Influencing Supply Networks

Who should read this page?

This page is primarily provided for Commercial Officers, but is also relevant to all those involved in acquisition across the Ministry of Defence (MOD).

What does this page provide?

This page briefly explains what Influencing Supply Networks is, shows you where you can find policy and guidance on the subject, identifies the main legal regulations impacting on its implementation and outlines the general underpinning principles.

It also explains what is mandated, identifies who you can go to for advice, sets out the relevant Commercial training and provides a list of further reading.

What is Influencing Supply Networks?

Influencing Supply Networks is about having a constructive affect on the relationship between MOD and its suppliers and the supporting supply chain in order to ensure that the most effective and efficient procurement route is taken.

Where can I find policy and guidance on Supply Networks?

Defence Industrial Strategy External link to Ministry of Defence Intranet content , Version 1.0 explains the overarching MOD intentions towards its Supply Networks through the following sections:

Section A7 (covering Competition and Value for Money)
Section A8 (covering Transparency)
Section A9 (covering Wider Factors - such as Security of Supply)

MOD Supply Networks Policy (APB 07 39) [33KB PDF] states MOD’s central policy on Supply Networks. Defence Equipment and Support (DE&S) Supplier Relations Team are responsible for the MOD wide implementation plan for this central policy.

The Influencing Supply Networks Commercial Policy Statement (CPS) [54KB PDF] states MOD’s Commercial Policy that flows from the central MOD policy.

What is the Legal Framework for Influencing Supply Networks?

The subject of Supply Networks is complex and therefore the entire legal framework is vast in scope. For the purposes of this document which focuses on ‘Influencing’ Supply Networks, the most prominent legal considerations are:

European Community (EC) Public Procurement Directive 2004/18/EC - which is implemented into United Kingdom (UK) law by the means of:
The Public Contracts Regulations 2006 ('the Regulations') - for rules on selection criteria, award criteria and contract conditions affecting supply networks, where the goods, services or works contracts falls within scope of the Regulations
The Competition Act 1998 - for rules governing the behaviours of entities within a market that compete with each other or where a particular entity has a dominant position. It aims to promote competition and prohibits anti-competitive agreements.

What is the general principle when dealing with Influencing Supply Networks?

Influencing Supply Networks is a through life activity that commences before a Contract is let. It relies on collaborative working, but effective competitive procurement will continue to be an important tool for achieving best value for money. Responsibility for supply networks ultimately rests with the project team leader; however, commercial teams must be involved in all stages of the process and should seek to ensure that influence has been appropriately applied.

What is mandated when dealing with Influencing Supply Networks?

The requirement to work in accordance with the policy and guidance set out in the Influencing Supply Networks Commercial Policy Statement [54KB PDF].
All Public contracting authorities must adhere to the EC Public Procurement Directive 2004/18/EC which is implemented in UK Law by the Public Contracts Regulations.
The supply network must be engaged in a fair, non-discriminatory manner that is characterised by predictability and openness; for example, by the publication of the contract award notice and selection and award criteria.

Who do I go to for advice on Influencing Supply Networks?

Contact	Phone / Email	Area
DGDC-CS	DGDC CS-1B-ASST-HD	For advice on this page and the Influencing Supply Networks CPS
The relevant Head of Commercial		For business specific application of the CPS on influencing Supply Networks
DGDC Ind Pol	DGDC Sec IP-5	For advice on MOD’s Supply Network Policy
DES D Commercial	DES SRT-Hd	Departmental lead for SN Policy Implementation

What training is available on Influencing Supply Networks?

The Supply Networks subjects are covered by the Commercial Awareness and Practitioners Programme (CAPP) and Commercial Practitioner Workshops 1 and 2.

What further reading might help?

AOF - Commercial Toolkit content:

Society of British Aerospace Companies – 21st Century Supply Chain External link to Internet content (SBAC SC 21)

Glover Report – Accelerating the SME economic engine External link to Internet content

Director General Safety and Engineering (DGSE) Issue 2 – Implementing Systems Engineering in Defence [100KB PDF]

Change History

1 September 2009: This Topic added to the Toolkit for the first time.