AOF
Commercial Toolkit
Commercial Guidance for the UK MOD Defence Acquisition Community
version 2.10.9 - August 2010
Commercial Guidance for the UK MOD Defence Acquisition Community
version 2.10.9 - August 2010
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NoticesIf you would like to add a notice to the Commercial Toolkit please contact the Sponsor: DGDC CS-2E-2A. Charges for Publications to be levied by DSDA Sponsor: DGDC CS-2D-Asst-Hd Duration: 31 December 2010 Cascade 15/2010 With effect from April 2010 the only publications DSDA will provide free of charge are:
From this date forward, prior to issuing the ITT, Commercial Officers must:
See Cascade 15/2010 Review of Commercial Toolkit Guidance on Overseas Procurement and Procurement from the USA Sponsor: DGDC CS-2D-Asst Hd Duration: to April 2010 We are aware that there are some gaps in the current Commercial Toolkit guidance on Overseas Procurement and Procurement from the USA. We have set in place a programme to review and develop material under a new heading of Overseas Procurement and International Acquisition. This month sees the publication of the overarching guidance for this new topic. Over the coming months a series of CPSs which address individual issues, bringing together elements from existing Overseas Procurement and Procurement from the USA topics, will be published. These individual topics, for example End User Certificates and Import and Export Issues, will sit alongside the current Industrial Participation guidance. The current guidance on Overseas Procurement and Procurement from the USA will be retained, but as specific topics are published onto the Commercial Toolkit the relevant paragraphs in the topics will be removed. For further information on this review contact DGDC CS-2D-Asst Hd, the topic sponsor. Redesignation of DEFCON 110 as DEFFORM 110 Sponsor: DGDC CS-2B-1A Duration: Until September 2010 A decision has been taken to redesignate DEFCON 110 as a DEFFORM as this better reflects the nature of the document. The content and layout are unchanged and no retrospective action is required. If you recreate the DEFCON locally please make sure you refer to it as a DEFFORM from 1 August 2010 onwards. New Contracts Containing DEFCON 694 Sponsor: DGDC CS-2D-1A Duration: Until 31 March 2011 Cascade 12/2010 A recent NAO report highlighted the fact that no single repository in MOD exists to enable the Asset Accounting Centre (AAC) to extract details of which contracts contain DEFCON 694. Measures are being taken to amend DEFFORM 57 and 57A to meet this mandatory requirement from 1 April 2011, allowing FMSSC Liverpool to be the electronic custodian of this data. Meanwhile, with effect from the date of Cascade 12/2010, where new contracts placed contain DEFCON 694, Commercial Officers are requested to inform AAC, by email at DES Fin FA-AAC DATA Group Mailbox identifying the following;
This action will cease on 31 March 2011, as the information will be retrievable direct from DEFFORM 57s/57As placed on FMSSC database from 1 April 2011. Change of Company Name - BAE Systems Land Systems Sponsor: DES Comrcl PET-CNS Duration: December 2010 Please be advised that in 2009 the BAE Systems Land Systems business was renamed Global Combat Systems. This has resulted in a number of company name changes to companies within the group on 01 June 2010; including some that held current MOD contracts. Commercial staff are advised that DES Comrcl PET-CNS completed company name change action on the following companies:
If your branch has current contracts with any of the above companies please amend your records accordingly to reflect the new company name A copy of the respective company name change letter can be issued on request by contacting DES Comrcl PET-CS-CNS staff on 030 679 32833 or 030 679 32816. Setting Up a Hierarchy in Project Online Sponsor: DES SRT-DSS Duration: September 2010 Commercial staff are reminded of the facility available on Project Online to set up a team hierarchy allowing members within a commercial team to access each others notices. Examples of the benefits of setting up a hierarchy within a team or group are as follows:
How can a hierarchy be set up? To set up a hierarchy on Project Online for your team you need to provide the Defence Suppliers Service (DSS) with following information:
Please send this information to either dessrt-dss@mod.uk or dessrt-dss1@mod.uk. They will then forward this information on your team’s behalf to the Project Online Help Desk team at BiP Solutions Ltd, who will set up the hierarchy, usually within two or three days. Sponsor: DES Fin FA-AOPlanDev Duration: to September 2010 Following the project to centralise elements of General Ledger activity, the process for gaining access to Discoverer and resetting passwords has changed. The form to request access has changed, but is still found on the following website: D Finance/User Support/Application Forms Once completed the form should be sent to: DES FIN CFA-AO COMMS USER SPT (MULTIUSER). This team will approve the application and then send it to the Financial Management Shared Service Centre (FMSSC) for action. If a user is having difficulty accessing Discoverer a call should initially be raised with the DE&S Accounting Operations Comms and User Support team on 9355 67777 option 1 or using the above email address. If a user knows that their password has expired, the user should contact the FMSSC on 9355 28888 option 1. Important Changes to Average Earnings and Producer Price Indices - 2010 Sponsor: DASA DESA-PI-HOB Duration: to December 2010 During 2010 the Office of National Statistics will change many of its UK price and earnings indices: the Average Earnings Index (AEI) will be replaced by the Average Weekly Earnings (AWE); and both the Producer Price Index (PPI) and AWE will be published based upon a new industrial classification (SIC 2007). The changes will result in the cessation of existing AEI and PPI indices. Contracts with Variation of Price (VOP) clauses linked to existing Producer Price Indices (PPI) or Average Earnings Indices (AEI) should be renegotiated during 2010 to ensure the nearest equivalent index is used. To find out more please see updated guidance in the Pricing - Variation of Price topic. Abbey Wood Tender Board – Closure Dates for 2010 Sponsor: DES Comrcl PET-CS-TenderBd Duration: Until January 2011 Commercial staff based at Abbey Wood should note that the Abbey Wood Tender Board will be closed for the week on the following dates during 2010:- Weeks Commencing:- 31 May 26 July 6 September 8 November It will also be closed for the Easter and Christmas periods as follows: 1 April - 12 April inclusive 20 December – 3 January inclusive Closure dates for 2011 will be published in due course. For planning purposes the Tender Board calendar can be viewed in outlook at the following address: DES Comrcl PET-CS-ABWTB (MULTIUSER) Provision of CompanyWatch / Dun & Bradstreet Business Reports to the Commercial Function Sponsor: DES Comrcl PET-CS-CNS Duration: Until October 2010 Please be advised that as of 01 April 2010 DES Comrcl PET-CS-CNS will no longer act as the focal point for the provision of CompanyWatch or Dun & Bradstreet business reports to the commercial function. This role is transferring to the Cost Assurance & Analysis Service Industry Analysis team (CAAS-IA). CAAS-IA in conjunction with Supplier Relations Team are responsible for managing and carrying out financial oversight of MOD critical suppliers. Acting as the point of contact for CompanyWatch / Dun & Bradstreet reports will allow CAAS-IA visibility early on in the commercial process. They will be able to provide the commercial function with financial advice and market intelligence to enable commercial staff to consider risk mitigation strategies before a contract is placed with a critical supplier. The point on contact for any requests for CompanyWatch or Dun & Bradstreet reports from 01 April 2010 onwards is as follows: DES Comrcl CAAS-IA6-SL For further information on Dun & Bradstreet reports see the Company Financial Status topic. New Framework Agreement for Product and Services from Supported Businesses and Factories Sponsor: DGDC CS 2C Asst Hd Duration: to December 2010 Acquisition teams should note that there are two requirements of Government policy in this area:
The Office of Government Commerce (OGC) Buying Solutions has concluded a Framework Agreement using the provision for reserving contracts for supported factories or businesses. The Framework Agreement covers the following products and services:
Further details of this Framework Agreement are set in OGC Information Note 01/10 15 January 2010. Acquisition teams are strongly encouraged to use this Framework Agreement, where appropriate. If a supported factory or business is able to meet a future MOD requirement, the procurement strategy should take into account wider factors, such as the Government desire to ensure that disabled people have the opportunity to enjoy the benefits of meaningful work. Decisions will however have to be taken on the basis of value for money. Defence Quality Assurance Mandated Quality Performance Indicators Sponsor: DES SRT-SD Duration: to August 2010 Following the introduction by DE&S SE Defence Quality Assurance (DQA) Policy of the DQA Mandated Quality Performance Indicators initiative staff should be aware that these must be included as part of the Supplier and Customer Performance Measurement (S&CPM) process activities. The S&CPM process Further information on the MQPI initiative can be found by contacting DES SE DQA Pol Int2. Commercial Sponsorship Business Case Sponsor: CPET Commercial Support Duration: Until 31 August 2010 This notice is to direct all members of the acquisition community involved in Sponsorship Agreements to JSP 462 – Financial Management Policy Manual This publication contains a Commercial Sponsorship Business Case Template. Commercial Officers should contact the TLB Sponsorship Focal Points for assistance. Contact details are contained within the JSP. DEFFORM 57 Bulk Changes - DE&S Accounting Operations Sponsor: DES Accounting Operations Duration: to 31 December 2010 It has come to the attention of DE&S Accounting Operations that there are instances where finance staff may wish to make amendments to the DEFFORM 57 to correct errors within the key financial fields or to add LPC information to contract lines. The attached document provides guidance to finance staff on raising bulk changes [55KB DOC] from which commercial staff can then raise the appropriate DEFFORM 57A (for ASPECT users the ASPECT DEFFORM 57A). Sponsor: DGDC CAG PFU Team Leader Duration: Until 31 August 2010 This notice is to advise all members of the acquisition community involved in projects/programmes using or considering Public-Private Partnerships (PPP) including the Private Finance Initiative (PFI), of the release of HM Treasury Application Note PPP projects in Current Market Conditions [86KB PDF]. The disruption in the financial markets and adverse economic conditions continue to affect the procurement of PPP projects and the Application Note is intended to assist authorities in addressing issues that arise as a result of current market conditions. It is intended to address current disruption in the financial markets and consequently will expire, unless renewed, on 31 August 2010. Commercial Officers should contact the MOD Private Finance Unit (PFU) for assistance in application of this and any other PFI guidance. Email Point of contact: modpfu-frontdesk@mod.uk Sponsor: DES Comrcl CAAS-IA7-SL Duration: Until October 2010 The Supply Chain Risk Management Notice [34KB DOC] is to draw the attention of commercial staff to the work which is currently being undertaken to manage and mitigate the risk of suppliers failing or exiting the marketplace. It is also aimed at re-enforcing the application of the current guidance to establish the financial status of a prospective MOD supplier. If you have any queries regarding this notice please contact DES SRT-DepHd@mod.uk on ABW 35665. Supplier Requests to Amend Firm Prices during Periods of Economic Instability Sponsor: DGDC CS-2A-ASST-HD Duration: Until December 2010 This notice is for all Senior Commercial Officers to ensure awareness of policy with regard to requests for review of agreed firm prices in the light of current economic conditions. Please read the attached cascade on Supplier Requests to Amend Firm Prices during Periods of Economic Instability [15KB PDF]. Queries should be directed to the sponsor. |
