Depth and diversity of a competitive EDTIB: SMEs in defence The European Defence Agency Pieter Taal Assistant Director, Industry & Market Directorate Berlin | 22 October 2009

© European Defence Agency Development of defence capabilities in the field of crisis management Strengthening DTIB for the creation of an internationally competitive European Defence Equipment Market Enhancement of effectiveness of European Defence Research and Technology (R & T) Promotion & enhancement of European armaments cooperation Mission and Functions “… to support the Council and the Member States in their effort to improve the EU’s defence capabilities in the field of crisis management and to sustain the ESDP as it stands now and develops in the future.”

© European Defence Agency EDA Organisation

© European Defence Agency EDA’s integrated Strategies CAPABILITY DEVELOPMENT PLAN (CDP) Identification of priorities for capability improvement & opportunities to pool/cooperate EUROPEAN DEFENCE R&T STRATEGY (EDRT) Identification of key defence technologies to be preserved or developed and step change in R&T collaboration EUROPEAN DEFENCE TECHNOLOGICAL AND INDUSTRIAL BASE STRATEGY (EDTIB) Identification of key industrial capacities to be preserved or developed (or otherwise to source from wider world market) EUROPEAN ARMAMENTS STRATEGY New formulas for achieving more and more effective collaboration

© European Defence Agency I&M Strategy Creation & development of an international transparent and competitive European Defence Equipment Market (EDEM) Supporting the restructuring and strenghthening the European Defence Technological and Industrial Base (EDTIB) In close coordination with Member States, EU Commission, LoI/Framework Agreement, Industry and Academia Strong and competitive EDEM and EDTIB fundamental underpinning of ESDP Creation & development of an international transparent and competitive European Defence Equipment Market (EDEM) Supporting the restructuring and strenghthening the European Defence Technological and Industrial Base (EDTIB) Creation & development of an international transparent and competitive European Defence Equipment Market (EDEM) Creation & development of an international transparent and competitive European Defence Equipment Market (EDEM) Supporting the restructuring and strenghthening the European Defence Technological and Industrial Base (EDTIB) Creation & development of an international transparent and competitive European Defence Equipment Market (EDEM) Creation & development of an international transparent and competitive European Defence Equipment Market (EDEM) Supporting the restructuring and strenghthening of the European Defence Technological and Industrial Base (EDTIB) Creation & development of an international transparent and competitive European Defence Equipment Market (EDEM)

© European Defence Agency Intergovernmental Regime on Defence Procurement GovernmentsIndustry > 1M€ Art. 296 TEC Code of Conduct Exclusions & Exceptions  Fair competition in Supply Chain  Prime responsible for the selection  Promotes opportunities where it is efficient, technically and financially appropriate No threshold Code of Best Practice in the Supply Chain  A vonluntary non-binding approach  Fair and equal treatment of suppliers  Mutual transparency and accountability  Mutual support  Mutual benefit Single portal: Electronic Bulletin Board EBB1 > G2I EBB 2 > I2I Increase transparency and competition in the EDEM

© European Defence Agency Deliverables in the EDTIB area Identify what kind of EDTIB we want and how we should get there? Characteristics of the future EDTIB 1.Capability Driven 2.Competent 3.Competitive Key actions for Governments:  Clarifying priorities  Consolidating demand  Increasing investments  Ensuring Security of Supply  Increasing competition and cooperation Roadmaps  Key Industrial Capabilities  Security of Supply  Increase competition  Depth and diversity

© European Defence Agency  EDTIB Strategy “the future success of the EDTIB in Europe will depend upon effective utilisation of potential and innovation wherever these are to be found in Europe – in SMEs, and in suppliers not always associated with defence, and in new Member States”  EDTIB Depth and Diversity Roadmap EDA to develop in close dialogue with pMS and industry support measures aimed at making SMEs prosper further in a European scale market Depth and diversity of the European suppliers’ base

© European Defence Agency SB agreed on developing a number of measures aimed at supporting increased involvement of SMEs and non-traditional suppliers in the EDTIB:  Enhancement of the CoC and CoBPSC by: deciding on a new publication threshold for the EBB, in support of SMEs, at the next SB taking into account the final version of the new Directive on defence procurement; sMS informing during the tendering process on Governments’ subscription to the CoBPSC; NAD SB 15 October 08

© European Defence Agency NAD SB 15 October 08  Developing contracting policies to enhance SMEs opportunities to win contracts in R&D/R&T projects and programmes  questionnaire to pMS to identify national practices;  study on R&D/R&T contracting policies in support of SMEs;  Developing Guidelines for simplification and harmonisation of procurement and contracting processes for lower value contracts, addressing: – lower national contract advertising thresholds; – standardised qualification criteria for certification of suppliers; – harmonisation of tendering time limits; – difficulties resulting from contracting in different languages; – protection of SME owned IPR.

© European Defence Agency  Agreed by SB NAD on 9 October 09  Set of recommendations for pMS authorities  Applies to national procedures Guidelines for facilitating SMEs’ access to the defence market “Chapters”: Access to information Procurement - general issues - language - certification - lower value contracts Intellectual Property Rights R&T- related policies

© European Defence Agency  Explore the scope for standardising the criteria for certification of suppliers (article 46 of the new defence procurement directive)  Implement support measures for clustering and partnering of companies around EDA projects and programmes: Launching ‘biz-to-biz’ events to support cross-border consortia building and raise awareness of business opportunities, especially related to EDA JIPs; Developing an armaments cooperation driven IT platform to enable Industry to propose solutions to pMS priorities set out in the CDP or from other priorities/EDA initiatives, and to find partnering companies; Way ahead

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