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Industrial Cooperation Contracts for foreign defense contractors supplying to Danish armed forces

Foreign suppliers of defence equipment for more than 50 million DKK to the Danish Armed Forces will in certain cases be required to enter into an Industrial Cooperation Contract, ICC, with the Danish Business Authority (DBA).

The decision making process:
IN EACH acquisition the Ministry of Defence evaluates if industrial cooperation is necessary to uphold Danish national security interests.
2) IF SO the Ministry of Business and Growth evaluates if such an industrial cooperation will distort the civilian market.
3) IF NOT the Ministry of Business and Growth will decide to claim and offset obligation on the acquisition.
4) The offset obligation will be incorporated in the tender.
5) The Ministry of Business and Growth (DBA) will sign Industrial Cooperation Contracts with the potential foreign supplier(s).
6) The Ministry of Defence will sign the acquisition contract with the selected foreign supplier(s).  

Industrial cooperation plays an important part in the development and internationalization of Danish defense industry.

Since 2010, the value of ICC applications have been submitted in these categories:

Source: Danish Business Authority and FAD

Offset obligations for a foreign defense contractor can be fullfilled in two ways: 1) Via directs buys of defense related products and services from Danish companies or 2) Via engaging in development projects with Danish defense companies within the fields of defense products and services.

Offset obligations fullfilled:

Source: Danish Business Authority and FAD

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