Sweden Picks Patria’s AMV Again, After Court Overturns It
Aug 16, 2010 16:39 EDT
(click to view full)
Contract is official. (Dec 17/10)
In June 2009, Sweden’s FMV defense procurement agency picked Finland’s Patria Oyj 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 (MEDical EVACuation) through to IFV or even automated mortar carrier duties.
A matter that has become moot, as a Swedish court nullified the FMV’s choice. Rather than waste time on appeals, the FMV red-did the competition and issued… a EUR 260 million contract for 113 Patria AMVs.
- SEP: I Coulda Been a Contenda…
- Contracts and Key Events [updated]
- Additional Readings
SEP: I Coulda Been a Contenda…
(click to view full)
In February 2008, Sweden canceled BAE Hagglunds’ SEP program, which would have produced a modular, hybrid-drive armored 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 when the FMV procurement agency threw the competition open to international players. Sweden’s initial decision was a blow to the platform, but not a decisive one. The move had long-term effects on BAE, nonetheless. 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 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. Unfortunately, it lost that re-compete. With the US Marines’ MPC competition gone as an option, Britain’s FRES-U on hold indefinitely, and alternative 8-wheeled platforms like the RG-41 emerging from within BAE Systems itself, SEP’s future hangs by a thread.
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. Now, the contract has become legal, and Sweden will add itself to that customer roster.
Contracts and Key Events
(click to view full)
Dec 17/10: Patria announces that:
“According to the decision of the Administrative Court of Stockholm announced in November the Swedish Defence Materiel Administration (FMV) has conducted the armoured wheeled vehicle tender in accordance with the act on public procurement. Patria has received a confirmation from the FMV that the contract signed in August now has entered into force.”
Aug 13/10: Sweden’s FMV awards the second competition’s contract to Patria:
“FMV has evaluated bids from five bidders based on Armed Forces requirements, including performance, economy, and reliability of delivery. The evaluation showed that the Patria AMV (Armored Modular Vehicle) is the vehicle that best meets the Swedish Armed Forces requirements.”
The SEK 2.5 billion deal (about $336 million/ EUR 260 million) is for 113 AMV armored vehicles and associated equipment, with an option to add another 113. The initial order of 113 vehicles will be delivered by the end of 2013, making it possible the Swedish Army to become operational with them in 2014.
The agreement with Patria requires 100% of the contact’s value in industrial offset work. As a starting point, Swedish heavy-vehicle maker Scania will deliver the engines, while SSAB will deliver steel armor and Akers Krutbruk will deliver ballistic protection. Suspension and electronics will also come from other Swedish companies, but the vehicles will still be assembled by Patria in Finland. Swedish FMV | Patria | M & C.
March 10/10: BAE Hagglunds is changing its SEP, removing some of the advanced features like the hybrid diesel-electric drive, and offering the lighter, cheaper result as the Alligator. Allehanda [in Swedish] | Google translate.
Nov 20/09: The Swedish FMV decides to start a new competition immediately, rather than appealing the court verdict:
“Our mission is to ensure that the Swedish Armed Forces has equipment to carry out their operations. An appeal to the court could take a long time and can thus seriously risk the delivery of the armoured wheeled vehicles as the Armed Forces need, “says Dan Averstad, commercial director at FMV.
Provided that the verdict becomes final, FMV will now on Friday, 20 November, announce a new procurement in accordance with the County Court verdict. In this new procurement FMV will have considered the four complaints from the court verdict.”
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.
(click to view full)
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 which 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.
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, and the AMVs will be delivered between 2011-2013, if the Swedish government approves the FMV’s decision. FMV | Patria | The Swedish Wire | Finland’s YLE news | Jane’s re: BAE layoffs | Radio Sweden re: layoffs.
Additional Readings
- DID thanks defense journalist and DII member Igor Tabak for his assistance with this article.
- Patria Oyj – Patria AMV 8×8 – Renewed Swedish AWV 2014
- 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.
