Defence Procurement Manual

The Defence Procurement Manual is the operational guide issued by the Ministry of Defence for all revenue procurement undertaken by defence establishments, covering the purchase of stores, spares, consumables, and services that keep the Armed Forces operational on a day-to-day basis.

What is the Defence Procurement Manual?

The Defence Procurement Manual (DPM) provides standardised procedures for procurement of goods and services classified as revenue expenditure by defence units, formations, and base depots. Unlike DAP 2020, which governs capital acquisition of weapon systems and major platforms, the DPM covers recurring operational purchases, fuel, clothing, rations, maintenance spares, office equipment, and general stores.

The DPM defines:

• Procurement thresholds and the powers of various Competent Financial Authorities (CFAs) at unit, formation, command, and ministry level
• Tender procedures for revenue purchases, including open tender, limited tender, and direct purchase limits
• Indent and sanction procedures for raising procurement requirements
• Role of the PCDA (Principal Controller of Defence Accounts) in pre-audit and payment
• Vendor empanelment norms for revenue supply contracts

Revenue procurement NITs issued by defence establishments appear on the DefProc portal as well as CPPP. Suppliers responding to these tenders must comply with both DPM procedural norms and the general GFR 2017 provisions that apply to central government procurement.

Why the Defence Procurement Manual matters for Indian government suppliers

For vendors supplying consumables, maintenance spares, clothing, catering, or support services to the Army, Navy, or Air Force, the DPM is the primary rulebook. It sets EMD requirements, defines the documentation needed for vendor registration, and outlines payment terms via Running Account (RA) bills. Suppliers who understand DPM thresholds can target the right unit-level or command-level purchase offices for their product category, avoiding the lengthy DAP 2020 capital procurement cycle entirely.

Example

A textile company supplying woollen blankets to Army units responds to a NIT issued by a Military Clothing Factory. The procurement falls under DPM revenue procedures. The NIT specifies Bureau of Indian Standards (BIS) certification, EMD of INR 5 lakh, and a performance bank guarantee. The PCDA audits the bill before payment is released to the vendor after delivery and acceptance.

Frequently Asked Questions

What is the difference between DPM and DAP 2020?

DAP 2020 covers capital procurement, major weapon systems, vehicles, aircraft, and defence platforms. The DPM covers revenue procurement, the day-to-day operational stores, spares, and services that defence units need to function. Different approval chains, thresholds, and portal workflows apply to each.

Which portal publishes DPM revenue tenders?

Revenue procurement NITs are published on the DefProc portal and on CPPP. Individual defence units may also publish on their own websites or local notice boards for small-value direct purchases below the NIT threshold.

Are MSMEs given preference under DPM procurement?

Yes. DPM procurement follows GFR 2017 provisions and the Public Procurement Policy for MSMEs, which mandates 25% of annual procurement from MSMEs and includes EMD exemption and purchase preference norms applicable to all central government procurement.

How does a vendor get registered for DPM revenue supply?

Vendors typically register with the specific defence establishment, depot, or command that is the likely buyer for their goods. Some categories require DRDO or OFB approval of technical specifications before a vendor can qualify for supply contracts.