The Politics and DV Engineering working group analyses current political developments in the defence sector. It provides independent facts and interpretation from the technological knowledge and experience of engineers.
The working group has the observations below on the Adaptive Force Report of 26 October 2017. These have been prepared based on publicly available documents and defence technology knowledge and experience. The observations and questions based on them concern technological or related aspects only.
In the letter, the minister reports on the progress of introducing the Total Force Concept announced on 13 January 2017 under the title 'The Adaptive Force'. Through this concept, the flexibility of the armed forces will be increased and sustainable cooperation with other actors in society. See also parliamentary paper 34550-X-73 dated 13 Jan 2017.
The 'adaptive armed forces' concept is an important one that has potentially major implications for the way the organisation works. However, there are also risks associated with it.
The Adaptive Force concept and equipment (page 1 and page 5)
Among the principles cited on page 1 from the 13 January letter, the first three are also highly relevant to equipment and technology. Mentioned are: 'availability prevails over ownership', 'scalability of capabilities' and 'economic added value for the Netherlands through better anchoring of the armed forces in society'. However, the reporting in this letter deals almost exclusively with personnel aspects of the concept.
In addition, a policy instrument like 'the adaptive armed forces' for equipment and technology is only really effective when applied to large(er) projects.
Decentralised implementation (pg. 2)
According to the report, change must be decentralised and come about through trial and error. As the D-DMO said upon taking office, "trying is allowed". At the central level, Defence creates administrative frameworks. The working group highly welcomes an appropriate degree of decentralisation and flexibilisation! However, practice is recalcitrant, especially when it comes to equipment and technology. Standing equipment policies such as procurement regulations, DMP procedures and "buying off the shelf if possible" often resist the proposed flexibility. It is indicated that incentives are needed "to let go of the familiar", but these are not specified.
Dialogue and cooperation on smart contracting (page 7)
The working group welcomes the plan of smart contracting. Intensive cooperation internally Defence and dialogue with market players can significantly improve the procurement process. However, additional (technical) knowledge is needed in various departments and units to conduct that dialogue effectively.
In the past, there have been instances of companies participating in a dialogue in preparation for a procurement procedure being excluded from participation due to inside information. The introduction of new forms of dialogue entails a risk for companies that this will happen again.
Price consequences of functional specifications in 'smart contracting' (p. 7)
One of the objectives (or consequences) of a shift from technical specifications to functional specifications in 'smart contracting' is that a greater risk for the delivery will lie with the supplier. Suppliers will, where appropriate, incorporate this additional risk in their pricing. Risk premiums of 10-20% should be taken into account. This is particularly relevant for those parts for which Defence has hitherto operated at detailed technical specifications, such as in naval ship construction.
Safety
Unfortunately, the aspect of safety and related responsibilities has recently been highlighted. The changes envisaged in the 'adaptive armed forces' concept are realised through a different way of dealing with personnel and materiel. More flexibility through (co-)use of external personnel, external services and equipment, among other things. This has implications for the approach, monitoring and standard-setting in security.
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The Hague, 9 November 2017
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Disclaimer: The facts and opinions given are based on open sources and on the knowledge and experience of working group members.
This is not an official position of KIVI. The association accepts no liability for anything put forward by the working group or its members.
Photo: Ministry of Defence
