Wisła: Offset Negotiations With Raytheon And Northrop Grumman Finished

On August 12, Polish Armament Group announced finalization of negotiations and signing executive contracts with Raytheon Missile & Defense and with Northrop Grumman regarding offset agreements accompanying purchase of MIM-104 Patriot PAC-3+ (Post-Deployment Build 8) anti-air and anti-missile system for the first phase of the Wisła program.

Polish Armament Group finished offset negotiations and signed executive contracts with Raytheon Missile & Defense and Northrop Grumman tied to purchase of Patriot anti-air and anti-missile system for the first phase of Wisła program / Photo: Archiwum MILMAG

The agreements cover eleven offset obligations, primarily regarding capabilities tied to the Wisła program. Signed contracts will secure training and technological support necessary for expansion of developmental, engineering, and production capacity. That will significantly accelerate modernization of anti-air and anti-missile defense. The contracts will come into force after the Minister Of National Defence signs the offset agreement annex and the Council of Ministers approves it.

Sebastian Chwałek, Chairman Of The Board of Polish Armament Group noted:

Thanks to engagement and cooperation from the Ministry Of National Defence we made a breakthrough and finished the negotiations regarding offset obligations between our partners. I would like to stress that in a good partnership, the sides will always find a way to reach a mutually beneficial agreement. The fruitful collaboration with Raytheon Missile & Defense and Northrop Grumman is another important step on the road of building strong relationships between domestic companies and development of Polish Armed Forces potential.

Shawn Rantas, director of Patriot For Poland program, Raytheon Missile & Defense added:

Engagement of Raytheon in fulfilling our offset obligations toward Poland was, and remains constant. Thanks to our regular cooperation with the Ministry Of National Defence and Polish Armament Group we reached a favorable conclusion by finalizing the agreement which creates specific, significant perspectives for Polish industry. Thanks to the established relations with Polish suppliers and that agreement, the potential and competences of Polish industry can be better harnessed to ensure the success of the Wisła program. We are eager to move forward with implementation.

Christine Harbison, vice president and a general director of Combat Systems And Mission Readiness division at Northrop Grumman said:

Contract with the Polish Armament Group is an expression of Northrop Grumman’s efforts to expand sovereign capacities of Polish industry within the framework of technological modernization of Polish Armed Forces. We intend to work closely together with the Polish Armament Group and other licensees covered by the offset program for the Wisła, striving to achieve goals set by Poland for the anti-air and anti-missile defense modernization program.

Contracts cover eleven offset obligations, primarily regarding capabilities directly tied to the Wisła program / Photo: PGZ

Raytheon Missile & Defense offset obligations will be realized in participation with 7 out of 14 companies that compose Polish Armament Group’s Wisła Consortium. License agreements between Northrop Grumman and Polish Armament Group are part of a comprehensive offset program managed by Raytheon Missiles & Derfese.

According to the contract, Northrop Grumman will provide training and technological support for the Polish Armament Group-Wisła Consortium to expand their engineering and production capabilities in the support of Integrated Battle Command System (IBCS), the key element of the Wisła program. The IBCS system was developed in cooperation with the US Army. It was purchased by Poland from the US Government in 2018 under Foreign Military Sales program.

The Polish Armament Group-Wisła Consortium responsible for realization of the program from the Polish Armament Group side is composed of fourteen entities: Polish Armament Group (consortium leader), Huta Stalowa Wola, Mesko, PIT-Radwar, Military Electronic Works, Jelcz, Autosan, OBR CTM, WZU, Tarnów Mechanical Works, Military Aviation Works–WZL1, Military Aviation Works–WZL2, PCO, and Military Communication Works No 1. Additionally, some of the unlisted companies belonging to the Polish Armament Group participate as subcontractors.

The Wisła program aims to provide medium-range air defense missile systems with a networked system of communication and command. In the first phase of the program Poland will acquire two batteries (sixteen launchers) of the Patriot system in a configuration that includes PAC-3 MSE missiles and IBCS system. Elements of the batteries, including the launchers, are currently produced in companies belonging to the Polish Armament Group.