Sweden Picks Patria’s AMV, But Court Overturns It
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Sweden’s FMV defense procurement agency recently selected Finland’s Patria for a EUR 240 million contract to deliver 113 AMV (Armoured Modular Vehicle) wheeled Armored Personnel Carriers (APCs) to the Swedish Armed Forces. The 27 tonne AMV has a crew of 3, and can carry up to 9 soldiers. A varied set of turrets and modules can configure it for different roles, from MEDEVAC through to IFV or even automated mortar carrier.
The Swedish contract covers 5 different versions, and also includes an option of additional 113 vehicles. The vehicles will be manufactured in Finland, with subcontractors in Finland and Sweden that will deliver industrial offsets. Swedish firms will also be used to provide long-term support. The vehicles will be delivered between 2011-2013, if the Swedish government approves the FMV’s decision.
A matter that has become moot, as a Swedish court nullifies the FMV’s choice and forces a re-compete…
I Coulda Been a Contenda…
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In February 2008, Sweden canceled BAE Hagglunds’ SEP program, which would have produced a modular, hybrid-drive amored personnel carrier that could be fielded in tracked or wheeled variants. BAE has continued to invest in SEP, and Sweden remained in their sales funnel as its FMV procurement agency threw the competition open to international players. Sweden’s subsequent decision is a blow to the platform, but not a decisive one.
The move has nonetheless triggered significant consequences at BAE. Reports say that 300 – 400 employees, or about 30-40% of their total workforce, will lose their jobs at BAE Systems Hagglunds in Ornskoldsvik. BAE Systems Hagglunds has filed a lawsuit with the Stockholm District Court, and received an injunction. Eventually, it won the case and overturned the FMV’s decision, forcing a re-compete.
Meanwhile, Patria’s AMV continues to build on its global popularity. It has now won about 1,200 orders and competitions in Finland, Croatia, Poland, Slovenia, South Africa, and the UAE. Some of those vehicles have seen combat use in Afghanistan, where Sweden has also deployed a handful of troops. Barring further legal setbacks, Sweden may yet add itself to Patria’s AMV customer list.
Contracts and Key Events
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Oct 29/09: The Stockholm County Administrative Court decides that the FMV’s decision to award the AWV 2014 contract to Patria’s AMV instead of the SEP must be canceled. Due to problems with the procurement process, the competition must start over, or the government must decide to appeal and then win that appeal.
Grounds for the court’s rulings involved Sweden’s Public Procurement Act, and included an ‘unreasonably’ short tender period; a prohibited substantial change in the tender specifications that called equal treatment into question; obscure specifications; and providing unclear information to bidders. This is a legal victory for BAE Hagglunds, who took the case to court on July 3/09. Helsingin Sanomat | News Room Finland | Defense News | Europe News | Patria’s release says:
“Patria regrets the decision of the Administrative Court’s decision. However, Patria is confident to succeed even in the new tender process as Patria AMV is considered to be a high quality vehicle proven in the international crisis management operations.”
July 10/09: The Stockholm District Court grants an injunction preventing the AMV deal from moving forward until the court has had a chance to review all the related documentation and render a final decision. Sweden’s The Local.
July 7/09: The Local reports that on this day:
”...documents have emerged showing that in an evaluation carried out two years ago, FMV had actually found the Hägglunds vehicle to be the only armoured vehicle wwhich fulfilled the requirements set out by the Swedish military, according to SR.”
July 3/09: BAE Systems Hagglunds files a lawsuit with the Stockholm District Court, claiming that the FMV has violated rules for public bidding.
Meanwhile, the firm prepares to lay off about 320 of its 1,000 or so employees. The opposition party Social Democrats are urging the FMV to choose BAE Hagglunds in order to save Swedish jobs, and the deal is effectively postponed until the Stockholm District Court comes to a decision. The Swedish Wire | Svenska Dagbladet [ in Swedish] | Defense News.
July 2/09: BAE’s Managing Director of Global Combat Systems David Allott pens a letter to the Swedish government. It expresses surprise and disappointment at the decision to favor Patria’s AMV over the Swedish-designed SEP, and continues:
“BAE Systems has recently decided to lead our Global Combat Systems Vehicles business from Sweden, and a favourable decision in the Armored Wheeled Vehicle competition for SEP, would have further strengthened this business…. At the moment 90% of our Swedish product is exported, but this cannot continue without new programs and the active support of the Swedish government.
A successful decision on SEP would have given the company the confidence to make further investments to establish a long term globally competitive franchise with clear economic benefits to Sweden, including export royalties….”
See: Dagens Industri [in Swedish] | The SVT report is in Swedish, but the video includes a look at the English language letter.
June 25/09: Sweden’s FMV procurement agency announces its selection of Patria’s AMV as Sweden’s next armored personnel carrier, via a EUR 240 million contract for 113 AMVs, in 5 different versions. FMV | Patria | The Swedish Wire | Finland’s YLE news | Jane’s re: BAE layoffs | Radio Sweden re: layoffs.
Additional Readings
- RAND Corporation (2008) – In the Middle of the Fight: An Assessment of Medium-Armored Forces in Past Military Operations. Excellent background regarding the military uses and limits of medium-weight armored vehicles.
