Designing a Framework for Bidding and Estimating Life Cycle Cost in Indian Defence Sector: A Systematic Approach
| Author | Gyanesh Kumar Sinha,Mukesh Kumar Gupta |
| DOI | http://doi.org/10.1177/00195561221120938 |
| Published date | 01 March 2023 |
| Date | 01 March 2023 |
| Subject Matter | Articles |
Designing a Framework
for Bidding and
Estimating Life Cycle
Cost in Indian Defence
Sector: A Systematic
Approach
Gyanesh Kumar Sinha1 and Mukesh Kumar Gupta2
Abstract
Lifecycle Management (LCM) is the process of managing the entire lifecycle of prod-
ucts or services right from the inception (design, manufacture, supply) stage to the
maintenance and disposal of products. It integrates the people, data, processes
and business systems and provides product information backbone for enterprises
and their extended units. LCM in the defence sector is a very critical and complex
process. This is specifically mandated in the operational framework defined by the
Government of India at the proposal stage itself. The main objective of the cur-
rent study is to identify the various challenges being experienced by the companies
in executing LMC, especially in the defence sector and critically examine various
methods and practices of the bidding system. Crafting a strategy for participating
companies, in defence projects in India and winning them, is considered a difficult
task. This study evaluates the international best management practices and applies
the maturity model for contract management as being practised in the Netherlands.
This maturity model consists of a model for the identified tactical level and opera-
tional level in contract management. These two models can help an organisation to
determine their ‘as is’ situation and structured review system, identify key factors
those having influence on the optimal level found in this process, and their ‘to be’
situation. The current research also proposes a review gates system to enable organ-
isations to facilitate a systematic approach in analysing any project opportunity in the
context of the procurement life cycle as per guidelines and policies defined by
Defence Procurement Procedures (DPP), Government of India. Additionally, a detailed
framework has been suggested to generate and maintain agreed cost estimates
within the wider business context.
Keywords
Lifecycle management in defence, lifecycle cost, cost estimation, defence projects,
bidding stage review
Article
Indian Journal of Public
Administration
69(1) 151–160, 2023
© 2022 IIPA
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DOI: 10.1177/00195561221120938
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1 School of Management, Bennett University, Greater Noida, Uttar Pradesh, India.
2 GD Goenka University, Gurgaon, Haryana, India.
Corresponding author:
Gyanesh Kumar Sinha, School of Management, Bennett University, Greater Noida, Uttar Pradesh, India.
E-mails: gyanesh.sinha@bennett.edu.in, gyaneshsinha76@gmail.com
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