Procurement

Contracting with the MoD

This seminar has been designed to help you understand the Smart Acquisition System, the structure of integrated project teams it has introduced and the conditions of contract currently employed.

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Why you should attend

The MoD is a key market for many suppliers, particularly under the current economic constraints. A number of seismic initiatives have taken place in the function of ‘acquisition’ within MoD. In parallel there has been an increasing requirement for MoD suppliers to deliver VFM and enhanced relationship, including effective partnering.

This seminar will provide you with an introduction to the key processes and themes impinging on MoD buyer-seller dynamics. The seminar will not be a dry academic discourse. It is a forum to facilitate ideas and actions from the participants, shaped by the presenter/facilitator, and a challenge to current practices. It will be informed with anecdotes and examples to make the subject ‘live’ and fully engage the participants. The format will be a mixture of formal presentations, discussions, case studies and exercises. The planned approach is to be highly interactive with the conclusion of the event being ‘ownership’ by the participants of the next steps. It will address subject matter relevant to commercial and contractual MoD-related relationships.

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Key benefits

This seminar will:

  • Introduce you to Smart Acquisition and the MoD’s acquisition policies
  • Provide an insight to the commercial understanding, including pricing, required for business with the MoD
  • Introduce and explain key terms and conditions used, including DEFCONs
  • Explore the skills and approaches necessary to optimise relationships with the MoD

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Who should attend?

Anyone involved with MoD contracts who comes into contact with MoD on a regular basis. This could include:

  • Contracts and commercial managers
  • Business development managers
  • Project and bid managers
  • Cost estimators
  • Financial managers

... and anyone whose decisions and actions could affect the profitable performance of MoD contracts.

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Previous participants

AEA Technology • Aeronautical & General Instruments Ltd • Aerospatiale UK Ltd • Amec Process & Energy • Andersen Consulting • Babcock Defence Ltd • BAE Sema • BMT Defence Services Ltd • BNFL • British Aerospace Defence Ltd • BT • EADS • Eversheds • Ferranti Technologies Ltd • Fuji Photo Film (UK) Ltd • GEC – Marconi Avionics Ltd • Lucas Aerospace Ltd • Magnox Electric plc • Matra • Marconi Space UK • Racal Radar Defence Systems Ltd • Rolls Royce Military Aircraft • Serco Group plc • Shorts Missile Systems Ltd • Siemens plc • Thales Aerospace • Toshiba • UKAEA • Vickers Defence Systems

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Programme

Procurement policy

  • Ministry of Defence procurement structure
  • Defence equipment and support
  • Defence Commercial Directorate
  • Value for money and the 12 themes important to MoD
  • Smart Acquisition; salient features – and benefits to suppliers
  • The Acquisition Operating Framework
  • The MoDs’ perspective on Partnering
  • Initiatives: e-commerce and reverse auctions

Contractual Risk

  • Basic principles of MoD contracts (Force Majeure? Liquidated Damages?)
  • Significance of some of the most common terms

o payment

o acceptance

o specification

o insurance

o limit of liability

o right of audit

  • Explore the impact of Partnering on contractual relationships
  • Avoiding unintended liabilities (flowdown to subcontractors)
  • Utilise a self assessment tool for commercial/MoD contract risk

Pricing

  • Pricing strategies to offer the MoD
  • General and annual reviews
  • Automatic adjustment of prices
  • The QMAC – principles and practice
  • 'NAPNOC' (pre-contract) pricing
  • Setting prices - 'firm' and 'fixed' prices
  • Target cost incentive fee contracts
  • Variation of price – typical indices
  • Recent initiatives taken by MoD

Payment

  • Incentives to perform
  • Anchor milestones
  • Vesting, title and commercial risk
  • Recovery of payments
  • Earned value management
  • Invoicing and payment profiles
  • MoD Purchase to Pay process

Defcons - Progress, termination and delay

  • Breach of contract
  • Failure to complete
  • Liquidated damages – cost impact
  • Force majeure
  • Termination provisions – 6 key Defcons

Intellectual property rights – a commercial perspective

  • Directorate of Intellectual Property Rights
  • Patents and inventions
  • Trademarks, Designs and Copyrights
  • Background and foreground technology
  • oftware and Escrow
  • International collaboration
  • Subcontracting for IPR

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Speakers

Stephen Ashcroft, BEng, MSc, MCIPS Stephen is a management consultant with Brian Farrington Ltd and a visiting lecturer at Manchester University specialising in the role of procurement, supplier management, commercial negotiation and, increasingly, tender management. Client sectors experience include defence, government, secure government. He is security cleared. He is co-author of CIPS course book on ‘contracting in the public sector’, and is peer review published on commercial negotiation skills. He started his career in Contracts at British Aerospace and is now retained by defence Buyers and Contractors (where there is no conflict of interest) on commercial matters including interpretation of DEFCONs.

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Multiple booking discount

Booking a 2nd or 3rd place on this event entitles the second and third delegate to a 10% discount. This discount only applies to bookings placed at the same time. For rates for four or more delegates please call our customer services on 0845 120 9602

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Promotional opportunities

Are you looking for new ways to promote your company? Kaplan Hawksmere events are an ideal platform to reach your potential customers directly. We create tailor-made packages to suit your company's needs. If you are interested in discussing opportunities (which could include exhibition space, display space or sponsorship of an event, cocktail party or lunch) please call Lisa Potterton on 020 7960 5609 or email lisa.potterton@hawksmere.co.uk.

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In-house learning and development solutions

Tailor-made training for your company. If you have a group of five or more delegates you could benefit from our flexible in-house training programmes. For more information and an initial discussion please call Gary Mee direct on 020 7960 5616 or e-mail gary.mee@hawksmere.co.uk

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