A five-year framework agreement for supply of ammunition to five countries has been signed by the European Defense Agency and Saab Dynamics AB.
The agreement covers various types of 84mm ammunition for Saab’s man-portable Carl-Gustaf recoilless anti-tank weapon.
The European Defense Agency, a European Union organization, is acting as the central purchasing body for the ammunition on behalf of Estonia, Latvia, Lithuania, the Czech Republic and Poland under a 2013 initiative.
It will also be in charge of managing the framework contract to meet the pooled ammunition needs.
“This case presents useful opportunities for pooling of demand due to the communalities of the ammunition,” the agency said. “Common procurement was seen as the best option by contributing member states to benefit from economies of scale, cost reductions, and efficiency in spending.
“This solution allows contributing Member States to purchase ammunition according to their national needs while coping with different budget cycles.”
The framework agreement with Saab includes options for an additional two years and carries a value of nearly $68 million.
Pretty cool. I just assumed Saab made vehicles. The photo on the UPI page is pretty darn neat…