The Challenges of Contract/ Project Implementation

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  • Topic: Ministry of Defence, Cost, The Capital
  • Pages : 4 (1008 words )
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  • Published : March 10, 2011
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To prevent diffusion of responsibility, dedicated teams should be in place for the entire duration of a project, especially for non-R&D projects. The team should be mandated to stick to sanctioned time and cost but sufficiently empowered to make minor alterations in the scope. The team may be asked to sign a performance and integrity related MoU and assured of necessary support. This should include assured funding support because old projects may sometimes gasp for funding as new priorities take over with change of key decision makers.

The Ministry of
Defence has been
facing problems in
expediting the
capital acquisition
process despite
several reviews of
Defence
Procurement
Procedures.
Vol 4. No 1. January 2010 65
appropriate management structures for projects and contracts, the constituents of Programmes and Plans. As we go down the organised cluster of activities from Plans to Programmes, Projects and Contracts, the cluster is more sharply defined in terms of the scope of work, costs and time frames but uncertainties still persist to a varying degree of complexity. That leads to the problems which are the subject matter of this paper.

The Ministry of Defence has been facing problems in expediting the capital acquisition process despite several reviews of Defence Procurement Procedures. An important objective of this seminar is to look into systemic deficiencies resulting in persistent under-utilization of MoD's budgetary allocations especially on modernization of the Forces. During the last decade (1999- 00 to 2008-09), the defence capital acquisition budget has grown by nearly four-fold to little less than Rs.37,500 crores, thus indicating the nation's collective effort and commitment to modernize its armed forces. The increase in defence capital budget notwithstanding, acquisition of capabilities required by the defence forces within a stipulated time and at an optimal cost poses a major challenge before the defence establishment. Despite...
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