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Norway : Norway's new agency to procure $1.9B defense equipment and services for NAF

Publish Date : 18-Jan-2016

Norway's recently formed defense material agency, called Forsvarsmateriell, which will operate as an arm of the Ministry of Defense (MoD), would procure defense equipment and services for the Norwegian Armed Forces (NAF) worth around $1.9 billion this year.

The government of Norway finally decided to reorganize the management and procurement of materials and services to the NAF in April last year.

Forsvarsmateriell will manage around 25% of Norway's annual defense budget.

The government decision has seen certain procurement and resource management work that were conventionally performed by the Norwegian Defense Logistics Organization (NDLO) getting transferred to Forsvarsmateriell, which started operating in the first week of January 2016.

The NDLO will retain responsibility to provide logistical support functions to the NAF, as part of the reorganization and result.

Norway's defense minister, Ine Eriksen Soreide, said, "The primary mission and raison d'être of Forsvarsmateriell is to support the Armed Forces and the country's defense capability. Ultimately, this is about helping to deliver operational capability, as it is throughout the sector."

The minister added that he reorganization and forming of Forsvarsmateriell, aims to achieve a more effective investment process that can deliver enhanced continuity and a shorter completion time for procurement projects.

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