The process for procurement of major equipment follows the following sequences:
- The process of need identification is done through a Strategic Defence Review. This process identifies gaps in our defence posture. It is followed by a process of formulation of the operational and technical specification of the desired equipment.
- Then this is followed by a market survey whose aim is to identify sources and establish contact with willing possible suppliers. This data is then presented to the EIAC for approval and budget allocation. On approval a submission is made to DTC and Treasury as usual to authorise Restricted Tendering.
- Tender documents are then prepared, but this time they are much more detailed than in other cases, because special evaluation instructions such as in-country Field and User trials are included. The trials require the equipment to be imported into Kenya and subjected to set tests by our troops in presence of the manufacturers or their representatives.
- At the end of the trials a thorough cost-benefit analysis is carried out to determine the winner of the tender. Cost-benefit analysis is the process of weighing the total expected costs versus the total expected benefits of the different equipment in order to choose the best or most profitable option. In this manner the best equipment is identified.
- The contracting process is also critical in these cases because it ensures that issues of after sales Integrated Logistic Support (ILS ) is well covered to guarantee sustainability of the equipment in service. The aim of ILS is to achieve optimum equipment availability at minimum Life Cycle Cost by influencing design and procurement to meet the need of supportability. It is a whole life discipline for ensuring that In-Service Support requirements of new equipment are considered from the earliest stages of the procurement cycle, and are monitored and refined throughout the remainder of the life of equipment.
The cost of defence equipment all over the world is very high. The DHQ procurement strategy is therefore to get the best value for money. This calls for a sound economic approach to procurement. This includes procuring equipment in the most efficient and timely manner. It further seeks to establish a long-term defence industrial base by insisting on the transfer of technology with every purchase of major equipment.
In addition DHQ places great emphasis on Whole Life Costs approach, which exposes the true cost of ownership of the equipment and value-for-money rather than considering only initial purchase costs. The current procurement method allows closer collaboration with industry while the requirement is still being defined. In this way, cost effective solutions can be offered that are acceptable to the Armed Forces.