Defense Ministry cancels procurement of armored vehicles and will announce new one

RIGA - The Defense Ministry has cancelled a EUR 200 million-worth procurement of 4x4 armored vehicles, and will announce a new one in the near future, LETA was informed by the Defense Ministry.

The Procurement Committee has established that it is not possible to eliminate the shortcomings ascertained by the Procurement Monitoring Bureau within the current procurement, and a new one will be announced in the nearest future.

As reported, the Procurement Monitoring Bureau (IUB) has banned the Defense Ministry from signing an agreement on purchase of armored vehicles worth EUR 200 million with Finnish company Oy Sisu Auto Ab, according to the information published on the internet website of IUB.

Two bidders – South African company Paramount International Marketing and US AM General LLC filed complains about the outcome of the tender.

The Defense Ministry is banned from signing an agreement with the winner of the negotiations procedure and lift the decision of the procurement commission on the result of the negotiations procedure.

According to the procurement watchdog, the Defense Ministry has committed number of violations in the procurement procedure, failing to fully reflect its needs in documentation and amending tender requirements.

LETA also reported, the National Armed Forces and the procurement committee tested the following vehicles: GTP 4x4 offered by Sisu Auto, Humwee vehicles offered by the U.S. company AM General, South African company Paramount Group's vehicles Marauder LAV, and Turkish company Otokar's vehicles Cobra.

The Defense Ministry originally said that it was planning to sign a ten-year contract with the winning bidder. The ministry explained that the vehicles would substantially improve the National Armed Forces' mobility, and that most of the tactical vehicles at the Armed Forces at the moment were 20 years old and older.