New legislation will create a central procurement agency and allow for advance payments to smaller firms, among other things.

Germany has unveiled sweeping defence procurement reforms that seek to speed up access to military equipment for its armed forces, a 23 July announcement from the Federal Ministry of Defence (BMVg) has revealed.

Dubbed the ‘Planning and Procurement Acceleration Act’ (BwPBBG), the reforms have been passed by the German Cabinet and aim to increase the German military’s “operational readiness”, the BMVg said.

Essentially an overhaul of the existing Bundeswehr Procurement Acceleration Act, this new legislation will extend the previous legislation’s scope to cover any public contracts that serve the needs of the German military, rather than just contracts dealing specifically with military equipment. This includes medical supplies or construction services, for example.

Another key reform – especially for industry – is the raising of financial procurement thresholds, meaning fewer acquisitions will require competitive tenders. This will allow more contracts to be awarded directly, using simpler and faster procedures.

Advance payments are also being introduced, which will benefit start-ups and smaller firms in particular.

Additionally, the BwPPBG will allow procurements to be carried out with no tender if this is necessary for cooperation with allied armed forces.

Companies from certain countries can also be excluded by the Bundeswehr from procurement processes in the interest of security, the act added.

Other reforms under the BwPPBG include the establishment of a central procurement agency and the removal of the obligation to award contracts by lot until the end of 2030. The BwPPBG will come into effect at the beginning of 2026 until 2035, pending approval from the Bundestag, Germany’s parliament.

“Russia's invasion of Ukraine in 2022 changed everything. For the first time since the Cold War, Germany and its allies are facing a concrete military threat. The Bundeswehr is therefore refocusing on its original core mission – national and alliance defence”, the BMVg said.

“Equipping the troops quickly and with modern equipment for this purpose is more important than ever”, it added.

DSEI Gateway News is part of DSEI UK and the broader Clarion Defence portfolio. 
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