Performance Security waived off by DRDO

By Editor 26-Sep-2020

To support the defence manufacturing industry, DRDO and ATVP has waived off the requirement of "Performance Security" for the "Development Contracts" as per the approval of Defence Minister Rajnath Singh. This will apply to development contracts only, as defined in para 12.5 of the DRDO Procurement Manual, PM 2016, as amended. However, Warranty Bond would continue to be obtained from successful development partner to cover the DRDO/ ATVP interest during the warranty period.

This provision will be applicable for all RFPs issued in respect of development contracts after the date of issue of this amendment that is 23 September 2020. All ongoing cases of development contracts in which Request for proposal (RFP)/ contract has already been issued may continue to be regulated as per the provisions contained in the issued RFP/ contract.

Secretary DD R&D and Chairman DRDO Dr G Satheesh Reddy stated that it is another important milestone to support Industry.