Procurement System Major Procurement Programs

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Procurement System Major Procurement Programs 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 .
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