MOD Contracts: Successfully Tendering and Managing Contracts

An In-house programme for commercial professionals contracting with the MoD. Understand the key tactics and techniques to winning and retaining MoD contracts.

Course Overview

The MoD is a key market for many suppliers, particularly under the current economic constraints. Winning and retaining contracts in the defence sector is becoming increasingly challenging. A number of seismic changes have taken place in the function of ‘acquisition’ within MoD. In parallel there has been an increasing requirement for MoD suppliers to deliver tangible VFM and enhanced relationships, including effective partnering.

This In-house training will provide your department with an insight to the key processes and themes impinging on the changing MoD buyer-seller dynamic.

This two-day in-house programme has been designed to give your commercial team the competitive advantage when tendering with the MoD, to ensure your organisation win and retain your contracts. It will:

  • Deliver insights into commercial and contractual understanding, including pricing, and the industry’s approach
  • Refresh and explain key terms and conditions used, including DEFCONs
  • Explore the skills and approaches necessary to optimise relationships between Industry and the MoD
  • Provide a forum to explore and reflect on the positive and negative relationships that develop between MoD and strategic supply chain over the long term

Your next step is to call us now on +44 (0)20 7729 6677 or email us at info@falconbury.co.uk or use our contact form and find out how we can help. There are no commitments, and if we cannot help our advice and recommendations are free of charge.

Additional Benefit of this Training

Our seminar leader Stephen Ashcroft will also review excerpts from your PQQs, ITTs, contract terms and conditions (MoD buy-side or supply-side), SLAs, SoWs, agenda templates, price schedules and any other relevant documentation that are used in your involvement in MoD contracts. He will provide constructive feedback, including identifying opportunities, risks and administrative obligations.

Sample Programme Day 1

Overview of MoD acquisition and tender process

  • Positive actions suppliers can take during the current ‘austerity’
  • Ministry of Defence procurement structure including DE&S
  • What is value for money? And the 12 themes important to the MoD
  • Smart acquisition; salient features – and benefits to suppliers
  • Identifying tendering opportunities in the MoD environment
  • The Acquisition Operating Framework and certainty of terms
  • The MoDs’ perspective on partnering

Exploration of self-assessment tool for managing MoD contract risk

  • Basic principles of MoD contracts, accountabilities, obligations and remedies
  • Significance of some of the most common terms
  • Payment
    • Acceptance and testing
    • Specification
    • Insurance
    • Limit of liability
    • Right of audit
    • Damages through life support
    • Intellectual property rights
  • Explore the impact of partnering on contractual relationships
  • Avoiding unintended liabilities (flowdown to subcontractors)
  • Utilise a self-assessment tool for managing commercial/MoD contract risk

Focusing on the MoD needs and aligning your response in their ‘language’

  • MoD values and principles – informed by examples
  • Special circumstances such as proposals for non competitive situations
  • Mirroring the language and structure of the MoD’s PQQs and ITTs
  • The value of powerful executive summaries in successfully tendering for MoD contracts
  • The biggest mistakes made when writing proposals and tenders for the MoD
  • Pitfalls of language – including the Flesch index and glossary of MoD terms
  • Eleven crucial and proven facts of successful proposals and tenders for the MoD
  • MoD presentation and post-tender stage: negotiation or clarification?

Pricing and payment models used by the MoD

  • Pricing strategies impacting on MoD tenders
  • The QMAC principles and practice – and commercial opportunities
  • NAPNOC (pre-contract) pricing
  • Setting prices – ‘firm’ and ‘fixed’ prices and related indices
  • Target cost incentive fee contracts – and commercial risk profiling
  • Anchor milestones from a commercial perspective
  • Vesting, title and commercial risk
  • Invoicing and payment profiles to mutually benefit supplier and MoD

Sample Programme Day 2

Key post contract challenges: DEFCONs – progress, termination and delay

  • Introduction to the model form of contract which underpins MoD acquisition
  • Breach of contract
  • Failure to complete
  • Liquidated damages – cost impact
  • Force majeure
  • Key personnel
  • Contract management
  • Review meetings
  • Termination provisions – the six key DEFCONs every supplier must know

Intellectual property rights – a commercial perspective

  • How suppliers can optimise commercial management of IPR with MoD
  • Directorate of Intellectual Property Rights
  • Patents and inventions, trademarks, designs and copyrights
  • Background and foreground technology
  • Software and escrow agreements
  • International collaboration
  • Subcontracting for IPR
  • Actual examples of IPR clauses and guidance on how to commercially interpret them

Strategies to manage MoD contractual obligations and enhance trading relationships

  • Post contract award strategies in the context of your organisation’s business plans
  • Identifying opportunities to enhance revenue and mitigate risk:
    • Interpretation of contractual obligations and liabilities
    • Continuous improvement and innovation
    • Value Engineering Change Proposals
    • Managing contract change
    • Demonstrating MTBF; MTTR
    • Managing the supply chain
    • Carbon footprint considerations and BS8903

Back to business – your business

Final session to discuss and agree what the participants are going to implement in their own business

Recommended Trainer

Stephen Ashcroft, BEng, MSc, MCIPS, 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 tender management. Client sectors experience includes defence, aerospace, government and 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.

Bespoke training

We can customise this course to meet the requirements of your organisation. Contact us to discuss your training requirements.

Previous customers include...

  • Arco Ltd
  • Ascent Flight Training (Management) Limited
  • Cobham Ltd
  • Cobham Microwave
  • IA Technology Limited
  • Pall Europe Ltd
  • Springfields Fuels Ltd
  • Thales Training & Consultancy
  • Thales Training & Consultancy Ltd
  • TRW Conekt

Steve's knowledge in the subject matter is vast and was evident on the examples and answers to questions given

Jonah Joannou, Contracts Officer, Thales