Procurement for the navy - looking ahead to the 2021 federal election

Berlin, the Navy & Procurement

The year 2021 continues to promise excitement: in the second year of a global pandemic, there are signs of noticeable change and transformation in the political firmament of the republic in view of the upcoming federal elections in September.

It is understandable that Defence Minister Annegret Kramp-Karrenbauer and the Federal Ministry of Defence (BMVg) are endeavouring to implement as many of the planned military procurement projects under one roof: A total of €31.25 million in templates - if a Defence projects If the price exceeds this threshold, it must be submitted separately to the parliamentary Budget Committee - is to be confirmed by the members of both the Budget and Defence Committees in the last two weeks of the parliamentary session before the summer break (23rd & 25th calendar week). These include eleven Procurement project with relevance for the German Navy, more than half of which are not funded within the current budget planning. We read from a current issue of the griephan letters industry service the following timetable:

For the 23rd calendar week:

• Measuring boats Sea trials coast (financing not secured)
• P-3 C Successor interim solution (P-8A Poseidon - financing not secured)
• RBS 15 maritime homing missile

For the 25th calendar week:

• Replacement procurement of tactical radars for class F 123 frigate
• Obsolescence & capability enhancement SMART-L radar frigate class 124
• Regeneration of nautical guidance radar (RadEA)
• Procurement of Naval Strike Missile NSM guided missile (financing not secured)
• Development & procurement of two Class 212 CD submarines (financing not secured)
• Procurement of two class 707 naval fuel supply vessels (financing not secured)
• Procurement of three Class 424 fleet service boats (financing not secured)

The "Class 332 C minehunter" project was announced by the BMVg for the 20th calendar week, but was not presented to MPs in a timely manner. It remains to be seen whether the project will be submitted in the remaining weeks of the session. The sheer volume of projects represents a technical challenge for parliamentary operations. The MPs from the coalition parties also recognise this and have called on the Minister to submit a detailed financing plan for all the projects concerned in a timely manner. That in itself is a remarkable and, at least in recent history, unique process!

Options
Against the backdrop of a changing (security) political landscape, limited financial resources and the forecast of a sinking financial line, it is important to keep calm on the coast - an old experience from political Bonn and Berlin is: What floats, goes!

There is certainly a "coastal gang" in political Berlin across the political parties, which can be seen as a counterpart to the influence of the aerospace industry with its centre of gravity in southern Germany. In addition, the upcoming projects cannot be viewed in isolation and certainly not individually. Projects such as the procurement of two U-212 CD submarines as well as the Naval Strike Missile missile are under the auspices of German-Norwegian cooperation. Certain projects such as the Procurement of naval fuel suppliers, fleet service and measuring boats could be summarised in the financial planning as an aid package for the ailing shipyards, even outside of Section 14 (defence budget). In their letter to the Minister, the MPs have already made it clear that they are dissatisfied with the current funding process.

In this context, a watchful eye will be kept on the future of the naval shipbuilding industry. The development of the Project F 126 - formerly multi-purpose combat ship MKS 180 - A new dynamic is emerging in the relationship between the shipyards. What is to become of thyssenkrupp Marine Systems is still up in the air. There may be various European partnership opportunities here. German-Norwegian co-operation goes beyond the U212 CD project. And what about German-Italian relations? In addition to the industrial-political dimension, we expect increasing co-operation between the European partners also in operations on the seas. Experienced observers of the Berlin procurement process are therefore relaxed about the parliamentary summer break and the changing of the guard in autumn with a view to the coast.