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Section Two. Procurement Planning Procedures

4 PP General

4.1 PP provides a method of requesting and obtaining quotations, including Customer Price Lists (CPL) from industry. PP procedures cover the following two business practices:

(a)The procedures for issuing a Request for Quotation (RFQ), by the Customer to a potential Contractor, and the subsequent response by the Contractor.

(b)The request for establishing/updating a CPL by the Customer, the submission of CPL data by the Contractor either in response to a request for a CPL or as an unsolicited output and the response to the CPL data by the Customer.

(c)In cases where there is Pricing and Quality Services (PQS) involvement the Contractor shall and the Customer will conduct price approval outside the scope of this Def Stan. When submitting price data, the Contractor shall provide prices which have been technically and commercially approved. The pricing message shall include the Status Advice Code (TEI: SAC) ‘PD’ and Remarks (TEI: REM) where appropriate. In cases where there is no PQS involvement and prior approval has not been given to the pricing information, the pricing messages shall be qualified by the SAC ‘PC’ and REM where appropriate.

4.2PP establishes the necessary Procurement data to support the activities performed under Order Administration and Invoicing.

4.3Wherever possible, PP should precede Order Administration (OA).

5 Contractual Framework

5.1The contractual framework is the mutually agreed contractual terms and conditions under which the work/service shall be performed. The framework in the form of a contractual agreement, must be in place between the Customer and the Contractor before proceeding from the PP Stage through OA and onto Invoicing, and covers both contracts and enabling agreements.

5.2The procedures contained in S2000M, Chapter 2, do not attempt to embody contractual negotiations that precede the business of RFQ/Quotations and CPL.

6 PP Process

6.1 The PP process is as detailed in S2000M Chapter 2, subject to variation as specified in this Part of this Defence Standard.

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7 PP Transactions

7.1 The administration of PP requires the frequent exchange of business transactions between the Customer and the Contractor. The transaction matrices detailed at annex A have been tailored from those in S2000M.

7.1.1 Deviations from S2000M. Deviations from S2000M are highlighted by an asterisk (*) in annex A, with the exception of the general changes detailed below:

(a)All S2000M Conditional ‘Project Specific’ Data Elements are now Optional unless otherwise stated in annex A.

(b)The S2000M Essentialities ‘Note 4’ (with the exception of Request for Quotation Number (Text Element Identifier (TEI): RQN) in Submission of CPL/update (SN1) message and ‘Note 5’ are not utilized within this part of this Defence Standard.

(c)The Data Element User Nation Code (TEI: USR) shall be Mandatory in all cases, as detailed at annex A.

(d)Standard Remarks have been annotated against the following Data Elements/TEI:

(e) All S2000M Conditionalities have been amplified eg ‘Else not present’ or ‘Else O’.

7.2 PP Transaction Types. The PP transaction types profiled for use in this part of this Defence Standard are detailed in clauses 7.2.1 to 7.2.10.

7.2.1 Request for Quotation (Customer to Contractor) (SK1). The SK1 enables the Customer to request a price quotation from a Contractor against an individual Part Number (TEI: PNR), in conjunction with the NATO Supply Code for Manufacturer/User Nation Code (TEI: MFU), and/or NATO Stock Number (TEI: NSN).

7.2.1.1 Each SK1 will contain a Customer-unique Request Number (TEI: RQN), in combination with each identified Customer (TEI: CUU) authority.

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7.2.1.2If it is necessary to repeat a Request for Quotation (TEI: RFQ), the repeat will be indicated by incrementing the Request for Quotation Repeat Counter (TEI: RQC). For the initial RFQ, the RQC will always be 0 (zero).

7.2.1.3Price Break Data. If the Customer requires Price Break Data (TEI: PBD) within a quotation from the Contractor, the Status/Advice Code (TEI: SAC) ‘Q5’ shall be inserted within the SK1. This SAC also indicates that the Quantity (TEI: QTY) quoted in the SK1 is for guidance only.

7.2.2 Rejection of RFQ (Contractor to Customer) (SK3). The SK3 shall be used by the Contractor to inform the Customer that the SK1 has not been accepted.

7.2.2.1 The transaction shall carry the appropriate SAC and, if necessary, Remarks (TEI: REM) to indicate the reason for the rejection.

7.2.3 Response to RFQ (Contractor to Customer) (SL1). The SL1 shall be used by the Contractor to provide the Customer with a quotation in response to the requirements of the SK1.

7.2.3.1 The Contractor shall quote against the requested item, but may quote against alternative item(s), either in place of the requested item or in addition to the requested item. The following procedures apply:

(a)Single Quotation for the Requested Item. The SL1 shall offer Price information against the requested details. In this instance, the replacing item Data Elements (Replacing Nato Stock Number (TEI: RNS), Replacing Part Number (TEI: RPP), Replacing NATO Supply Code (TEI: RMU), Replacing Unit of Issue (TEI: RUI) and Interchangeability (TEI: ICY) ) shall not be utilized.

(b)Single Quotation for Replacement Item. Where the Contractor wishes to offer Price information for an alternative item, the SL1 shall re-state the requested item details and also provide the replacing item Data Elements (TEI: RNS, RPP, RMU, RUI and ICY) against which the offer is made. In this instance, the SL1 shall be sent with the SAC ‘AA’ or ‘AC’.

(c)Multiple Quotations including Alternative(s). Where offers for more than one item are made, separate SL1 messages shall be submitted. In each instance, the RQN of the original SKI shall be stated. In respect of item and price details, the instructions in clauses 7.2.3.1(a) and 7.2.3.1(b) apply. Where there is more than one quotation in response to an SK1, the second or subsequent SL1 shall be annotated with the SAC ‘PZ’.

(d)Price Break Data. If the Contractor, either of his own volition, or in response to a request from the Customer, provides the Customer with PBD within the SL1, the contractor shall insert the SAC ‘Q6’. This SAC indicates that PBD is present and that the QTY quoted within the SL1 is only a representative value from the PBD.

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7.2.3.2 If any replacing item is accepted, all future transactions shall quote the data contained in the TEI RNS, and/or RPP/RMU, and RUI.

7.2.4 Request for Establishment/Update of CPL (Customer to Contractor) (SM1). The SM1 enables the Customer to request the establishment/update of a CPL.

7.2.4.1The Customer will use this transaction to request prices, either for specified NSN/PNR within a CRE/Model Identification (TEI: MOI), or for a specific MOI/existing CRE.

7.2.4.2Where the SM1 is a Request for Establishment of a CPL, the CPL Reference Number (TEI: CRE) will be defined by the Customer, and the CPL Addendum/Amendment Number (TEI: CAA) will be generated with zeroes.

7.2.4.3The Customer will only request an update of a CPL for additions/deletions to the definition of items (eg NSN/PNR/MOI/PCN) detailed in a current CPL. Where new effective/expiry dates, Type of Price/Currency (TEI: TPC), or Price Condition (TEI: PCO) are required, the Customer will submit a request for the establishment of a new CPL.

7.2.4.4Where the SM1 is a Request for Update of a CPL, the established CRE will be quoted and the CAA will be generated with 000 (three x Zeroes). The requirement for the update of a CPL will be detailed by means of SAC, amplified by REM if necessary.

7.2.5 Rejection of Request for Establishment/Update of CPL (Contractor to Customer) (SM3). Where the Contractor wishes to reject the request for establishment/update of a CPL, the SM3 shall be used.

7.2.5.1The SM3 shall carry the appropriate SAC, amplified by REM if necessary, to indicate the reason for the rejection.

7.2.5.2The CRE and CAA quoted on the SM3 shall be identical to those quoted on the SM1.

7.2.6 Submission of CPL/Update (Contractor to Customer) (SN1). Where the Contractor wishes to submit CPL data to the Customer the SN1 shall be used, as detailed below:

(a)In response to an SM1 for the establishment of a CPL.

(b)In response to an SM1 for the update of an established CPL.

(c)For a submission to establish a CPL (not in response to an SM1).

(d)For a submission to update an established CPL (not in response to an SM1).

7.2.6.2 Where the SN1 is in response to one or more SM1s, the CRE shall be defined by the SM1. The initial CAA shall be generated with 001 (Zero Zero One) and thereafter, shall be incremented by one for each subsequent updating SN1.

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7.2.6.3Where the SN1 is a submission to establish a CPL, not in response to an SM1, the CRE shall be defined by the Contractor and the CAA shall be generated with 001 (Zero Zero One). In this case the SAC ‘PS’ shall be included.

7.2.6.4Where the SN1 is a submission to update an established CPL, not in response to an SM1, the CRE shall be the CRE of the established CPL and the CAA shall be incremented by one, with each submission. For each SN1, the SAC ‘PS’ shall be included.

7.2.6.5Where the Customer lists items in an SM1, the omission of any item from the resultant SN1 shall be taken as a refusal to offer the item concerned. Where an item from an existing CPL is omitted from an updating SN1, the existing price shall remain valid.

7.2.6.6Where the Contractor, within an SN1, wishes to delete priced items from an existing CPL, the items shall be identified with SAC ‘PR’.

7.2.7 CPL/Update Acceptance (Customer to Contractor) (SN2). The Customer will use the SN2 to accept the CPL (or update of a CPL) as quoted, listing any exceptions if necessary.

7.2.7.1Any exceptions to the CPL will be listed at Level 1 of the SN2, and reasons for rejection indicated by means of the SAC ‘1F’ and the appropriate REM.

7.2.7.2The CRE and CAA quoted on the SN2 will be identical to those quoted on the SN1.

7.2.8 CPL/Update Rejection (Customer to Contractor) (SN3). The Customer will use the SN3 to reject the complete CPL submission, or the complete update of a CPL.

7.2.8.1The SN3 will carry the appropriate SAC, amplified by REM if necessary, to indicate the reasons for the rejection.

7.2.8.2The CRE and CAA quoted on the SN3 will be identical to those quoted on the SN1.

7.2.9Status of Price Inquiry (Customer to Contractor) (SP1). The SP1 will not be used when contracting with the MOD.

7.2.10Status of Price Advice (Contractor to Customer) (SP4). The SP4 shall not be used when contracting with MOD.

7.2.11Hastening Transaction (Customer to Contractor to hasten follow on transactions) (SH6). The Customer will use the SH6 to hasten the Contractor to respond with a message outstanding as detailed in annex B. Reference should be made to the matrices detailed at annex A to Part 24 of this Defence Standard.

7.2.12Hastening Transaction (Contractor to Customer to hasten follow on transactions) (SH7). The Contractor shall use the SH7 to hasten the Customer to respond with a message outstanding as detailed in annex B. Reference should be made to the matrices detailed at annex A to Part 24 of this Defence Standard.

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