Intergovernmental Regime on the Defence Procurement

Photoxpress

On 21 November 2005 the Ministers of Defence of the participating Member States of the European Defence Agency decided, without prejudice to their rights and obligations under the Treaties, to establish a voluntary, non-binding intergovernmental regime aimed at encouraging application of competition in Defence procurement, where the provisions of Article 346 of the Treaty on the Functioning of the European Union (TFEU) are applicable.

The Intergovernmental Regime was therefore launched on 1 July 2006 with the participation at that time of 22 of the 24 participating Member States of the European Defence Agency (today with the participation of 25 out of 26 participating Member States - except Romania) and Norway.

The Regime is operated on the basis of the Code of Conduct on Defence Procurement (CoC), which cover defence equipment purchases where the provisions of Article 346 of the TFEU are applicable. The Electronic Bulletin Board (EBB) - Government Contracts, also launched on 1 July 2006, is the key element of the defence procurement regime and provides an historic opportunity for suppliers across Europe to bid for defence contracts advertised by subscribing Member States.

Working alongside the CoC is the Code of Best Practice in the Supply Chain (CoBPSC) approved by Defence Ministers on 15 May 2006 which extends the benefits of greater competition through the supply chain, especially lower tier companies and SMEs who may not be able to bid for contracts directly but could act as sub-contractors. Its supporting electronic tool the Electronic Bulletin Board (EBB) - Industry Contracts was launched on 29 March 2007 to enable Prime Contractors and commercial buyers to advertise sub-contract opportunities.

Other elements related to the Regime are:

that are also contributing to increase transparency and open competition in the European Defence Equipment Market as a key means to strengthen the European Defence Technological and Industrial Base.

Aim

To encourage competition and increase transparency into defence procurement towards the establishment of an internationally competitive European Defence Equipment Market, as the basis to strengthen the European Defence Technological and Industrial Base.

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“None of us can any longer afford to sustain a healthy and comprehensive DTIB on a national basis. The future health, maybe even survival, of Europe’s defence industry requires a European approach, and a European strategy.” Javier Solana, Head of EDA, February 2007