Largest joint public procurement of military vehicles in the Baltic States to be conducted under Estonian supervision

Cooperating with the Latvian Ministry of Defence, the Estonian Centre for Defence Investment has announced the largest public procurement in the military sphere so far. The goal is to find one or more partners who would supply the security structures in Estonia and Latvia with vehicles of different types. The estimated cost of this public procurement is 693 million euros.

“This public procurement will provide more flexibility for our defence planners to fill in our current gaps and quickly purchase more vehicles whenever necessary. We intend to find a partner who would supply the defence forces of both countries with vehicles of 16 different types over the next ten years. The joint public procurement will certainly allow us to negotiate better terms and conditions, particularly a lower price per unit. Furthermore, we will be able to replace those vehicles that will reach the end of their service life in the next 10 years. This generational shift will include both used vehicles obtained from our nearest allies and completely new vehicles, depending on usage intensity and financial benefits,” stated Toomas Kalda, Vehicle Category Manager of the Centre for Defence Investment.

Mercedes-Benz Arocs hook lift trucks acquired for the Estonian Defence Forces in 2021.

The public procurement consists of two parts. The first part covers the purchase of vehicles with a load capacity of up to 4,999 kilograms and the second part covers the purchase of vehicles with a load capacity of 5 tonnes and more.

The vehicles to be purchased must be differentiated based on logistical or tactical parameters, their load capacity or superstructure (ordinary cargo frame, tipper, lifting device, etc.). The vehicles that will be purchased as a result of this large public procurement must be based on one of the manufacturer’s models, resulting in lower prices due to the greater bulk and a shorter logistical support chain, including training and spare parts from a single source.

“Taking into account the fact that most vehicles currently used by the Defence Forces will reach the end of their service life in the period from 2028-2035, success of this public procurement is indeed vital for the Defence Forces. The public procurement will facilitate supplying the Defence Forces with new vehicles of essentially every needed type, with necessary maintenance and repairs, ensuring that the units of the Defence Forces that rely on wheeled vehicles retain their combat readiness for decades to come,” explained Major Herko Sepp, Head of the Technical and Weapon Systems Department of the Defence Forces.

The public procurement stipulates that it should be possible to purchase vehicle versions with add-on armour and other similar vehicles with specific functionality from the winning companies. Such specific vehicles include mobile cranes, recovery vehicles and special airfield machinery.

The framework agreement will allow the Defence Forces, the Defence League, the Police and Border Guard Board and institutions under the jurisdiction of the Latvian Ministry of Defence to purchase vehicles over a period of ten years.