🇮🇳India

न्यूनतम लागत चयन (LCS) सरकारी खरीद में निर्णय त्रुटि (Least Cost Selection Decision Error in Government Procurement)

1 verified sources

Definition

LCS-driven procurement forces qualified private players (Skyroot, Pixxel, Dhruva Space) into unsustainable bids due to early-stage R&D costs and risk premiums. Selected vendors then face cost-plus claims, delivery delays, or technical failures. QCBS (Quality-Cum-Cost) adopted by IN-SPACe's Earth Observation PPP model and SSLV ToT program shows 40-50% lower rework rates.

Key Findings

  • Financial Impact: ₹30-50 crore annually in vendor non-performance penalties, rework, and mission delays under LCS; estimated ₹10-20 crore per satellite/launcher delayed due to unproven vendor selection; QCBS shift would unlock ₹15-30 crore annual efficiency gains
  • Frequency: Every ISRO/IN-SPACe tender cycle; affects 40-60% of private sector component procurement annually
  • Root Cause: Policy artifact: Legacy LCS procurement rule (Defense Acquisition Procedure carry-over) penalizes innovation and technical capability. No Risk-Adjusted Cost Benefit Analysis (RCBA) in bid evaluation. Private startups cannot cross cost-quality threshold simultaneously.

Why This Matters

The Pitch: ISRO/IN-SPACe wastes ₹30-50 crore annually selecting lowest-cost, highest-risk vendors under LCS. Switching to Quality-Cum-Cost Based Selection (QCBS) for critical components (70% technical / 30% cost weighted) increases vendor reliability by 60%, eliminates rework cycles, and reduces mission failures from vendor non-performance.

Affected Stakeholders

ISRO Procurement Officers, IN-SPACe Vendor Selection Committees, Private Startups Bid Management, Mission Engineering Teams (rework management)

Deep Analysis (Premium)

Financial Impact

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Methodology & Sources

Data collected via OSINT from regulatory filings, industry audits, and verified case studies.

Evidence Sources:

Related Business Risks

भारतीय अंतरिक्ष गुणवत्ता मानक अनुपस्थिति (Indian Space Quality Standard Absence)

Estimated ₹50-150 crore annually in rework, scrap, mission delays, and quality assurance redundancy; typical mission loss from single counterfeit component: ₹10-50 crore per satellite/launcher failure

अंतरिक्ष घटक प्रोक्योरमेंट विलंब और प्रोजेक्ट ओवरराన (Spacecraft Component Procurement Delays & Project Overruns)

₹20-40 crore per delayed mission (facility costs ₹2-5 crore/month, team retention ₹5-10 crore, customer penalties ₹10-20 crore); typical ISRO mission portfolio loses ₹50-100 crore annually to procurement-induced delays

विक्रेता प्रमाणन और परीक्षण सुविधाओं की कमी (Vendor Certification & Testing Facility Gap)

₹2-5 crore per vendor certification delay (18-24 month cycle vs. 6-9 month optimal); ₹15-25 crore annually across private supplier base; estimated ₹50-75 crore in deferred revenue from unqualified vendors

अनुदान निधि उपयोग प्रमाणपत्र (FUC) में विलंब के कारण निधि रिलीज में देरी

₹50,000–₹5,00,000+ per delayed submission cycle (estimated based on average ISRO project grants ranging ₹10–₹50 lakhs; delay penalties typically 2-5% of annual allocation or potential ₹20,000–₹100,000+ in opportunity cost of delayed disbursement).

स्वीकृत परियोजना लागत में ओवरहेड सीमा उल्लंघन से अतिरिक्त संस्थागत लागत

₹50,000–₹2,00,000 per project (typical for projects ₹15–₹50 lakh total cost; institutions absorbing 2-8% additional overhead beyond ISRO's 20% cap).

निषिद्ध उपयोगों के लिए अनुदान विचलन और निधि वापसी जोखिम

₹1,00,000–₹10,00,000+ per violation (full project overhead clawback or 10-50% of disputed expenses; ISRO may suspend future grants).

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