MOD Contracts Value Bands
Possible Future Purchases and Tenders Invited opportunities published on MOD DCO and within the MOD Defence Contracts Bulletin contain value banding information. Value bands are used by the MOD to indicate the approximate value of the contract being advertised. They are provided for guidance only, but are useful in helping to assess whether your organisation should consider responding to the contract notice.
The bandings are:
| Category A: | £400 million and above |
| Category A1: | £250 million to £400 million |
| Category B1: | £100 million to £250 million |
| Category C: | £20 million to £100 million |
| Category D: | £10 million to £20 million |
| Category E: | £5 million to £10 million |
| Category F1a: | £3.4 million to £6 million |
| Category F1b: | £685,000 to £3,400,000 |
| Category H1: | £93,000 - £685,000 |
| Category I1: | £40,000 - £93,000 |
| Category J1: | £10,000 - £40,000 |
Commitment to Procure
Suppliers should note that whilst notices within either the Possible Future Purchases, Contracts Notices or Tenders Invited categories within MOD DCO are placed in good faith with the aim of fulfilling a potential MOD requirement, needs, priorities or applications may subsequently change. thus, the announcement of a Possible Future Purchase or Contract Notice, is not to be construed as a commitment by the MOD to place an order as a result of the tendering exercise or at a later stage. Any expenditure, work or effort undertaken prior to a contract award is accordingly a matter solely for the commercial judgement of potential suppliers.
Advertising Regimes
The MOD already leads the way in the transparency of its tender and contract opportunities and procedures. The MOD lowered the threshold for the advertisement of its tender and contract opportunities from 1 April 2011. In line with one of the key themes of the Defence Industrial Strategy (DIS), this was one of a range of initiatives aimed at making the MOD easier for SMEs to do business with. The MOD is committed to encouraging SME entry into a broader range of defence opportunities, and this change has been welcomed by the defence trade associations.
All competitive contract opportunities for goods, services and works valued at greater than £10,000 must be advertised both before and after contract award on MOD Defence Contracts Online (MOD DCO), unless the requirement meets the approved grounds for exclusion from MOD DCO (see 'Exemptions' below). All non-competitive contract opportunities with a value of over £40,000 are also required to be advertised on MOD DCO. The MOD's requirements for goods, services and works valued at £101,323 or above must also be advertised within the MOD DCB publication.
The advertising regimes and thresholds are as set out below:
£10,000 to £101,323 - All requirements for goods, services or works valued at equal to or less than £101,323 that are not exempt from being advertised in MOD DCO, can be advertised, at the discretion of MOD acquisition staff, on MOD DCO and on the Contracts Finder portal, the exception being requirements met by call-offs under an existing framework agreement.
£101,323 or above – All requirements for goods, services or works valued at equal to or greater than £101,323 will be advertised on MOD DCO and within MOD DCB unless the requirement meets the approved grounds for exclusion from MOD DCO and MOD DCB. Where EU Public Procurement Regulations apply, the requirement must be advertised in the Official Journal of the European Union (OJEU) as well as in MOD DCO/MOD DCB.
Warlike Exempt: £810,580 or above – 'Warlike' requirements subject to Article 346 (previously Article 296) exemption of the EC Treaty valued at equal to or greater than £810,580 shall be advertised on MOD DCO, within MOD DCB and on the European Defence Agency (EDA)'s Electronic Bulletin Board (EBB) (www.eda.europa.eu/ebbweb) unless the requirement meets the approved grounds for exclusion from MOD DCO, MOD DCB or the EDA EBB.
EXEMPTIONS FROM ADVERTISEMENT IN MOD DCO/DCB
Requirements for the following, and services connected to them, are approved exemptions from advertisement in MOD DCO/DCB:
a) Nuclear weapons and nuclear propulsion systems;
b) Toxic and radioactive agents;
c) Requirements for which no meaningful unclassified advertisement can be written;
d) Requirements covered by international agreements and/or a
Memorandum of Understanding (MOU), the terms of which
preclude MOD DCO/DCB announcements;
e) Formally approved Urgent Operational Requirements (UORs)
may be exempted from adverts in the Possible Future
Purchases/Contract Notices and Tenders Invited sections of
MOD DCO/DCB and reduced timescales may be applied.
