First batch of Smart Defence-procured PGMs for 2020 arrives at NSPA

The NATO Support and Procurement Agency (NSPA) on 1 September received the first of three shipments of air-to-ground PGMs for 2020, between three and 12 months ahead of schedule.

The latest order is valued at $44 million.

These munitions were acquired from the US in the Smart Defence multinational project, which involves the following 13 NATO members: Belgium, Czech Republic, Denmark, , Greece, Hungary, Italy, Netherlands, Norway, Poland, Portugal, Slovakia, Spain and the UK.

Finland also participates in the project as a NATO Partnership for Peace member.

Led by Denmark, Smart Defence was launched in 2014 to enable participating members to fulfil their air-to-ground PGM requirements in a more cost-efficient, effective and coherent manner, through multi-national cooperation. It covers munitions procurement (via the FMS process in the US) and inventory management.

NATO estimates that Smart Defence participants have already succeeded in lowering their acquisition costs by 15-20%. Another added benefit is that participants are able to draw upon each other’s PGM stocks much more easily, for instance during air operations or in a possible crisis. This flexibility means that processing times can be reduced from months to weeks or days, NATO argues.

The number of different munitions and components procured through the project has also expanded from four in the first order to 15 today.

In 2021, the project is expected to offer further benefits by opening the doors of a first multinational munition warehouse facility to participants.

NATO also has similar projects for the acquisition of land and maritime munitions, offering comparable benefits, as part of a broader effort to increase joint investments in critical capabilities for member states.

As part of our promise to deliver comprehensive coverage to our Defence Insight and Premium News subscribers, our curated defence news content provides the latest industry updates, contract awards and programme milestones.