Dutch Sign 10-Year Ammo Agreement with Rheinmetall
In December 2010, the Dutch Ministerie van Defensie signed a 10-year, EUR 200 million (about $270 million) framework agreement with Rheinmetall Defence that lets the Netherlands order a wide range of different ammunition and pyrotechnic types, from bullets and propellant charges to grenades. The first order was actually placed at the end of 2010, and involved modular propellant charges for the army’s PzH 2000NL self-propelled 155mm howitzers.
This contract replaces several existing agreements. The Dutch Army already relies on Rheinmetall for nearly all its ammunition needs, including practice and service ammunition in multiple calibers. Assured access to supllies at short notice is therefore part of the agreement. So, too, is external storage and management. The end result moves toward more of a “just in time” ammunition supply model. As a bonus, the Dutch MvD no longer has to pay value-added tax on purchases within this contract.
Dutch and German cooperation between their defense procurement groups forms a related facet of this partnership. The Dutch DMO and German BWB will undertake joint development, testing, purchasing and storage for 6 ammunition types: 44 mm and 76 mm grenades, 120 mm tank shells, 155 mm PzH-2000 howitzer ammunition, and Panzerfaust rockets. They will also share test data, and make use of each other’s testing facilities and equipment. As an initial example, a Dutch PzH-2000NL that is already in South Africa for long range and precision ammunition tests, which cannot be performed at any range in Europe, will be used by the Germans for their own tests. All results from both countries’ tests will then be shared. MvD [in Dutch | English] | Rheinmetall Defence.