New Forms of Cooperation between the German Armed Forces and Industry

3rd Cologne Defence Roundtable highlights secured Build-Operate-Transfer models from different perspectives

Despite low funds, the German Armed Forces are constantly expected to enforce Germany’s political goals in an ever-increasing number of foreign assignments and with the appropriate de-ployment equipment and an adequate number of trained troops. New types of procurement models can support this. How this is already being successfully implemented in Afghanistan, for example, and how this can serve as an example for other assignments, was explained at the 3rd Cologne Defence Roundtable of Oppenhoff & Partner on 14 July in Cologne. To an audience of about 60 participants from industry and the German Armed Forces, the speakers explained how the interests of the partners involved could be reconciled.

New forms of cooperation serve the soldiers
In his welcoming speech, Michael Abels, Oppenhoff partner and head of the aerospace and defence group, portrayed the subject matter of the Roundtable in the context of the current discussion on the supply of combat equipment abroad. Abels urged participants to approach the discussion objectively. He emphasized that the German Armed Forces must remain capable of supporting the alliance partners also and specifically after the upcoming reform, irrespective of how the reform is implemented in detail. Thus, it is thus clear that a broad level of deployment will also be necessary in future, for example through large armoured units. Ultimately, according to Abels, all efforts to find new forms of cooperation serve the purpose of optimally equipping and training soldiers in the field.

Civil service staff clearly drawn
Detlef Bartel, Head of the Business Division Service at Krauss-Maffei Wegmann (KMW), explained how the enterprise had for some time now already been successfully supporting the German Armed Forces as well as other alliance partners in Afghanistan inter alia in the area of Integrated Logistic Support (ILS). This makes it possible for the German Armed Forces to keep mis-sion equipment operational on location without having to set up their own (complete) ILS structure in the deployment territory. KMW employees maintain service bases with their own personnel, own protected accommodation containers and industrial tool kits in the deployment territory in Afghanistan. Although the personnel of the industry does not participate in missions of the German Armed Forces, for the borderline between soldiers, that is to say fighters, and civil service staff is very clearly drawn, within the scope of their own sphere of duties employees are extremely flexible in order to provide the best possible on-site support to the German Armed Forces in the field.

EU Defence package brings new rules
Partner Dr. Marc Hilber and Holger Hofmann, both lawyers at Oppenhoff & Partner, explained alternative legal models for services and for the operation of combat equipment beyond that of the conventional procurement approaches. With Integrated Logistic Support, the equipment itself can also be operated by the industry, which means that the German Armed Forces need not buy this equipment, but can use it on a fee-basis for the required assignment period. The services are contractually defined directly via the hours of use, which shall be guaranteed by the industry on its own responsibility. Build-operate-transfer models, they concluded, can make costs more flexible and equipment available faster. Important factors to be borne in mind are the security measures when choosing the service provider as well as a precise specification of the services to be rendered. Provisions must also be agreed on the interlinking with the structure of the German Armed Forces. These aspects must already be taken into consideration in the request for bids. According to the EU Defence Package, which must be transposed into German law by 21 August 2011, bids for defence technology services must be requested on a pan-European level in future.

Core capabilities as fall-back position
Finally, the Army Logistic Troops General Brigadier Walter Ohm explained the logistical mission support from the German Armed Forces’ perspective. According to Ohm, today’s mission challenges are, for example, unusual deployment areas, harsh environmental conditions and an untypical use of equipment as well as scarce resources and the greater complexity of technology which additionally can often only be procured in small numbers. Ohm said that future cooperations with industry will also be necessary in future if these challenges are to be mastered: "It’s a similar case with any large army". The Brigadier General presented plans for a technical training centre in which soldiers are to be trained prior to foreign missions specifically in the operation and repair of the technology and also by industrial experts. He emphasized that, due to the limited possibilities of deploying industrial experts, the German Armed Forces always had to be in a position to conduct the service work itself as well. "Core capabilities must be retained as a military fall-back position."

Oppenhoff & Partner stands for more than 100 years of legal counselling on highest level. The law firm advises national and international companies and entrepreneurs on matters of commercial and tax law. The lawyers specialized on the defence sector have been involved in various significant national and international projects. They develop practical structure for the industrial cooperation and not only advise on legal aspects but also on strategies in tender processes and negotiations. Oppenhoff & Partner ist a member of German Association for Defence Technology
(Deutschen Gesellschaft für Wehrtechnik) and of The Association of the German Army (Förderkreis Heer).