Luxembourg, 23 January 2024 – The NATO Support and Procurement Agency (NSPA) continues to play a key role in supporting Nations and contributing to NATO’s deterrence and defence capabilities.
At the July 2023 NATO Summit in Vilnius, Heads of State and Government endorsed the groundbreaking Defence Production Action Plan (DPAP) developed by the Conference of National Armaments Directors (CNAD). This action plan, focused on replenishing stockpiles of key equipment and increasing commonality across the alliance, is structured on three key pillars: aggregating demand, addressing defence industrial capacity, and enhancing interoperability and materiel standardization.
Anticipating a central role for NSPA, the Plan envisions the Agency consolidating national munition requirements into multinational purchases. In the spirit of the DPAP, on 3 January 2024, NSPA announced a contract for a combined quantity of up to 1,000 Patriot™ Guidance Enhanced Missiles (GEM-T) in support of a coalition of nations.
Today, the Agency announces two new multinational framework contracts valued at 1.1 BEUR to Nexter Munitions (KNDS) and JUNGHANS Microtec GmbH for 155mm ammunition serving CAESAR and PZH-2000 howitzer platforms.
NSPA has awarded these contracts through its NATO Support and Procurement Organisation (NSPO) Ammunition Support Partnership (ASP) framework established in 1993 and counting 26 participating Nations to date. While the initial request was made by three NATO Allies, nine NATO nations employ CAESAR and PZH-2000 howitzer platforms. Therefore, the Agency expects broader participation into this multinational effort. This framework also provides a range of support in the areas of ammunition storage, transportation, surveillance and disposal management.
During the contract signature’s ceremony at NATO Headquarters on 23 January, before a meeting of the North Atlantic Council (NAC), Ms Stacy A. Cummings, NSPA General Manager, emphasized the value of multinational acquisition and innovative procurement methods demonstrated by this milestone. “As the lead organisation for acquisition, support and sustainment”, she stated, “NSPA provides effective multinational solutions for NATO Allies and Partners. This enables economies of scale and reduced logistics footprint under the benefits of a proven legal framework. Through our collaborative efforts, we bolster NATO’s deterrence and defence capabilities while paving the way for innovative approaches to replenish stocks of ammunition, weapons systems and equipment across the Alliance. Multinational contracts provide a clear demand signal to industry to invest in robust supply chains capable of delivering against new and urgent requirements.”
Mr Jens Stoltenberg, NATO Secretary General, added: “This new contract demonstrates that NATO’s tried and tested structures for joint procurement are delivering. Since we agreed NATO’s Defence Production Action Plan last July, the NSPA has agreed contracts worth around 10 billion dollars. This is a significant boost for our transatlantic defence industry, while making making sure we have the right forces, capabilities and ammunition. I want to thank Ms Cummings and the NATO Support and Procurement Agency for everything they do to make this possible.”
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