Defence Procurement of the Republic of Turkey

• In accordance with the Article 117of the the Republic of Turkey, “The Council of Ministers shall be the Turkish Grand National Assembly security and for the preparation of the Armed the defence of the country.”

In this context, supply activities concerning procurement are conducted,
- under the responsibility of the MoD
- through other units authorised by the Ministry
- through the Ministry and its affiliated units

• Defence procurement will be initiated if:
- the demandsare determined by the need
- the principlesand prioritiesmeeting are determined
- the fundsrequired for the demanded service and constructional works are allocated

• Authorities in need (Service Commands responsibility of Turkish General Staff)
- set outand prioritisethe demands concerning defence procurement,
- determine the principlesand priorities demands.

MoD carries out the activities concerningthe of the appropriate funds for the required and constructional works, preparation proposal and its presentationto the National Assembly for approval.

• As per the Annual Budgetary Law Turkish Grand National Assembly, appropriation to be allocated depending services and constructional works is determined MoD.

• Supply procedures for the required services are determined by the MoD, taking the demands of the authorities in need.

• The supplied goods and services commitments will be undertaken according within the context of modernization projects, to theapproval of the Council of Ministers.

• Defence procurements carried out by realized in accordance with
- primarily the Public Procurement
- Public Procurement Contracts Law
- the other related laws, legislation, Council of Ministers.
- primarily the Public Procurement - Public Procurement Contracts Lawthe other related laws, legislation, Council of Ministers.

The procurement activities include,
- opening bids
- awarding the bids
- approving the bid awards
- arranging contracts
which are carried out by the bidding authorities Minister of National Defence.

• Ministry of Finance and authorities from Accountscontrol and inspect all of the from the announcement of the bid until the supplied goods and services. In addition to the controls and inspections Ministry of Finance, Court of Accounts Procurement Authority during the process procurement, internal audit unitof the MoD process and the accounts during or at process.

Moreover, authorities from the Ministry of in bidding commissions as natural membersin the legislation.

Expenditures related to the defence procurements examined within the context of Final Accounting the Court of Accountsin the following year submitted to the approval of the Turkish Assembly.

The approval process is the same procurements of the other institutions.

• Tenderers or contractors have the right the law or other legal rights, including execution of all these procedures, concerning procedures carried out by the MoD.

Defence Supply Systemand Its Implementation
Defence Procurement

• General Provisions

• Procurements carried out under the scope of PPL
- procurementsby the MoD
- procurementsby the units or institutions Turkish Armed Forces

• Procurements carried out under exception
- procurementfrom Public Affiliated
- otherprocurements

• Procurements for the modernisation Armed Forcesand development of industry.

General Provisions

• All procurements and constructional related with defence, security and intelligenceare conducted by the affiliated units of the scope of the general provisions of the PPL.

• In addition, daily consumption materials quantities and with small costsare procured nation-wide units or institutions which are the MoD under the scope of PPL.

• As per the Article 3/b (exceptions) of related to defence, security and intelligenceare procured only by the specialized units of the MoD.

• Units and institutions of the Turkish Armed not realize any procurement without the authority of the MoD.

“Procurements with regard to defence, intelligence pursuant to related legislation requires to be treated confidentially as approved contracting officer for each bid; involving military materials and equipment, systems materials such as aircraft, helicopters, ships, submarines, panzers, rockets, missiles and bid for development, training, manufacturing, software and ammunition and their related services aiming at military expedition stocks, operation and maintaining and procurement tools, equipment and systems within the and of intelligence, shall not be governed except prohibition and penal provisions.”

Procurements Carried out under the Scope of the Law

Procurements under the scope of PPLare two ways:
- procurements carried out by the MoD
- procurements carried out by Institutions of the Turkish Armed Forces

Procurements Carried out by the MoD

• These procurements, independent of provisions, of the related law, include works, goods and services such as all clothing, transportation, machinery, equipment.

• Procedures of the procurements carried scope of the law have been previously covered. procurements are carried out in accordance procedures explained.

• Such procurements are announced;
- in the seven nation-wide Field goods and service procurements
- in the twelve different Field Directorates together with the MoD Headquarters

• Such implementation in line with announced through Open Procedure.

• The MoD carries out all of the supply procedures units specialized and trainedon bidding, specifications, and quality control.

Procurements Conducted by the Institutions of the Turkish Armed Forces

• At the beginning of each financial year, authorizationfor expenditures and procurements only to a certain number institutions.

• Main materials, systems and basic goods/constructional works of any kind cannot the affiliated units/institutions without the the MoD.

• The procurement of daily requirements be spoiled and therefore, have to be supplied as fresh fruit and vegetables, and of small materials is providedin this way.

• The heads of the units / institutions, with the current legislation, can carry out within the financial authorization limits MoD; Limit for the year 2005 5,000 Euro

• Those procurements higher than the presented to the approval of a officer.

• Procurements are carried out within the legislation, just like the others carried out announced in accordance with the explained.

• These procurements, too, are subject to inspection.

• The objective is to provide the procurement needs of the basic needs of the nation-wide units and institutions in time.

General Provisions on Supply Executed under the Scope of Exception

• The procurement under the scope of exception, is realized to maintain the sustainability used goods and services in the Turkish or to carry out new procurements shall only if its reason is documented and approved MoD.

• For needs to be met in this context,
- sole source (direct procurement)
- open procedure
- restricted procedure are used.

• First, detailed bidding documents specifications and general terms are arranged approved by the bidding officer.

• Bidding documents concerning goods which can be procured from several domestic sources are announced, or the pre-qualified are invited to the bid by sending these documents 40-60 days before the date of the bid.

• After reviewing the bidding documents, commissions negotiate with the tenderers on firstly technical and then administrative issues.

• Following the mutual agreement on the administrative aspects of the procurement, are asked to submit their price offers additional period.

• As a result of the negotiations with the bidding documents are finalized by taking technical and administrative issues into MoD may update an estimated cost based version of the bidding document.
- Offered prices are evaluated by the bidding considering the estimated costs updated
- As part of the price negotiations, the tenderers asked to review their offers and submit including the deductions they make or reasons of the high or low price offered.
- Price negotiation and cost examination even ifan offer is requested from a single

• The commission evaluates the result submits it to the approval of the bidding with its reasons and if approved, a contract the successful tenderer.

• This contract is sent to the Ministry approval, if necessary.

• The contracts as a result of the bids source / companyis invited are put into of the priceafter the consent of the MoD and the Minister.

• In line with the contract; all activities procurement including the procurements monitored during the production process, and controlled by the units of the MoD.

• Control and examination procedures are the Quality Control Department of the MoD.

• Following the delivery of the goods and units of the Ministry of Finance carries procedurein accordance with the documents by the receiving authorities.

• If the tenderer failsto fulfillthe delivery per the contractual conditions, or these to be inadequate, sanctionsacceptedby beforehandare applied.

Procurements from Public Affiliated Enterprises

• These goods and services have dependentonthecurrent stock or the for the sustainabilityof the samesystem procurements.

• These procurements have to be realised used in harmony with the current system as,

Radios bullets systems night vision devices

Other Procurements

• Other procurements include produced nationally or in foreign countries, fact that they have to be compatible with the arms and systems currently used by theTurkish the scope of the exceptional provisions related law.

• They are announced under the legislation, and companies are given a of 40- 60 days).

• Procurement reasonsin accordance with are documentedand bidding documents are arranged.
- Generally, companies producing the same type of goods are invited as required by the Restricted following the price negotiations, procurement as per the exceptional provisions.

• Goods or services which have to be procured the exceptionalprovisionsfrom companies exclusive rights, because they are used with the ones in Turkish Armed Forces, terms of their technical, administrative aspects and reasons are stated.

• If found suitable, they are procured under the contracts signed only with the mentioned company.

• which are impossible to procure domestically used in harmony with the ones in Turkish are procured only from foreign companies exceptional provisions.

• After the requests for these procurements required documents including technical the MoD, foreign companies from which goods and services may be procured, are the bidding document is arranged soas competition.
- Open and Restricted Proceduresare announced Public Procurement Authority and Military in electronic environment, on MoD and abroad, in accordance with the legislation.

• If the procurement has to be realised foreign company, such company is invited to the bid.

Procurements for the Modernisation Turkish Armed Forces and the Development Defence-related Industries

• Procurements in this context are intended modernization of the Turkish Armed development of the Defence-related Industry.

• These activities are conducted by the the Defence Industries which is affiliated MoD .

• Implementation is carried out under the PPLand Exceptional Article 3/bof the PPL the Establishment of Undersecreteriatfor Industries No 3238.
- In order for such a procurement to be context, it has to requirea basic technology considerableinvestment in Turkey, the capabilities and investments, or has to bea based on common production.

• The realization of these procurements approval of the project by the Executive consisting of the Prime Minister, Minister Defence and the Chief of General Staff.

• A project group responsible for procurement is established. Following the funds, the involvement industry, technological gains and offset, presented to the Executive Committee.

• The Executive Committee decides implementation of the bidding procedure( Procedure, Restricted Procedure, Sole Procurement) suitable for the intended considering the activities carried out group.

• Project group prepares the bidding documentsfor procurement in question (Request /Request for Proposal) and publishesthem accordance with the determined bidding procedure.

• Besides, this document may be announced internet (www.ssm.gov.tr).

• All of the main criteria to be used in the bids are mentioned in the bidding document the companies.

• Bid Evaluation Boardconsiders the reviews all such aspects as technical, offset, cost.

• Bid Evaluation Board presents the Executive Committee.

• Contract is signed in line with the Executive Committee.

Undersecretariat for Industriesobserves whether the responsibilities are fulfilled or not.

• In this method, inspection procedures, modernization of the Turkish Armed development of defence related industries, out by an independent inspection boardconsisting the Prime Ministry, Ministry of Finance and the MoD.

Contact Information Concerning Defence Procurements

General Announcements and Legislation Info, www.kik.gov.tr

MoD Legislation and Announcements, www.msb.gov.tr

SSM Legislation and Announcements, www.ssm.gov.tr

• Defence procurements are carried out within of the current legislation.

• In the transition period, in order to carry studies concerning defence procurement considered that the participationof staff MoDin activities in such fields as;
- Green Paper,
- European Defence Agency (EDA),
- European Defence Equipment Market (EDEM), will provide a positive contributionto of the EU objectivesconcerning the Turkish within a short time.