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Defence Procurement Procedures

Defence Procurement Procedures 
    
The common procurement procedures for materiel acquisition in the armed forces in Denmark:

(1-4) Major procurements are normally initiated on the basis of basic military requirements, which encompass the total sum of the operational, technical, environmental and/or other demands on the performance of the equipment. These requirements will form the basis of the Materiel Commands' market survey and invitation for bids, field trials requests, product improvement programs etc.

(5-6) The submitted bids are evaulated, and a recommendation is forwarded to Defence Command Denmark, containing information such as:

- A description of the products for which bids have been received
- Price
- Payment conditions
- Personnel requirements
- Necessary building modifications
- Expected future operational costs
- Involvement of Danish companies
- Recommendation of supplier

If the procurement is financed by the operational and maintenance budget, the decision will be made by Defence Command Denmark, and the contracting authority will sign the contract with the selected supplier.

(7) An application for the necessary financing of a major procurement is forwarded by Defence Command Denmark, with its recommendation, to the Ministry of Defence, MOD.

(8) The application is further prepared by the MOD, and is presented to and negotiated with the Defence Materiel Committee and The National Agency for Enterprise and Housing.

The Defence Materiel Committee, which is an advisory body, is composed of representatives from the Ministry of Defence, Defence Command Denmark, the National Agency for Enterprise and Housing, the Confederation of Danish Industries/Danish Defence & Security Industries Association, FAD and labor unions. The Defence Materiel Committee advises the MOD on matters relating to Danish industry's capabilities within the presented projects, and the Committee is also informed by Defence Command Denmark of future requirements and procurements.

The National Agency for Enterprise and Housing negotiates the Industrial Cooperation Agreements.

(9) The Ministry of Finance gives financial approval if the procurement is within the national defence budget.

(10) The Minister of Defence recommends the procurement to the Danish Parliament's Finance Committee, whose approval is prerequisite for funding allocation.

(11) Defence Command Denmark is informed about the decision and the funds are allocated.

(12-16) When funds are allocated, the Materiel Command in question is responsible for carrying out the actual procurement.



























FAD Part of Confederation of Danish Industry 1787 Copenhagen Denmark Tel: +45 3377 3066 E-mail: faddi.dk