General Dynamics Closes $482M Contract With Portugal
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General Dynamics European Land Combat Systems has just finished negotiations to produce 260 Pandur II eight-wheeled armored combat vehicles for the Government of Portugal. Steyr-Daimler-Puch Spezialfahrzeug GmbH of Vienna, Austria, will be the program manager and system integrator for this $482 million (EUR 365 million) contract, with participation from other General Dynamics European Land Combat Systems elements in Europe and vehicle co-production in Portugal.
Evaluation of the contenders for this procurement program started in autumn 2003….
Steyr’s Pandur II was competing against Patria of Finland’s AMV (Armored Modular Vehicle), and fellow General Dynamics subsidiary MOWAG GmbH’s Piranha III/ LAV III, upon which the American Stryker family of vehicles is based.
According to the official Steyr release, all vehicles have 8×8 configuration and will provide a family of 15 different variants to equip the Portuguese Army and Navy. Some variants will have a Steyr SP 30 turret, and vehicle armament will range from a 12.7mm (.50 cal) machine gun to a 120mm mortar. The Portuguese Navy will receive 20 Pandur IIs with amphibious capability.
Steyr claims that the decision was based on the best commercial offer, overall persuasive technical performance during extensive vehicle tests, and Steyr’s guarantee to provide industrial offsets worth 150% of the contract value within nine years. Production will run from the year 2006 to 2009 at facilities in Portugal and at plants of General Dynamics European Land Combat Systems.
The Portuguese corporation GOM (Gestao de Operacoes Metalomecanicas) is Steyr-SSF’s local industrial partner, and will be responsible for the manufacturing such as welding of the hull and the final assembly, testing and product validation of the Pandur. They will also handle the coordination of all sub components manufactured in Portugal – intercom equipment was given as an example.
Deliveries will begin in September 2006 and continue through December 2009. See also General Dynamics’ Release
UPDATES:
Jan 30/08: Portugal takes delivery of the first set of Pandur-II APCs [in Portuguese].
Dec 22/05: DID “Patria Alleges Misconduct in Portuguese Pandur II Deal.” What’s more, they say they can prove it. Will that make a difference?

