Written Reply by Minister for Defence Chan Chun Sing to Parliamentary Question on Defence Contracts and Procurement Approach

Mr Kenneth Tiong Boon Kiat asked the Coordinating Minister for Public Services and Minister for Defence (a) in the past ten years, how many defence contracts above (i) $10 million and (ii) $100 million awarded have been procured through closed tender rather than open tender respectively; (b) what criteria determine whether a procurement is conducted as a closed tender; and (c) whether the Ministry will consider publishing requirements for major platform replacements on GeBIZ to enable local industry participation.

Coordinating Minister for Public Services and Minister for Defence, Mr Chan Chun Sing:

The Ministry of Defence (MINDEF) conducts its procurements in accordance with the Government’s procurement principles of transparency, open and fair competition, and value for money. Given the nature of defence procurements, operational and information security are additional critical considerations for MINDEF.

MINDEF’s default procurement approach is to conduct open tenders via GeBIZ. Where there are good reasons and valid justifications, closed tenders, also referred to as limited tenders, may be conducted. Some criteria for adopting closed tenders include operational and information security considerations, proprietary or intellectual property rights, and interoperability with existing systems. Local companies are invited to participate in closed tenders if they possess the relevant products, services or expertise.

MINDEF’s defence procurements are subject to the necessary approvals, governance processes and audits to ensure accountability and proper stewardship of public funds. For security reasons, MINDEF does not publicly disclose data of our defence contracts.