Government skips bid process for defense purchase

Due to urgent security concerns, the Danish government is bypassing standard tendering procedures this spring for a military equipment purchase worth 18-25 billion kroner. Defense Minister Troels Lund Poulsen emphasizes the importance of rapid decision-making. Direct orders will be placed with manufacturers instead of going through the normal acquisition agency, FMI. Local leadership at military sites will also get more decision-making freedom on daily operations purchases. Acknowledging the increased risk of procurement errors, Prime Minister Mette Frederiksen is determined to ensure ample supplies, including drones and ammunition. Although EU rules mandate competitive bidding, exceptions for paramount security interests are allowed. A defense agreement has been reached by government parties and other political parties with a 190 billion kroner Defense budget from 2024 to 2033, with only 20 billion kroner currently left. Additional funding is anticipated once NATO’s force goals for Denmark are disclosed later in the year.