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Pohjanmaa-class combat system acquisition to continue with Saab

Ministry of Defence 9.4.2019 10.00 | Published in English on 9.4.2019 at 10.10
Press release

On 8th April 2019, Defence Minister Jussi Niinistö decided the Finnish Defence Forces' Logistics Command will remain prepared for concluding the contract on the combat system for Pohjanmaa-class vessels with only one tenderer, Saab AB, Sweden, which performed best in the comparison of the quotations. The decision means that from now on there will be only one tenderer and that Atlas Elektronik and Lockheed Martin Canada no longer participate in the competitive tendering process. The government to be appointed after the parliamentary elections will make the actual procurement decision.

The initial intention was to make the procurement decision on the combat system in connection with a shipbuilding contract in 2018, but since the tendering process concerning the shipbuilding contract has taken longer than expected, it has not been possible to proceed as planned. Following the resignation of the Government, the procurement decision concerning the combat system can be made at the earliest after the new government has been appointed. Because of the additional delay, the Ministry of Defence considered that the decision to continue the tendering process with the tenderer that performed best in the tendering process is a fair and equitable way to continue the procurement process, because the tenderers have submitted their final quotations and their comparison has been completed. The aim is to reduce risks caused by extended tender periods and cost impacts for the tenderers and the defence administration.

The caretaker government was capable of making the decision on the basis of the above-mentioned grounds. The Office of the Chancellor of Justice was consulted about the competences of the caretaker government.

Since a procurement decision has not been made, the comparison results, the contract under negotiations or details of the system to be procured will not be made public.

Competitive tendering started in 2017

The combat system to be delivered for Pohjanmaa-class vessels will consist of weapons, sensors, and command and control systems and their integration into vessels. The preliminary invitation to tender was sent in summer 2017 to three supplier candidates - Atlas Elektronik GmbH in Germany, Lockheed Martin Canada Inc in Canada and Saab AB in Sweden. The competitive tendering, which was carried out as a consultation process, reached its final phase in 2018. All three companies were sent a request for a quotation in October 2018, after which the received quotations were evaluated and contract negotiations were conducted.

Alongside the combat system contract, the Pohjanmaa-class vessels will be equipped with torpedoes, surface-to-surface missiles, a surface-to-air missile system and naval guns that will be removed from the Hamina-class vessels.

Inquiries: Lauri Puranen, Program Director, Ministry of Defence, tel. +358 295 140 403, and Eemeli Peltonen, Communications Manager, Ministry of Defence, tel. +358 295 140 125.