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CHAPTER- 4
DEMAND AND SUPPLY MANAGEMENT IN BN

0401. TO&E or Authorization of Equipment

an item is purchased against an appropriate authorization or sanction of the

organization. TO&E is considered as the main authorization of purchasing an
equipment. Without having an appropriate TO&E, the requirement of an item, its
mode of operation and functions could not be justified. The necessity of TO&E may
be summarised as follows:

a. To formulate policy guideline to carryout national role.

b. To enhance service capability.
c. To obtain Approval in Principle (AIP) from AFD for procurement.
d. To use as a reference in joint service conferences.
e. To formulate organizational structure in light of the strategic aim.
f. To provide guideline at unit level for necessary action.

After taking a substantial time and effort by concerned directorate and related
members, BN prepared a draft NI regarding TO&E in three parts which is under
approval.

Warrant of Stores

0402. Warrant of Stores contains the lists of authorized allowances of naval stores
for BN ships and establishments (estbs). The list is prepared by Standing Stores
Committee (SSC)at NHQ separately for permanent and consumable stores. The
warrant of store is approved by CNS (Log) for a particular ship or establishment.
Departmental allowances are shown separately on quarter basis. Allowances vary
according to the types of ship/ estb can raise their demand to NSD. The warrant of
stores includes the following items:

a. Permanent stores – for all ships fitted item.

b. Quasi-permanent stores – for all semi permanent (which has got resale
value e.g.

c. Consumable store o- for all expandable (one time use) items.

d. Consolidated Allowance List (CAL)

Other Authorization

0403. Except those there are also some other authorization of items/stores follows:

a. D787 – for all machinery.

b. Rigging warrant- for all seamanship equipment.

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c. CFO- for all ammunitions.

d. Parts catalogue/Parts identification List – for machine spares.

Causes of Procuring Items

0404. Bangladesh Navy purchases purchase various items/spares for particular

ships/craft to upkeep running machinery/equipment or to meet shortage of items
according to the authorization given to TO&E, D787,CFO,WARRANT OF Stores etc.
Ship/Establishment raises most of the demands to NSD/NSSD against which
procurement is carried out. Except those, there also proposals from ship/estb for
addition/deletion/up-gradation/repair of various items. These types of proposal are
forwarded to NHQ by the respective ship/estb through respective admin authority
with sufficient recommendation. NHQ scrutinizes those proposals in all respect and
includes in the procurement list. Usually BN procures items for replacing
unserviceable/redundant machinery/equipment and procures ships/craft/aircraft to
face existing and future challenges.

Occasion of Raising Demand/Indent

0405. According to the Approved sanction/ scale from appropriate authority (as per
article 0102-0104) ship/estbs can raise demand to NSD .On receiving demand from
the users, NSD compiles and sends the demand/indent to NHQ for procurement.
Indent means a requisition or order of military stores (placed often through a local or
foreign agent of a foreign supplier) On the following occasions naval stores can be
demanded by the user to NSD:

a. Quarterly consumable stores as per warrant of stores.

b. Against special sanction by Naval Headquarters .

c. Permanent/Quasi-permanent stores against survey.

d. Against loss statement (BAFA-498).

e. Against transfer (S-549).

f. To replenish the stocks for the spare parts of machineries, electronic

sets and ordnance equipments.

g. To obtain stores in excess of authorized allowances (Ref: Docket &BR

96 part III Art-0102).

0406. Besides, proposal are also raised by the respective area commander or
admin authorities or concerned directorate at NHQ to replace
unserviceable/redundant/obsolete machinery or equipment and procure
new/additional/ item. However, permanent store if it is a controlled item even
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surveyed at NSD requires approval of NSPC prior asking AIP from AFD and
generally procurement proposal of such item is raised by the area
commanders/admin authorities or concerned directorate at NHQ. Finally all these
demands are sent to NHQ for procurement.

Initiation of Procurement process

0407. At the beginning of each fiscal year a procurement meeting is held at naval
headquarters for finalizing the procurement list received from NSD, area
commanders and concern directorates. The meeting is chaired by CNS and all the
PSO’s, area commanders, concern directors of NHQ and DP(Navy) attend the
meeting. The final procurement lists are prepared in two fold one is for controlled
items and the other is for uncontrolled items. The list of uncontrolled items is then
circulated to the concerned directorates for starting the procurement process. On the
other hand the list of controlled items is endorses by the NSPC and sent to AFD to
obtain AIP in two fold as follows:

a. List of controlled items which are included in TO&E – sends to Admin &
Log directorate, AFD.

b. List of controlled items which are not included in TO&E – sends to Ops &
Plan directorate, AFD.

ROLES of NSD Chittagong (NSD Ctg)

0408. The naval stores depot Chittagong (NSD Ctg) is the central warehouse for
Bangladesh navy. This is the depot where all kinds of stores ado preserved as future
stock for regular delivery and intermittent supply. Most of the demands and indents
are raised to NHQ through NSD Ctg. Ships and establishments of BN place their all
kinds of demands to NSD ctg. If the items in stock, NSD issues the item to the
particular ship/estb. If the item is not in stock, NSD Ctg raises indent to DNS/NTS. If
the item is urgently required then NSD Ctg tries for local purchase. If it is not
available in the local market then NSD Ctg sends urgent indents to DNS/DTS. The
important functions of NSD Ctg are as follows:

a. To carryout local purchase for emergency items and limited repair.

b. To forecast the requirement and place indent of regular items.

c. To store preserve and control inventory of all stores.

d. To identify and classify various materials.

e. To raise indents of bulk items/spares/surveyed items.

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f. To carryout survey, repairs, disposal of obsolete/ scrap items.

g. To issue, supply and distribute various items to the users.

h. To meet user's demands and monitor stock profiles.

j. To conduct survey of all naval stores.

0409. NSD Ctg is under the direct administrative control of COMCHIT and
operational control of nhq.nsd Khul and NSSD Dhk also share the warehouse of
NSD CTG and all of their demands have been rotated through that depot. NSD Ctg
is a full fledged organization to handle control distribution and procure any kind of
stores. Whereas, NSD khul and NSSD Dhk are the small organization run by two
/three officers to handle, control, distribute and procure stores in lesser quantity.

ROLES of NSD Khulna (NSD Khul)

0410. The role of Naval Stores Depot Khulna is to meet the demand of ships/craft
and other units stationed at Khulna. For doing so, it places demand to NSD Ctg for
supplying all the required items and NSD Ctg issues those if held in the stock. If the
items are not n the stock, NSD Khul can arrange local purchase in case of
emergency. But in other cases, items are delivered after procurement either through
NSD Ctg or DGDP. It is under the administrative control of COMKHUL and
operational control of NHQ.

ROLES of NSSD Dhaka (NSSD Dhaka)

0411. The role of naval sub stores depot Dhaka is almost same as that of NSD
Khul. NSSD Dhk receives all the demands from Dhaka area and asks supply from
NSD, Ctg. Besides NSSD Dhk carries out numbers of local purchase with the
directives of DNS/DTS on behalf of NSD Ctg and NSD Khul. It basically provides
necessary support in regard to transferring imported stores received by air for NSD
CTG and NSD Khul. In addition, NHQ used to procure immediate required and less
quantity item through NSSD Dhk either from local of foreign sources. It is under the
administrative control of admin Dhaka and operational control of NHQ.

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