The European Defence Agency (EDA) and Saab Dynamics have announced that they have signed a framework agreement to supply Carl-Gustav ammunition to Estonia, Latvia, Lithuania, the Czech Republic and Poland. The agreement, which was finalized June 30, includes the possibility of renewal for a further two years and is estimated to be worth up to €50 million.
Under the terms of the agreement, the EDA will act as the central purchasing body, leading the procurement procedure for Carl-Gustaf ammunition under the agency's Effective Procurement Methods initiative. The agency will also be responsible for managing the framework contract to fully exploit the effects of pooling demand.
The EDA sees the arrangement as a good opportunity to pool demand due to the commonalities of the ammunition. Common procurement is expected to benefit EDA member states in terms of economies of scale, cost reductions, and spending efficiency. The agreement allows the five countries so far involved to buy ammunition according to national requirements under their different budget cycles.
The agreement is open to other agency member states.