Defense industry - Green light for new digital radios for the Bundeswehr
The Düsseldorf Higher Regional Court has given the go-ahead for the controversial equipment of the German armed forces with digital radios. The major contract, which is said to be worth more than one billion euros, was awarded to the Munich-based company Rohde & Schwarz. The French Thales Group was left empty-handed and lodged an appeal. On Friday, the Higher Regional Court rejected this as inadmissible in a legally binding decision (case no. VII Verg 22/23).
The appeal was inadmissible simply because it had not been lodged within the two-week time limit, the public procurement senate chaired by Judge Christine Maimann ruled.
However, the court also stated on Friday that it had no prospect of success in terms of content. Following Russia's attack on Ukraine, which violated international law, the German government changed its approach to the digitalization of the Bundeswehr, dispensed with a lengthy procurement procedure and awarded the contract directly.
This was permissible, as the Act against Restraints of Competition expressly permits this in such a case. The Federal Republic was allowed to act in this way in order to protect its essential security interests. The overall situation for the procurement of a digital command and control radio system had changed with Russia's war of aggression against Ukraine.
The specific modalities are classified as secret. How many devices are involved and whether the rumored order volume is correct is already classified as secret, according to those involved in the process.
Media reports that the digital devices do not fit into the vehicles were rejected by Lieutenant General Michael Vetter on the sidelines of the trial. The dimensions had been tested and specified for 200 different vehicle types.
The fact that the installation was nevertheless difficult was mainly due to the safety requirements: The digital radios should not pose any danger to the crew of the vehicles in the event of an enemy hit.
However, the batteries and generators of some of the vehicles are said to be too weak for the new radios. The court did not deal with the installation and integration of the devices. Thales' lawyer, Jan Byok, had argued that the direct award of the contract was primarily intended to support and promote the domestic defense industry.
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- Despite the loss to Thales, the Federal Government is pleased with the decision of the Higher Regional Court in Bavaria, which has given the green light for the German armed forces to equip themselves with digital radios from Rohde & Schwarz.
- The German Defense industry has been given a significant boost by the controversial award of the one-billion-euro contract for digital radios to Rohde & Schwarz, a company based in Munich.
- The Higher Regional Court in Düsseldorf has rejected Thales' appeal as inadmissible and noted that the Federal Government had the right to act in the interest of national security following Russia's attack on Ukraine.
- According to sources, the installation of the new digital radios in the vehicles of the federal armed forces has been delayed due to safety requirements, and some vehicles might not have the required power supply.
- The court did not address Thales' argument that the direct award of the contract was intended to promote the domestic defense industry, which includes companies such as Rohde & Schwarz from Bavaria.
- The contract for the production of digital radios for the Bundeswehr is a rare example of a successful procurement process by the Federal Government in the highly competitive defense industry.
- The Higher Regional Court also acknowledged that the situation for the procurement of a digital command and control radio system had changed significantly following Russia's attack on Ukraine, which violated international law.
- The recent change in the German government's approach to the digitalization of the Bundeswehr, which led to the direct award of the contract to Rohde & Schwarz, has been met with controversy in the defense industry and beyond.
- Christine Maimann, the chairperson of the public procurement senate in the Higher Regional Court in Düsseldorf, played a crucial role in the admissibility decision for the controversial contract award to Rohde & Schwarz.
Source: www.stern.de
