On Tuesday, January 23th, the NATO Support and Procurement Agency (NSPA) announced the signing of contracts worth a total of 1.1 billion euros ($1.2 billion) with Nexter Munitions (part of KNDS: Krauss-Maffei Wegmann+Nexter Defense Systems) and Junghans Defence (Diehl Defense + Thales) for the supply of 155mm artillery ammunition along with fuzes for self-propelled howitzers CAESAR and PzH 2000.
Photo: NATO
During the NATO Summit in Vilnius on July 11-12, 2023, heads of states and governments involved approved the groundbreaking Defense Production Action Plan (DRAP) developed during the Conference of National Armaments Directors (CNAD). This action plan, focused on replenishing critical equipment stocks and enhancing uniformity throughout the Alliance, is based on three key pillars: meeting demand, leveraging defense industry potential, and increasing interoperability and standardization of materiel stock.
Anticipating the central role of NSPA in these efforts, DRAP envisions that the agency will consolidate the demand of NATO member states for ammunition through international procurement. In line with the DPAP plan, on January 3, 2024, NSPA announced the signing of a framework agreement with the joint venture company COMLOG (comprised of the American corporation RTX and the European consortium MBDA) for the production and delivery of up to 1000 PAC-2 GEM-T interceptor missiles for the medium-range air and missile defense systems MIM-104 Patriot in four countries: Germany, the Netherlands, Romania, and Spain.
NSPA awarded these contracts through its NATO Support and Procurement Organisation (NSPO) within the Ammunition Support Partnership (ASP), established in 1993 and currently consisting of 26 member states. Although the initial proposal was submitted by three NATO members, nine Alliance countries utilize CAESAR (Camion Équipé d’un Système d’Artillerie) and PzH 2000 (Panzerhaubitze 2000) howitzers. Therefore, the Agency expects broader participation in this multinational effort. The framework agreement also provides various forms of support in areas such as ammunition storage, transportation, monitoring, and management.
The joint purchase of ammunition from French and German companies for two types of howitzers may be expanded to include wheeled CAESAR users, namely France, and in the future, the Czech Republic, Belgium, and Lithuania, as well as PzH 2000 users, which include Germany, the Netherlands, Italy, Greece, Croatia, Lithuania, and Hungary. These purchases may also encompass the supply of ammunition as materiel assistance to Ukraine, which operates both CAESAR howitzers (from France and Denmark) and PzH 2000 howitzers (from Germany, the Netherlands, and Italy) and has ordered additional artillery pieces.
The agreements with the mentioned companies were signed by the Director General of NSPA, Stacy A. Cummings, in the presence of the NATO Secretary General, Jens Stoltenberg. During the contract signing ceremony at NATO Headquarters, ahead of the North Atlantic Council (NAC) meeting, Stacy A. Cummings emphasized the value of international orders and innovative public procurement methods, which are reflected in this achievement.
As the lead organization for acquisition, support and sustainment, NSPA provides effective multinational solutions for NATO Allies and Partners. This enables economies of scale and reduced logistics footprint under the benefits of a proven legal framework. Through our collaborative efforts, we bolster NATO’s deterrence and defense capabilities while paving the way for innovative approaches to replenish stocks of ammunition, weapons systems and equipment across the Alliance. Multinational contracts provide a clear demand signal to industry to invest in robust supply chains capable of delivering against new and urgent requirements, said Stacy A. Cummings.
This new contract demonstrates that NATO’s tried and tested structures for joint procurement are delivering. Since we agreed NATO’s Defence Production Action Plan last July, the NSPA has agreed contracts worth around 10 billion dollars. This is a significant boost for our transatlantic defense industry, while making sure we have the right forces, capabilities and ammunition. I want to thank Ms Cummings and the NATO Support and Procurement Agency for everything they do to make this possible, added Jens Stoltenberg.
