US govt seeks industry feedback on defence procurement agreement with India

The US government on Tuesday sought feedback from its defence industry community on the reciprocal defence procurement agreement it is planning to have with India.

On behalf of the US government, the Department of Defense is contemplating negotiating and concluding a new Reciprocal Defense Procurement Agreement with the Republic of India, said a notification issued in the Federal Register on Tuesday.

DoD is requesting industry feedback regarding its experience in public defense procurements conducted by or on behalf of the Indian Ministry of Defence or Armed Forces, it said.

So far, the United States has concluded Reciprocal Defense Procurement (RDP) Agreements with 28 countries. It is done by the Defense Secretary and his counterpart from the other country.

The purpose of an RDP agreement is to promote rationalisation, standardisation, interchangeability, and interoperability of conventional defence equipment with allies and other friendly governments, said the Federal Register

These agreements provide a framework for ongoing communication regarding market access and procurement matters that enhance effective defense cooperation, it said.

Reciprocal defence procurement agreements generally include language by which the countries agree that their defence procurements will be conducted in accordance with certain implementing procedures.

These procedures relate to publication of notices of proposed purchases; the content and availability of solicitations for proposed purchases; notification to each unsuccessful offeror; feedback, upon request, to unsuccessful offerors concerning the reasons they were not allowed to participate in a procurement or were not awarded a contract; and provision for the hearing and review of complaints.

Based on the agreement, each country affords the other country certain benefits on a reciprocal basis consistent with national laws and regulations. The benefits that the United States accords to the products of qualifying countries include offers of evaluation of qualifying country end products without applying the price differentials otherwise required by the Buy American statute and the Balance of Payments Program.