► Terma Signs Framework Agreement with Danish Defence on System Integration and Maintenance for Integrated Air and Missile Defense System

2023-01-19 – Terma and Danish Defence Aquisition and Logistics Organisation (DALO) has concluded an official agreement for Terma as the overall system integrator of integrated air and missile defense systems for the Danish Defence. The contract is a framework agreement for 30 years.

The Danish Defence Aquisition and Logistics Organisation has signed an agreement with the largest defense company in Denmark, Terma. This agreement means that Terma will be responsible for system integration of the complete air defense system, and advisor on all future air and missile defense procurements across the Danish Defence for the next 30 years.

As part of the current defense agreement, DALO is to procure an air defense system for the Danish Defence compliant to NATO requirements for the Very Short-Range Air Defence (VSHORAD) capability that forms part of Denmark’s medium brigade which is a NATO force target. This VSHORAD system can be procured through this new Framework Agreement.

The overall air defense system consists of several subsystems, such as radars, vehicles, and weapons. Under the agreement, Terma will integrate these subsystems into a single air defense system. Many of the subsystems are off-the-shelf items procured by DALO through existing framework agreements and integrated into the overall air defense system by Terma.

The future elements of the air and missile defense systems will also be part of Denmark’s national defense and will be compliant with interoperability requirements, including the ability to be part of different configurations of air defense capabilities within the land, sea, and air domains. Interoperability requirements follow NATO standards, procedures, and guidelines for the overall air defense domain.

National security interests are crucial to the agreement

“This agreement is the cornerstone of future work to build a Very Short-Range Air Defence system for the Danish Defence. For security reasons, it is essential that we contract with one main supplier who can take on the system house responsibility for the entire system, including the integration of all subsystems,” says Lieutenant General Kim Jesper Jørgensen from DALO.

“It is also essential that the overall system integration is carried out by a national supplier to safeguard essential national security interests. This should ensure that any “downtime” is minimized, and that upgrade and maintenance needs can be met without the risk of export restrictions from foreign states or problems with long supply lines. Therefore, I am very pleased to sign this 30-year framework agreement with the Danish company Terma.”

This choice of a national supplier is in line with the Government’s Strategy for the Danish Defence Industry.

A milestone for the development of the Danish Army

The Chief of the Army, Major General Gunnar Arpe, says:

“The acquisition of a modern air defense is crucial for the Army’s continued development. It will help us to have a strengthened army that is equipped for the modern battlefield.”

Terma has extensive experience with air defense integration

This framework agreement places Terma as the prime supplier of all command-and-control software, systems integration and maintenance within integrated air and missile defense for the Danish Army and Air Force. As system house, Terma assumes full responsibility for the overall integration and maintenance. Terma already has the same role on an existing contract with The Royal Danish Navy.

“Terma has extensive experience in delivering air defense solutions including the Danish Army Low Level Air Defence System M/93, DEHAWK to the Air Force, C-Flex to the Navy as well as additional solutions to customers in the export market. We are looking forward to our future cooperation with DALO and the Danish Defence, and to take on the role as overall integrator and system house for the future Danish integrated air and missile defense systems,” says Jes Munk Hansen, Chief Executive Officer at Terma.

With this agreement, DALO will ensure the rapid and safe delivery of software for command-and-control facilities and the integration of other subsystems, including for example the integration of modern missile and gun systems, radars, and communications. In addition, the 1st Brigade is assured that future air defense capabilities can be an integral part of the brigade’s operations in the overall air defense, including being able to communicate and exchange data with other air defense systems.