ComDef 2013
Italian Ministry of Defense procurement system Major procurement programs
Maj.Gen. Giovanni FANTUZZI Washington DC, 04th September 2013 SECURITY
THE BRIEFING IS UNCLASSIFIED
AGENDA
• Overview
• Defense Organisation - SGD/DNA
• Defense Acquisition Programs process
• Major Programs
• Conclusions
3/37 SCENARIO
SAFETY Economic / financial crisis
Globalization Unpredictability of threats
Removal of sovereignty Multiple generators of instability
GLOBAL SAFETY
MODERN AND TIME CONSTRAIN FOR DEPLOYABLE SYSTEMS INSTRUMENT MODERNIZATION 4/37 ARMAMENTS POLICY
GOVERNMENT CABINET DIRECTIVE: MILITARY POLICY FOR THE YEAR 2013
5/37 MAIN PLAYERS
Minister of Armed Forces Defense Staff Defense Staffs
Policy and requirements
Product &Tecnology Ministry of Economy and Finance
National Industry Ministry of Economic Development University and Ministry of Foreign Reserach Centers Affairs Countries, Agencies and International Org. Analysis and Assesment Procurement Technical Industrial Sector Directorates 6/37 DEFENSE ORGANISATION
MINISTER
STAFF OFFICE UNDERSECRETARIES
2 CENTRAL OFFICES
CHOD SGD/NAD ONLY TECHNICAL-OPERATIONAL
Chief AIR Chief SEA
5 D.T. 4 D.G.
Chief LAND Chief CC TECHNICAL-OPERATIONAL AREA TECHNICAL-ADMINISTRATIVE AREA
7/37 GENERAL SECRETARIAT FOR DEFENSE/DNA
SECRETARY GENERAL OF DEFENCE AND NATIONAL ARMAMENTS DIRECTOR
Deputy SG Deputy SG/DNA
I DEPARTMENT II DEPARTMENT III DEPARTMENT IV DEPARTMENT V DEPARTMENT PERSONNEL ADMINISTRATION INDUSTRIAL POLICY AND MAJOR ACQUISITION TECHNOLOGICAL INTERNAT. RELATIONS PROGRAMS INNOVATION
PERSOMIL PERSOCIV PREVIMIL TELEDIFE TERRARM NAVARM ARMAEREO
COMMISERVIZI GENIODIFE 8/37 PROCUREMENT: MAJOR HIGHLIGHTS
Market research in the international arena
Domestic industry involvement in Operational international programs Requirements Search for economies of scale
Economic returns in the case of exports (Royalty) Acquistion Program Back with technological impact on employment
Raising the professional level of Growth personnel (government and industry) Country’s System Addressing industry to seek efficiency and international competitiveness
Involvement in complex programs also for small and medium-sized enterprises (SMEs). 9/37
PROCUREMENT: ORGANISATIONAL STRUCTURES
PRAGMATISM, FLEXIBILITY, INTERDISCIPLINARY
PROCUREMENT DYNAMIC, TIMELY, EFFICIENT
Area Procurement
Area Joint Industry Staff
GIP DzP 10/37 GENESIS OF A PROGRAM
ROP
Approval Operational Requirements and Priorities First technical solutions feasibility
Operational Requirements
COVIRO
CHOD Approval
Procurement COVIRO: Joint Evaluation Committee of Operational Requirements 11/37 ACQUISITION ITER
DEFENCE GENERAL PLAN (PG-001)
APPROV GIP E
EO ROP ROD TECH SPEC
Pre-feasibility Feasibility/definition
DT GIP DzP
DEVELOPMENT REQUIREMENT PLANNING RESEARCH $ PRODUCTION SERVICE
SYSTEM LYFE CYCLE (RIF. SMD – L- 001)
12/37 DEFENSE INVESTMENT BUDGET
5 1.4 4 1.7 3 MiSE budget 2 3.5 Defense Budget 2.5 1
Mld € 0 2012 2013 (4,2 mld €) (4,9 mld €)
13/37 TOTAL DEFENSE BUDGET 2008 - 2012
10000 71% 67% 66% 67% 66% 9000 59% 8000
7000 6000
5000
4000 24% 24% 3000 22% 24% 17% 20% 2000 18% 13% 12% 11% 10% 1000 9%
0 2008 2009 2010 2011 2012 2013 Data in M€ Personnell Operation Investiment 14/37 MULTINATIONAL COOPERATION
CNAD
OCCAR LoI EDA European Commission
MULTI / BILATERAL COOPERATION
15/37 DEFENSE INDUSTRY
joint ventures alliances
acquisition
Transnational Dimension Geographical Capital distribution
16/37 DEFENSE INDUSTRY ITALY
National Defense Industry Market
Borders Limited
only the most competitive industries, therefore, will be able to survive
17/37 SMALL-MEDIUM NATIONAL INDUSTRY
TREVISO VICENZA LECCO MILANO BOLOGNA
PERUGIA
ROMA ENTERPRISE LATINA NAPOLI BRINDISI
CREATIVITY
INNOVATION
18/37 DEFENSE vs INDUSTRY
common objectives, even in the presence of different assumptions and purposes
DEFENSE INDUSTRY the best system, timely at the best economic conditions, to ensure the maximum economic return, country's security, and to be able to with access perform the assigned task, in to the internal market and, accordance with international above all to the international one commitments 19/37 PROCUREMENT PROGRAMS Italian Armed Forces Procurement Programmes ≈4.5 Billions €/year
IT-MOD Releasable to SEDENA Land Programmes
NEW ARMOURED VBM “FRECCIA” 8x8 PZH 2000 MLRS VEHICLE “CENTAURO”
THALES IT – CASSIDIAN - KRAUSS OTO MELARA – KRAUSS IVECO - OTO MELARA IVECO - OTO MELARA MAFFEI WEGMANN – THALES FR MAFFEI WEGMANN CONSORTIUM CONSORTIUM
MLTV “LINCE” MLTV - AMBULANCE NEC FORCE FUTURE SOLDIER
ITALIA INDUSTRIES OF MARCONI SELEX COMM. IVECO IVECO - OTO MELARA CONSORTIUM FINMECCANICA GROUP LARIMART – GALILEO AVIONICA BERETTA - SISTEMI COMPOSITI – AEROSEKUR Naval Programmes
FREMM U212A MU-90
ORIZZONTE S.N. FINCANTIERI WASS (ITA) DCNS (FRA) General Submarine Consortium (GER) THALES, DCNS (FRA)
BLACK SHARK VULCANO STRALES
WASS OTO MELARA OTO MELARA Fixed-Wing Aircraft Programmes
EF2000 JSF C-27J
EUROFIGHTER LOCKHEED MARTIN (industrial leader) ALENIA AERONAUTICA EUROJET and ALENIA ERONAUTICA
MPA INTERIM AEJPT M346 ITS
ALENIA AEM AEM Rotary-Wing Aircraft Programmes
NH-90 CH-47F AW101 CSAR
AGUSTAWESTLAND AGUSTAWESTLAND AGUSTAWESTLAND BOEING Missile Programmes
METEOR FSAF MEADS
MBDA/ITA-MABDA/FRA-THALES MBDA ITALIA MBDA ITALIA
NATO ALTBMD & Territorial MD
SELEX SI in 2 Multinational Consortia (SAIC Team & TRS Team) Space Programmes
SICRAL2 ATHENA-FIDUS COSMO - SKYMED
THALES ALENIA SPACE IT THALES ALENIA SPACE THALES ALENIA SPACE IT TELESPAZIO TELESPAZIO TELESPAZIO
HELIOS MUSIS VEGA
ASTRIUM THALES ALENIA SPACE TELESPAZIO THALES ALENIA SPACE E.L.V. (AVIO – ASI) TELESPAZIO S.p.A. RPS Programmes
PREDATOR A & B AGS TACTICAL RPS
15 NATO NATIONS
GENERAL ATOMICS AERONAUTICAL NORTHROP GRUMMAN AAI SHADOW 200 SYSTEMS INC. (industrial leader)
ASIO B – SELEX ES STRIX-C – ALPI AVIATION FALCO – SELEX ES
C4ISTAR Programmes
DEFENCE INFORMATION SOFTWARE DEFINED RADIO INFRASTRUCTURE • NATIONAL SDR • ESSOR (6 UE NATIONS ) • COALWNW (9 NATIONS)
SELEX ES INDUSTRIES/CONSORTIA TO BE SELECTED SICOTE 2 MAJIIC WI MAX + NC3A Air Defence Radar Network
SELEX ES SELEX ES VITROCISET COASTAL RADAR NETWORK Interministerial System for COUNTERFIRE RADAR Maritime Surveillance
SELEX ES SAAB MICROWAVE SYSTEMS ENGINEERING - IDS SELEX ES CONCLUSIONS
30 CONCLUSIONS
• 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
31 CONCLUSIONS
• 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
32 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
ACQUISITION ITER: PARLIAMENTARY CONTROL
New Capabilities Increase and Upgrading L. 436/88 (Giacchè)
~15 mo. MINISTERIAL DECREE APPROVAL AND NATIONAL ACCOUNTS SYTEM RECORDING PARLIAMENT (COMMISSIONS) 60 DAYS
INTERNATIONAL
CHIEFS OF STAFF COMMITTEE MoU Sign NATIONAL acquisition by Int Agency or Lead Nation ROD/JORD Approved by CoD
RFQ issuance Offers Assesment Market Analysis Contract Signature and National Account System (RFI) by GIP Recording (SGD lead)
35/37 FUNDING
36/37 KEY ALLIANCES KEY ALLIANCES
ELECTRONICS SPACE SATELLITES AERONAUTICS MISSILES
THALES ALENIA ELETTRONICA SPACE TELESPAZIO MDBA SUKHOI CIVIL AIRCRAFT COMPANY FINMECCANICA 25%
FINMECCANICA SUKHOI 75% FINMECCANICA 31% 25% FINMECCANICA FINMECCANICA 33% 67% ATR FINMECCANICA 50% THALES BAe ALENIA EADS 50% SYSTEMS SPACE 33% 37,5%
EUROFIGHTER THALES THALES FINMECCANICA (AZIONISTI ALENIA ALENIA 21% SPACE 67% SPACE 33% PRIVATI) BAE SYSTEMS EADS 37,5% 36% 33% EADS 46%
38/37 CONCLUSION
SCIENTIFIC AND TECHNOLOGICAL MODERNIZATION
INDUSTRY RATIONALISATION AND ACCURACY IN GLOBALISATION OPERATIONAL REQUIREMENT
Country INDUSTRIAL COMMON POLICY ARMED System’ DEVELOPMENT FOR ARMAMENT FORCES MATERIAL USER AND Growth «TEST BED» POLITICAL SUPPORT FOR THE SUCCESS OF INDUSTRIAL POLICY EVOLUTION IN THE FIELD OF DEFENCE TROUGHOUT PRODUCTION
OPERATIONAL REQUIREMENT SATISFACTION
39/37