The NATO Support and Procurement Agency (NSPA) has awarded COMLOG, a joint venture between Raytheon, an RTX business (NYSE: RTX), and MBDA, their first contract under the European Sky Shield Initiative, or ESSI.
With a total value of up to $5.6 billion, the NSPA contract supports a coalition of nations, including Germany, the Netherlands, Romania and Spain, with a combined quantity of up to 1,000 Patriot® GEM-T missiles, if all options are exercised.
This contract demonstrates that NSPA, as a primary enabler of the Alliance, can successfully deliver effective and cost-efficient multinational solutions to nations, while reinforcing European industrial capacities. Through close Euro-Atlantic cooperation between allies and industry, NSPA has enabled the consolidation of requirements through the award of this complex contract. Customer nations have achieved economies of scale, reduced their logistics footprint, and are obtaining capable solutions and support under a proven turnkey legal framework.
Stacy A. Cummings, General Manager NSPA
The contract includes qualification of updated components, addition of new suppliers, test equipment, and spares to support future sustainment. To support delivery, COMLOG will expand the production capacity of GEM-T missiles in Europe.
The contract strengthens industrial and military capabilities in Europe. The order volume will enable MBDA to set up a production facility for Patriot missiles in Germany, as well as major subcomponent production. The COMLOG facility is currently the only one of its kind for the Patriot missile outside the U.S. Overall, the contract supports European Patriot user states, creates workplaces in Germany, and strengthens the supply chain for ammunition.
Thomas Gottschild, Managing Director MBDA Deutschland
GEM-T, the Patriot Advanced Capability 2 (PAC-2) missile interceptor enhanced for defeating tactical ballistic missiles, is a primary effector for the combat-proven Patriot air and missile defense system. The world’s battle-proven air and missile defense system, Patriot is relied upon by eight European nations, and Ukraine, for defense against cruise missiles, ballistic missiles, and enemy drones and aircraft.
Raytheon and MBDA have partnered with NSPA, the United States Army and a broad network of suppliers across the region to offer our European partners a GEM-T program which increases NATO’s air defense missile inventory, strengthens NATO deterrence, and sustains the operational readiness of Patriot air defense systems across Europe. This bundled procurement strengthens cooperation among European Patriot allies.
Thomas Laliberty, President, Raytheon Land & Air Defense Systems
Through this contract, Patriot user nations will realize significant benefits. The bundled procurement, in the spirit of the ESSI, offers economies of scale and supports the expansion of production capacity for new Patriot GEM-T missiles to meet increasing demand. The new production capacity for Patriot GEM-T missiles in Europe enhances security of supply and will contribute to the replenishment of Patriot air defense missile inventories. Finally, the initiative strengthens cooperation among NATO allies in alignment with the ESSI.
Source: RTX news release
