only with BidAssist. Unlike other tender search platforms, searching for a tender on BidAssist is free just like Google. Search by entering the keywords related to a tender defence even within BOQs. While the BOQ search is enabled by default, one can disable it by using the “More Filters” button. Additionally, there is an “exact search” option, which can be used in case the search results for the defence tenders are not relevant for you.