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PARTICIPATION OF THE DOMESTIC DEFENSE INDUSTRY

IN THE EQUIPMENT PROGRAM FOR FRIGENTS OF THE H.N.

We are following with great interest the efforts made by our Country and the Ministry of National Defense, over the last two (2) years, to upgrade its Defense Force, with the implementation of very important armament programs for our Armed Forces. 

 Among these, the program to upgrade our Air Force's F-16 aircraft and the program to procure RAFALE aircraft, the implementation of which has already begun, with the most recent being the program to procure new Frigates and modernize the MEKOs of our Navy (NH), with a budget of 5 billion euros, with an 8-year implementation horizon, which is at the stage of expression of interest and submission of tenders.

It is evident that the full operational availability of the new Frigates depends both on their smooth operation as a vessel and on the uninterrupted operation of their highly reliable electronic and weapon systems, which must include, among others, multiple-target long-range RADAR detection and locking systems, an Integrated Communications System, Self-Protection Systems, Sonar Systems, Long-range Missile Launchers, Close Support Weapon Systems, and Battle Management Systems.

Upon assuming its duties, the Leadership of the Ministry of National Defense had expressed to the Council of Defense the political will for the substantial participation of the domestic defense industry in weapons systems programs, within the framework of the Security of Supply and Information of the weapons systems of our Armed Forces. A recent important act in this context is the re-establishment and staffing of the Defense Research, Technology and Industry Council (DRTIC), which, although established in 2001 with Law 2019/2001, was established and convened for the first time recently, after the passage of Law 4609/2019.

The objectives of this specific approach are obvious and commendable, such as meeting operational needs, strengthening the industrial infrastructure supporting the Armed Forces and rebuilding the domestic defense industry, ensuring multiple benefits both for National Defense and, in terms of development, for the country's Economy and Employment.

Regarding the institutional framework, the implementation of the Frigates program is expected to take place through Interstate Agreements, contracts with International Organizations, International tenders or even by invoking Article 346 of the Treaty on the Functioning of the European Union for reasons of protecting essential security interests of the Country. It is important to point out the following:

• In the National Budget and the Medium-Term Fiscal Strategy Framework, to cover the needs of the ED, the following are mentioned, among others, as national positions:

"The increase in the participation of the Domestic Defense Industry in the procurement of the Greek Armed Forces, always in accordance with Community law, a fact that will have beneficial effects on the national economy as it reduces imports, increases domestic employment, creates added value and contributes to both the transfer and diffusion of Technology and Know-how..."

• The Law on Defense Procurement, which is in full harmony with Community Directive 81/2009, provides, as a unique possibility, for supporting the Domestic Defense Industry through the National Defense Strategy and mentions, among other things, the following:

"For reasons of protecting the essential interests of the Country and in particular for the security of supply of the Armed Forces as well as for meeting needs in times of crisis, the Ministry of National Defense takes all necessary measures for the establishment and maintenance of a domestic Technological Industrial Base..."

• Directive 81/2009/EC provides for a procedure for the evaluation of participants, allowing for greater flexibility, specific rules on the security of confidential information, clauses on security of supply and specific rules on subcontracting. This means that Member States may impose specific requirements on contracts in the defence and security sector under the above Directive if this is necessary to protect their essential security-related interests, after having provided sufficient justification.

Therefore, a golden opportunity is presented with the declared political will of the Ministry of National Defense to finally utilize the available institutional framework positively for the country, with the implementation of this important program of the Ministry of National Defense and with the appropriate preparation of the Greek side, to substantially upgrade the subject of Industrial Cooperation. 

Therefore, the participation of Greek Defense Industry (EABI) in this important armament program of the Hellenic Navy, both for its survival and for the maintenance and development, in the medium term, of the existing Domestic Production & Technological Base. 

To achieve this goal, it is considered necessary and very important to be ensured by the Ministry of National Defense, through specific requirements, from the initial stage of the procurement process and the program implementation contract, the cooperation and expanded participation of EABI according the National Defense Industrial Strategy, not only in undertaking shipbuilding and construction work, but also in the co-production of the main technological systems of the Frigates and in ensuring their support in the Country for their entire lifespan, ensuring for our Navy among others:

-                  Reduced life cycle cost of Frigate systems.

-         Increased Security of Supply

-                  Increased operational autonomy in times of crisis.

These significant benefits can only be achieved if the Domestic Defense Industry, through co-production partnerships, is involved from the start of the implementation of the Frigate program.

To determine the Industrial Object, it is necessary to incorporate a Special Term into the Program Implementation Contract, requiring the submission by the Main Supplier. "Integrated Security of Supply Proposal", with which we request and ensure from the prospective supplier, at a minimum, the following:

• The determination of the critical Technological and Operational Systems, repairable and quorums of the Frigates, with the preparation of a Technical-Economic Study, in collaboration with the Hellenic Defence Ministry - General Directorate of Defense Industry - Defense Industry Bodies of the Country, taking into account all the RAM&T (Reliability, Availability, Maintainability & Testability) and MTBF elements, necessary for their uninterrupted operation, for which it will be deemed economically advantageous and operationally imperative to acquire - develop a repair capability in the Country, for support - maintenance of the systems for their entire lifespan.

• The definition of the country's Defense Industry Companies and systems, which will be assigned to each of them, specialized in the respective Technological sectors that will be involved, both in the production of the systems and in the acquisition and development of the infrastructure for their Continuous Support in the Country for their entire lifespan, as well as the corresponding cooperation agreements and the commitment to provide the relevant licenses, for the domestic production and maintenance of the Systems for their entire lifespan.

• The provision of the necessary technical Documentation - Bibliography and special tools for these systems, in accordance with the guidelines of the National Defense Industrial Strategy (NDIS), which will give us full support to the country.

• The commitment, on behalf of the Frigates' manufacturing company, that there will be NO REFUSAL on its behalf as well as all the manufacturers (OEM's) of all the individual systems of the Frigates, to provide any relevant information and materials  (common parts), especially the critical ones, are required by the National Defense Industry - General Directorate of Defense Industries - National Defense Industry of the Country, for the Continuous Support of the systems, for their entire lifespan.

Achieving a minimum of 30% domestic industrial participation - support in the value of the Frigates' armament program is absolutely necessary. so as to ensure, to the minimum extent possible, the construction and domestic maintenance of all Critical Subsystems within the required time.

The above measures are fully in accordance with Community and national legislation and legal framework (Directive 2009/81/EC, L. 3978/2011) which I mentioned above and which ensure the security of supply and the operational autonomy of the Navy, throughout the life of the Frigates.

It is certain that ensuring the conditions I described and utilizing them according to meritocratic criteria by the entire Domestic Defense Industry, both state and private, in accordance with the National Defense Industrial Strategy (NDIS), not only in undertaking shipbuilding and construction work, but also in the co-production of the main technological systems of the Frigates as well as in ensuring their support in the Country for their entire lifespan, will enable multiple national objectives in the fields of Defense and Economy to be served simultaneously. 

I want to believe that MISTAKES OF THE PAST WILL NOT BE REPEATED and With the care of the Ministry of National Defense, this requirement WILL be included in the Frigate Program Implementation Agreement., leveraging BUYER POWER ( BuyingPower ), which is given to us by the expression of interest of eight (8) candidate Frigate manufacturers, according to a statement by the Minister of National Defense at an AHEPA event on March 17, with what this implies for the Defense Force, the Economy of our Country and the Operational Autonomy of our Armed Forces.

Lieutenant Commander (Engineer) ret. Theodoros Giannitsopoulos

Honorary Director of the 3rd Branch of the General Administration of Greece

Member of the Hellenic Aviation Academy (HAA)

Member of the Ikaros School Alumni Association (SASI)

Member of the Scientific Society of Aeronautical Engineers (ESMA)

Member of the Hellenic Institute for Strategic Studies (ELISME)

Member of the Society of Logistics Engineers (SOLE)