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Code of Practice on the Handling of Innovative Proposals

Innovative ideas which could lead to more cost-effective ways of meeting defence requirements are encouraged and welcomed by MOD.

As defined by MOD innovation may take one of two forms:

  • innovative bids - imaginative or novel solutions made in response to an invitation to tender but not necessarily in a way envisaged in the tender documents; or,

  • innovative proposals - unsolicited suggestions or ideas made before MOD has launched a feasibility or scoping study, or is outside a competition or other acquisition process.

    Innovative bids will continue to be considered under the formal tender evaluation process. This Code of Practice is intended to ensure that innovative proposals are dealt with fairly and quickly.

    As a result of a correctly-lodged Innovative Proposal,

    MOD will:

  • Acknowledge all Innovative Proposals within 10 working days, with a statement to follow within a further 10 working days that either they will be further considered, according to this Code of Practice, and by whom, or they will not be further considered (giving reasons), or asking for further information to allow proper consideration;

  • Ensure that all Innovative Proposals are given full and fair consideration at an appropriate level within MOD and by staff who possess the appropriate technical skills;

  • Provide a full response, with a procurement plan for taking forward ideas which are accepted, within three months of the Innovative Proposal (or essential follow up information) being provided;

  • Reject or not appraise Innovative Proposals only if:

  • there is no MOD need for the equipment/service;

  • a procurement is already in progress;

  • the Innovative Proposal is not new, either because the suggestions or ideas are already in the public domain or already known to MOD;

  • no funding is available; or,

  • there remains insufficient information to properly appraise after reasonable steps have been taken to obtain clarification from the proposer.

    • In such cases, and if requested, MOD will hold a debriefing meeting with the proposer to explain the basis for MOD’s decision.

  • Operate a strict regime of commercial confidentiality in respect of Innovative Proposals except where it is established that the suggestions or ideas are already in the public domain or already known to MOD without restriction on use;

  • Consult with the proposer before disclosing general concepts of his Innovative Proposal for MOD contracting purposes and have regard to his representations and the relevant obligations of confidentiality;

  • Keep Ministers informed of responses to all major proposals or those which raise particular issues; Maintain a central database of all Innovative Proposals received, to be held by the Defence Suppliers Service;

  • Publish in the annual MOD Performance Report a statement of how these procedures are working, the numbers of Innovative Proposals received and how they have been dealt with.

    Key Features of Innovative Proposals

    The following list is not intended to be exhaustive, but as a minimum,

    THE INNOVATIVE PROPOSAL SHOULD CONTAIN:

  • an explanation of what the innovative proposal is;

  • a clear statement of the perceived MOD requirement/current operation and how this would be better satisfied, identifying the innovative features;

    price(s)/priced elements, payment mechanism, an explanation of the key drivers/variables in the figures and an estimate of other resources required from both the public and private sectors ( e.g. Equipment, Facilities etc.) and any other dependencies;

  • an outline of the proposed commercial arrangements, including the pricing mechanism, risk apportionment, allocation and potential for sharing benefits;

  • an indication of the treatment of existing assets and staff;

  • a statement of the company’s experience in the relevant area; and,

  • background financial and business data on the company involved.

    Recipients for Innovative Proposals

    Unless it is clear who in the Department should receive the proposal, it should be sent to;

    Defence Suppliers Service,
    Procurement Executive,
    Maple 2A #22,
    MOD Abbey Wood,
    Bristol
    BS34 8JH

    who will forward it to the appropriate senior manager (Top Level Budget manager, Equipment Director General, Agency Chief Executive or MOD Central Staff) for evaluation. Any innovative proposal which has a Private Finance element should be copied to the Public/Private Partnership Unit. All innovative proposals should, in any event, be copied to the Defence Suppliers Service who will maintain a central database of all innovative proposals received by the MOD.


    • Last Updated: 13 Nov 01