Italian Ministry of Defense procurement system Major procurement programs
Maj.Gen. Giovanni FANTUZZI Washington DC, 04th September 2013
ComDef 2013
SECURITY
THE BRIEFING IS UNCLASSIFIED
• Overview
• Defense Organisation - SGD/DNA • Defense Acquisition Programs process
• Major Programs
• Conclusions
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AGENDA
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GLOBAL SAFETY
TIME CONSTRAIN FOR SYSTEMS
MODERNIZATION
MODERN AND DEPLOYABLE INSTRUMENT
Economic / financial crisis
Globalization Unpredictability of threats
Removal of sovereignty Multiple generators of instability
SAFETY
SCENARIO
GOVERNMENT
CABINET
DIRECTIVE:
MILITARY
POLICY FOR
THE YEAR
2013
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ARMAMENTS POLICY
Ministry of Economy
and Finance
Ministry of Economic
Development
Ministry of Foreign
Affairs
Product &Tecnology
National Industry
University and
Reserach Centers
Countries, Agencies
and International Org.
Technical
Directorates Industrial Sector
Minister of
Defense Defense Staff
Armed Forces
Staffs
Policy and requirements
Analysis and Assesment
Procurement
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MAIN PLAYERS
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MINISTER
CHOD
Chief AIR Chief SEA
Chief LAND Chief CC
SGD/NAD
5 D.T. 4 D.G.
STAFF OFFICE UNDERSECRETARIES
2 CENTRAL OFFICES
TECHNICAL-OPERATIONAL AREA TECHNICAL-ADMINISTRATIVE AREA
ONLY TECHNICAL-OPERATIONAL
DEFENSE ORGANISATION
SECRETARY GENERAL
OF DEFENCE AND
NATIONAL ARMAMENTS
DIRECTOR
Deputy SG/DNA
III DEPARTMENT INDUSTRIAL POLICY AND
INTERNAT. RELATIONS
IV DEPARTMENT MAJOR ACQUISITION
PROGRAMS
PERSOMIL PREVIMIL
GENIODIFE
TERRARM NAVARM ARMAEREO
Deputy SG
II DEPARTMENT ADMINISTRATION
I DEPARTMENT PERSONNEL
V DEPARTMENT TECHNOLOGICAL
INNOVATION
COMMISERVIZI
TELEDIFE PERSOCIV
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GENERAL SECRETARIAT FOR DEFENSE/DNA
Market research in the international arena
Domestic industry involvement in international programs
Search for economies of scale
Economic returns in the case of exports (Royalty)
Back with technological impact on employment
Raising the professional level of personnel (government and industry)
Addressing industry to seek efficiency and international competitiveness
Involvement in complex programs also for small and medium-sized enterprises (SMEs).
Operational Requirements
Acquistion Program
Growth Country’s System
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PROCUREMENT: MAJOR HIGHLIGHTS
PRAGMATISM, FLEXIBILITY, INTERDISCIPLINARY
PROCUREMENT
DYNAMIC, TIMELY, EFFICIENT
GIP
DzP
Area Joint Staff
Area Procurement
Industry
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PROCUREMENT: ORGANISATIONAL STRUCTURES
Operational
Requirements
Approval Operational
Requirements and
Priorities
ROP
COVIRO: Joint Evaluation
Committee of Operational
Requirements
First technical solutions feasibility
Procurement
COVIRO
CHOD Approval
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GENESIS OF A PROGRAM
EO
Pre-feasibility
ROP ROD
Feasibility/definition
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GIP APPROV
E
DEFENCE GENERAL PLAN (PG-001)
REQUIREMENT PLANNING RESEARCH DEVELOPMENT $ PRODUCTION
SERVICE
SYSTEM LYFE CYCLE (RIF. SMD – L- 001)
GIP DzP DT
TECH
SPEC
ACQUISITION ITER
0
1
2
3
4
5
2012
(4,2 mld €)
2013
(4,9 mld €)
2.5
3.5
1.7
1.4
Mld €
MiSE budget
Defense Budget
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DEFENSE INVESTMENT BUDGET
Personnell
Operation
Investiment
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
10000
2008 2009 2010 2011
Data in M€
2012
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59%
17%
24%
67%
13%
20%
66%
12%
22%
66%
10%
24%
71%
11%
18%
2013
24%
67%
9%
TOTAL DEFENSE BUDGET 2008 - 2012
LoI
OCCAR
EDA European
Commission
MULTI / BILATERAL COOPERATION
CNAD
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MULTINATIONAL COOPERATION
Transnational Dimension
acquisition
alliances
joint ventures
Geographical
distribution Capital
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DEFENSE INDUSTRY
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National Defense Industry
Market
only the most competitive
industries, therefore, will
be able to survive
Borders Limited
DEFENSE INDUSTRY ITALY
BOLOGNA
LATINA
NAPOLI
ROMA
LECCO VICENZA
TREVISO
PERUGIA
MILANO
BRINDISI
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ENTERPRISE
CREATIVITY
INNOVATION
SMALL-MEDIUM NATIONAL INDUSTRY
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common objectives, even in the presence of different assumptions and purposes
DEFENSE the best system, timely at the best
economic conditions, to ensure the
country's security, and to be able to
perform the assigned task, in
accordance with international
commitments
INDUSTRY
maximum economic return,
with access
to the internal market and,
above all to the international one
DEFENSE vs INDUSTRY
PROCUREMENT PROGRAMS
Italian Armed Forces Procurement Programmes
≈4.5 Billions €/year
IT-MOD Releasable to SEDENA
Land Programmes
PZH 2000
OTO MELARA – KRAUSS
MAFFEI WEGMANN
VBM “FRECCIA” 8x8
IVECO - OTO MELARA
CONSORTIUM
MLTV “LINCE”
IVECO
NEC FORCE
ITALIA INDUSTRIES OF
FINMECCANICA GROUP
FUTURE SOLDIER
MARCONI SELEX COMM.
LARIMART – GALILEO AVIONICA
BERETTA - SISTEMI COMPOSITI –
AEROSEKUR
MLTV - AMBULANCE
IVECO - OTO MELARA
CONSORTIUM
NEW ARMOURED
VEHICLE “CENTAURO”
IVECO - OTO MELARA
CONSORTIUM
MLRS
THALES IT – CASSIDIAN - KRAUSS
MAFFEI WEGMANN – THALES FR
Naval Programmes
BLACK SHARK
WASS
FREMM
ORIZZONTE S.N.
DCNS (FRA)
U212A
FINCANTIERI
General Submarine Consortium (GER)
MU-90
WASS (ITA)
THALES, DCNS (FRA)
VULCANO
OTO MELARA
STRALES
OTO MELARA
EF2000
EUROFIGHTER
EUROJET
JSF
LOCKHEED MARTIN (industrial leader)
and ALENIA ERONAUTICA
C-27J
ALENIA AERONAUTICA
MPA INTERIM
ALENIA
AEJPT
AEM
M346 ITS
AEM
Fixed-Wing Aircraft
Programmes
Rotary-Wing Aircraft
Programmes
AW101 CSAR
AGUSTAWESTLAND
NH-90
AGUSTAWESTLAND
CH-47F
AGUSTAWESTLAND
BOEING
Missile Programmes
METEOR
MBDA ITALIA
FSAF
MBDA/ITA-MABDA/FRA-THALES
MEADS
MBDA ITALIA
NATO ALTBMD & Territorial MD
SELEX SI in 2 Multinational Consortia
(SAIC Team & TRS Team)
Space Programmes
SICRAL2
THALES ALENIA SPACE IT
TELESPAZIO
HELIOS
ASTRIUM
THALES ALENIA SPACE
TELESPAZIO
COSMO - SKYMED
THALES ALENIA SPACE IT
TELESPAZIO
MUSIS
THALES ALENIA SPACE
TELESPAZIO S.p.A.
ATHENA-FIDUS
THALES ALENIA SPACE
TELESPAZIO
VEGA
E.L.V. (AVIO – ASI)
RPS Programmes
PREDATOR A & B
GENERAL ATOMICS AERONAUTICAL
SYSTEMS INC.
AGS
NORTHROP GRUMMAN
(industrial leader)
TACTICAL RPS
AAI SHADOW 200
15 NATO NATIONS
FALCO – SELEX ES STRIX-C – ALPI AVIATION ASIO B – SELEX ES
C4ISTAR Programmes
SICOTE
SOFTWARE DEFINED RADIO
• NATIONAL SDR
• ESSOR (6 UE NATIONS )
• COALWNW (9 NATIONS)
SELEX ES
MAJIIC
+ NC3A
2
SELEX ES
DEFENCE
INFORMATION
INFRASTRUCTURE
INDUSTRIES/CONSORTIA
TO BE SELECTED
SELEX ES
VITROCISET
WI MAX Air Defence Radar Network
COUNTERFIRE RADAR
SAAB MICROWAVE SYSTEMS
SELEX ES
SELEX ES
ENGINEERING - IDS
COASTAL RADAR NETWORK
Interministerial System for
Maritime Surveillance
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CONCLUSIONS
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• We are facing a lot of difficult challenges
• Procurement must adapt with agility to the evolving scenarios
• Less overhead
• Lean structure to contribute to a Whole of Government
approach
• Better adherence to affordable and sustainable Requirements
• Importance of EU and transatlantic cooperation
CONCLUSIONS
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• In time of scarce resources in presence of complex and
unpredictable threats, the Italian Armed Forces are Transforming
while Operating
• Transformation to enhance operational capabilities and quality of
the military
• The Italian Armed Forces commitment is strong and determined
CONCLUSIONS
Quote of the Day
“The one who adapts his policy to the times prospers, and likewise that, the one whose policy clashes with the demands of the times does not.”
Niccolò Machiavelli 1469-1527
CHIEFS OF STAFF COMMITTEE
MINISTERIAL DECREE APPROVAL AND NATIONAL
ACCOUNTS SYTEM RECORDING
MoU Sign acquisition by Int Agency or Lead Nation
PARLIAMENT (COMMISSIONS)
60 DAYS
New Capabilities
Increase and Upgrading
L. 436/88 (Giacchè)
ROD/JORD
Approved by CoD
Market Analysis
(RFI) by GIP
(SGD lead)
RFQ issuance
Offers Assesment
Contract Signature and National Account System Recording
INTERNATIONAL
~15 mo.
NATIONAL
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ACQUISITION ITER: PARLIAMENTARY CONTROL
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FUNDING
KEY ALLIANCES
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ELETTRONICA
FINMECCANICA 31%
THALES ALENIA
SPACE 33%
(AZIONISTI PRIVATI)
36%
THALES ALENIA SPACE
FINMECCANICA 33%
THALES ALENIA
SPACE 67%
TELESPAZIO
FINMECCANICA 67%
THALES ALENIA
SPACE 33%
FINMECCANICA 25%
SUKHOI 75%
BAE SYSTEMS 33%
EADS 46%
MDBA
FINMECCANICA 25%
BAe SYSTEMS
37,5%
EADS 37,5%
FINMECCANICA 50%
EADS 50%
FINMECCANICA 21%
SUKHOI CIVIL
AIRCRAFT
COMPANY
ATR
EUROFIGHTER
ELECTRONICS SPACE SATELLITES MISSILES AERONAUTICS
KEY ALLIANCES
SCIENTIFIC AND TECHNOLOGICAL MODERNIZATION
INDUSTRY RATIONALISATION AND GLOBALISATION
INDUSTRIAL COMMON POLICY DEVELOPMENT FOR ARMAMENT MATERIAL
POLITICAL SUPPORT FOR THE SUCCESS OF INDUSTRIAL POLICY IN THE FIELD OF DEFENCE
OPERATIONAL REQUIREMENT SATISFACTION
Country
System’
Growth
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ACCURACY IN OPERATIONAL REQUIREMENT
ARMED FORCES USER AND «TEST BED»
EVOLUTION TROUGHOUT PRODUCTION
CONCLUSION