Selling to the MOD
How to sell to the MOD
The aim of this website is to guide companies through some of the steps they need to follow if they wish – either directly or indirectly – to sell to the MOD.
Every year the Ministry of Defence (MOD) spends around £16 billion on a vast range of goods and services.
The MOD is British industry’s single largest customer, with 32,000 suppliers at present. The MOD’s objective is to obtain the best long-term value for money in its contracts. It has around 1800 buyers committed to purchasing high-quality goods and services at the most economical prices and best value for money terms.
Quality and reliability are important to the MOD:
- To compromise them could put Service personnel at risk and lead to increased costs for maintenance, repair and replacement.
- As well as offering quality, the MOD wants firms competing for work to be as innovative as possible – suppliers who make the most efficient use of industrial resources.
As with any large organisation, set procedures have been laid down which must be followed if companies wish to sell to the MOD. To assist companies from the UK and overseas who are looking to the MOD as a potential market for their goods and services, the Defence Suppliers Service (DSS) exists to provide information and help.
Freephone Helpline Service
In association with the Defence Suppliers Service of the MOD, BiP Solutions Ltd provides a freephone helpline service offering businesses advice on the various publications and support services that are available to help them become suppliers to the MOD.
Callers will receive a copy of MOD Defence Contracts Bulletin magazine, a copy of the booklet Selling to the MOD and details of local purchasing contacts within MOD establishments nationwide, as well as details on how to obtain information regarding contact points within the major defence contractors, who may provide sub-contracting opportunities.
Call the Freephone Helpline on 0800 282 324.
Selling to the MOD - Edition 17
This brochure is part of the Defence Suppliers Service’s aim to provide advice and guidance to suppliers.
SMEs: How to grow your business with the MODDOWNLOAD the new interactive eBook which includes information on:
- Why should I supply to the MOD?
- How is the MOD helping SMEs?
- What should I do now?
- How do I find out more?
EU Procurement Thresholds
Low Value Purchasing
Low Value Purchasing (LVP) Officers are responsible for purchasing 'off the shelf' goods and services to aid the day-to-day running of their unit or establishment. It is their responsibility to ensure that the items they purchase meet the value for money (VfM) criteria laid down by the MOD. Every MOD unit or establishment will have an LVP Officer, therefore there is a likelihood that there will be an LVP Officer in your area.
As their title suggests, LVP Officers only have delegated authority to purchase items of a ‘low value’. This is defined as under £5000, as it links into the limits set by the Small Claims Court. However, not all LVP Officers will have a £5000 delegated authority; many are only delegated a limit of a few hundred pounds.
Procedures for selecting companies are informal. LVP Officers will select companies from a number of different routes, including local Yellow Pages and trade catalogues. Companies wishing to make themselves known to LVP Officers should send their details in writing enclosing a catalogue or leaflet, if possible. Many orders at the lower end of the pricing scale are placed with minimum formality, with quotes being sought and accepted either over the telephone or by fax or online.
It is the LVP Officer’s responsibility in the first instance, and providing the VfM criteria are met, to use the Government Procurement Card (GPC), a Visa purchasing card, as the ‘first choice’ purchasing tool. The GPC is a smarter method of purchasing low-value items and provides excellent management information. This may include line item detail and VAT information, and for this reason the GPC has been embedded in Enabling Contracts as the payment mechanism. Companies wishing to become Visa-enabled can contact any high street bank. In cases where goods or services conforming to a particular quality standard are required, a company will have to show that they meet that requirement.