Estonia announces largest defence procurement worth US$794mn

Estonia’s Center for Defense Investment (RKK) announces its procurement of long-term military vehicles and a manufacturing plant worth US$794mn

In an announcement made by Estonia’s Center for Defense Investment (RKK) the country has made its largest defence procurement to date. 

In joint procurement with Latvia’s defence ministry, the two will be acquiring long-term use of military vehicles and a manufacturing plant. Over the next 10 years, Estonia will procure mostly logistical vehicles including cranes, loaders and aircraft loaders.

"This procurement will give defence planners greater opportunities to plug our current capacity gaps and, if necessary, to quickly procure those vehicles which are currently lacking,” said Toomas Kalda, Sector Manager, RKK.

Alongside the RKK and Latvia’s defence ministry, the Estonian Defense Forces (EDF), Defense League (Kaitseliit), and the civilian Police and Border Guard Board (PPA) authority will be involved over the next 10 years. 

A two-phase procurement tender

Valued at US$794mn the procurement will be divided into two phases. In the first phase Estonia will procure vehicles below five tonnes, and in the second stage vehicles heavier than five tonnes. 

The vehicles will be categorised based on their logistical parameters, tactical parameters, load capacity, and superstructure. 

"The procurement will see a total of 16 different types of vehicles purchased, at significant volumes across the two countries. We will get the opportunity to replace a fleet of vehicles that have become obsolete as of today. This replacement will take place on the basis of both new vehicles as well as used vehicles purchased from the allies," said Kalda.

Estonia seeks a single tender

Estonia is looking for a single tender for not only the vehicles, but for the upkeep, maintenance, and spare parts. 

The country also plans to use a single manufacturer, with the hopes to bring in economies of scale and simplify future support chains instead of using multiple manufacturing products. 

It is also stated that the tender has leeway for both standard market versions as well as specialised versions of the vehicles. 

"Given that most EDF vehicles will reach the end of their service life during the next decade, the success of this procurement is crucial,” said Maj. Herko Sepp, Head of the EDF's Defence Equipment and Weapons Systems Department.

"Under the terms of the agreement, the EDF will be able to equip virtually all its vehicles with virtually all the necessary things within the relevant scope, together with repair and maintenance support, and ensure the sustainability of the EDF's combat capabilities in the category of wheeled vehicles for decades to come.”

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