Estonia makes a large-scale investment for the maintenance of EDF’s vehicle fleet

The Centre for Defence Investment announced two public procurements with the objective of finding long-term partners for repair and maintenance work of the armoured vehicles and wheeled vehicles of the Estonian Defence Forces. The estimated total volume of the agreements amounts to 250 million euros.

According to Ivar Janson, Armoured Equipment Strategic Category Manager of the Centre for Defence Investment, this constitutes a significant and extensive investment in the Estonian defence industry, which provides the opportunity for local companies to develop their competence and infrastructure. “Only by increasing the capability of companies are we able to sustainably ensure the best readiness of the technology of the Defence Forces,” said Janson, and added, “The maintenance and repair of vehicles is the most labour-intensive part of ensuring the readiness of the fleet and it must ensure the high availability of the equipment assigned for the units, which means that at any moment of time, more equipment is ready to respond.”

The fleet of armoured vehicles and wheeled vehicles of the Estonian Defence Forces has increased significantly in the last few years and is due to increase further in the near future. This decade, there are plans to additionally acquire approximately 200 armoured vehicles and up to 500 wheeled vehicles, which also accounts for replacing the existing vehicles. The Defence Forces have a total of nearly 5,000 vehicles at their disposal.

“The technical complexity of modern vehicles engineered for defence purposes has increased and it requires an ever higher competence from providers of repair and maintenance services. In the context of the small market, this requires investments from companies and long-term and large-scale agreements from the state. The objective of the declared public procurements is to create sustainable and efficient competition on the market that ensures the quality of the service and helps maintain a reasonable final price,” emphasised Janson. “The allies stationed in Estonia have also expressed their interest in having their equipment repaired at a local partner with the objective of shortening delivery times and thereby increasing the readiness of the equipment for participating in training and warfare,” he added.

According to Toomas Kalda, Vehicle Category Manager of the Centre for Defence Investment, the new arrangements should, in the long perspective, result in significantly shortened queues for the repair and maintenance of equipment and in summary, the availability and readiness of equipment will improve.

The framework agreement for the maintenance and repair work of armoured vehicles will be entered into for 10 years with a maximum of 3 tenderers. The contractual partners will assume the obligation of developing their workshops to comply with the requirements of the Weapons Act, which requires additional investments from all potential tenderers. The total volume of the framework agreement is approximately 200 million euros.

The total volume of the public procurement for the maintenance and repair work of wheeled vehicles is approximately 50 million euros and the framework agreement will be entered into for 7 years with several tenderers, which allows sharing orders between them and dispersing the work load.