Overseas Procurement

This page is an extract from the full topic guidance on Overseas Procurement [129KB PDF]. It details any Constraints associated with overseas procurement, provides a summary of the Authoritative Guidance and lists any essential reading, further reading or associated documents.

If you have any queries on this topic, please contact the Sponsor by email: DGDC CS-2D-Asst-Hd.

Constraints

The European Community (EC) Public Procurement Regulations apply to overseas procurement contracts unless the nature of the work qualifies for an exemption. Reference must be made to the EC Public Procurement Regulations topic for detailed guidance on the mandatory procedures to be followed in respect of tenders subject to these Regulations.

Under United Kingdom (UK) and foreign export control legislation a licence is required to export technology related to the development, production or use of certain goods, which may be subject to end use control.

The export of items on the United States of America (US) Munitions List (ML) are subject to the Arms Export Control Acts, as implemented by the US Government's (USG) International Trade in Arms Regulations (ITARs). All such exports require an export licence. See the Procurement from the USA topic.

The Ministry of Defence (MOD) is liable for the payment of import duty on defence equipment procured from outside the European Union (EU), except where a waiver applies in accordance with the EC Council Regulation 150/2003 External link to Internet content . Under the Treaty of Rome import duty does not apply to goods procured from other EU nations.

Authoritative Guidance Summary

Technology transfers to facilitate overseas procurement may be subject to the UK Export Control Act 2002.

Other nations may seek to impose restrictions on the re-export or disposal of goods imported to satisfy a MOD requirement, which should be resisted to the greatest practical extent.

For non-competitive procurements, reciprocal pricing arrangements exist with Canada, Germany, France, Australia and the Republic of Korea. NATO nations are also covered by NATO's Guidelines for Mutual Provision of Contract Audits. Contracts with overseas contractors must make provision for such audits. Assistance from Governments other than the foregoing may be arranged through Cost Assurance and Analysis Service (CAAS) (formerly known as Cost Assurance Service (CAS)).

Acquisition teams must develop a quality assurance strategy for overseas purchases.

Generally, the terms and conditions appropriate to purchase from a UK contractor should be applied in contracts placed with an overseas contractor. Additional considerations apply to certain standard and bespoke conditions.

Generally, the tendering, tender assessment and award procedures appropriate to purchases from UK suppliers apply to overseas suppliers. Some additional considerations may apply.

When dealing with Canada and British Forces Germany refer to the additional specific guidance available in Annexes H and I. US guidance is provided in the Procurement From The USA topic.