There is a need to evolve a protocol for contract administration and post-contract management of all capital and revenue contracts awarded by various departments of the defence ministry and the armed forces.
Having decided to create the post of CDS, the next logical step for the government is to define its charter of duties and responsibilities. The government needs to examine not just the CDS’s role as a single-point military advisor, but also his role in other matters that are equally important in driving critical defence reforms.
The government’s decision to allow the private sector to undertake the development of complex defence equipment is a step in the right direction. It will help forge a larger innovation system to meet the diverse requirements of national security. However, caution may be required to avoid duplication of efforts and prevent indirect import.
The government seems to have little fiscal space for accommodating the demand of the armed forces for additional funds, given its quantum on the one hand and the state of its revenues on the other which are already quite stressed.
The blueprint for the operationalisation of CDS would require intensive deliberation to make sure that no aspect of its implementation is left unaddressed.
The agile acquisition or C2D2 model currently under adoption by the US for its F-35 aircraft is likely to become a necessity for acquisitions in future, as disruptive defence technologies will continue to affect military systems across the world.
Even if the Fifteenth Finance Commission manages to make a specific recommendation about the funds to be allocated for defence and internal security and the government accepts the recommendation, there can be no guarantee that the actual allocation will not fall short of the accepted level.
It would be nice to see the defence ministry setting up a task force and submitting actionable recommendations which could be considered by the finance minister while deciding the defence outlay next year.
With the latest Union budget keeping the MoD interim allocation unchanged, the MoD has an uphill task in managing its resources and in funding its modernisation programmes.
Protocol for Contract Administration and Post-Contract Management
There is a need to evolve a protocol for contract administration and post-contract management of all capital and revenue contracts awarded by various departments of the defence ministry and the armed forces.