CAG questions accuracy of benchmark pricing in air defence acquisitions

Says methodology leads to delay, awarding lowest bidder unsuitable for hi-tech assets

The Comptroller and Auditor General of India (CAG), in its report presented in Parliament on Wednesday, questioned the accuracy of benchmark pricing for acquiring air defence systems by the Indian Air Force (IAF). The CAG also said the practice of awarding procurement to the lowest bidder might not be suitable for highly technical defence assets. 

"For procuring highly technical products, use of the 'Best Value' method or a 'Quality-cum-Cost' assessment may yield better value for money," the report said.

Picking holes in the methodologies of IAF acquisitions, the CAG said these have been delayed since 2012-13. The acquisition backlist includes