Estonia announces EUR 693 million tender for military wheeled vehicles together with Latvia

TALLINN - The Estonian Center for Defense Investment (RKIK), together with the Latvian Ministry of Defense, announced the largest procurement in the military field so far, the aim of which is to supply the Estonian and Latvian forces with different types of vehicles; the estimated volume of the procurement is approximately EUR 693 million.

"This procurement will give defense planners greater opportunities to fill our current capability gaps and, if necessary, to purchase lacking vehicles under an accelerated procedure. Within the framework of this procurement, it is planned to find a partner to supply the defense forces of both countries with 16 different types of vehicles over the next 10 years," Toomas Kalda, head of vehicles at RKIK, said in a press release.

"Joint procurement will definitely provide a much better position for negotiations and allow for better terms and unit prices to be achieved. In addition, we will have the opportunity to replace vehicles that have reached the end of their life cycle within 10 years. For the change of generation, it is planned to use used vehicles of the closest allies as well as new ones according to the intensity of use and economic advantage," Kalda added.

The procurement consists of two parts. In the first part of the procurement, vehicles with a carrying capacity of up to 4,999 tons will be procured, while in the second part, vehicles with a carrying capacity of five tons or more will be procured.

The vehicles to be procured can be distinguished by logistical or tactical parameters, load capacity or superstructure (load surface, dumper, hook lift system). Vehicles purchased through the large-scale procurement will be based on the vehicles of a single manufacturer, which will result in a lower cost thanks to economies of scale and a thinner logistical support chain in the future if vehicle training and the spare parts base are linked to the production of one vehicle manufacturer.

"Considering the planned end of service life of the majority of the defense forces' vehicles in 2028-2035, the success of this procurement is crucial for the defense forces," Maj. Herko Sepp, head of the equipment and weapons system department of the defense forces, said.

"As a result of the procurement, it will be possible to equip the defense forces with new vehicles essentially in the extent of the entire necessary list together with repair and maintenance support, ensuring the sustainability of the combat capability of the defense forces' units in the category of wheeled vehicles for decades," he added.

The possibility to purchase the necessary vehicles in a standard market version or other similar vehicles with a specific function from the winners of the procurement has been left in the procurement. Examples of special machinery include cranes, recovery machines and special airport vehicles.

Under the framework agreement, vehicles can be procured over the course of 10 years by the defense forces, the Kaitseliit (Defense League) volunteer corps, the Police and Border Guard Board and the agencies within the area of government of the Latvian Ministry of Defense.

The application deadline is March 7. The contract lasts for 10 years.