EDA signs Carl-Gustaf ammunition contract with Saab
Saab has signed a multi-annual framework agreement to provide Carl-Gustaf ammunition to the European Defence Agency (EDA) for its member states. The five-year agreement, announced on 8 July, has options for two additional years and an estimated value of up to €50 million.
The agreement falls under the EDA’s Effective Procurement Methods (EPM) initiative. This initiative aims to improve the effectiveness of military expenditure for its member nations by pooling demand through common off-the-shelf procurement. The EDA acts as a central purchasing body to conduct the contracting for a group of member states and act as a ‘one stop shop’ for cooperation.
This contract arrangement will manage the provision of different types of ammunition for the Carl-Gustaf recoilless anti-tank weapon on behalf of Estonia, Latvia, Lithuania, the Czech Republic, and Poland.
EDA will also be in charge of managing the framework contract to fully exploit the effects of pooling demand. Estonia, Latvia, Lithuania, the Czech Republic, and Poland will be able to purchase the ammunition according to their needs and budgeting cycles, benefitting from economies of scale, cost reductions, and efficiency in spending.
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