The "Politics and Defence & Security Engineering" working group analyses current political developments in the defence sector. It provides facts and interpretation from the technological knowledge and experience of engineers.
The working group has the following comments and questions on the Minister of Defence's progress report on sourcing policy dated 10 August 2017. These have been prepared based on publicly available documents and defence technology knowledge and experience. The comments and questions concern exclusively technological or related aspects.
In particular, the progress report describes the adaptations of the sourcing policy to the "Adaptive Armed Forces", with the minister indicating that the envisaged forms of cooperation with third parties go further than before. The principles of the adaptive armed forces lead to cooperation with externals (increasingly) becoming the norm. In other words, external capabilities will also directly contribute to delivering operational capability.
Dependence on third parties
In sourcing that goes beyond the acquisition of an existing service or provision of real estate, a mutual dependence arises between Defence and a third party. Especially when sourcing specifically military capabilities that directly contribute to the provision of operational capability, as is currently being proposed. Among other things, such a dependency may arise if a sourcing party has to develop knowledge or technology specifically for Defence, or actually hands over own already available knowledge, technology or personnel to Defence as part of the cooperation. It is then important to look for parallel interests rather than conflicts of interest.
Upon termination of the cooperation in the future, it may be necessary for Defence, together with the sourcing partner, to find a suitable reallocation of the relevant (military) capacity.
Also, upon termination, there may be a responsibility on the part of Defence to allow the sourcing partner to once again dispose of any knowledge, technology and personnel (surrendered to Defence within the framework of the cooperation).
As a result, it becomes necessary for Defence to bind itself to the third party, more than was previously customary, and thereby bear an additional responsibility towards it.
Adaptation of defence procedures, such as tendering, will also be necessary to accommodate this more far-reaching form of sourcing.
International cooperation
Cooperation in a European context is of growing importance and, partly due to efforts by the European Commission, is becoming increasingly concrete. A growing number of practical examples such as the EATC and the MRTT paint a picture of possibilities for future cooperation. Policy-wise, mutual alignment, harmonisation and synchronisation of plans is becoming increasingly important.
However, the sourcing policy as laid down in the letter of 10 August is specific to the Dutch situation. Cooperation may become (even) more difficult if the Netherlands sources resources while partner countries own them. It is therefore important that the minister also includes international aspects of sourcing in the policy.
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The Hague, 4 September 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 (Is sourcing collaborative or tug-of-war....?)
