On 12 October 2018, Minister of Defense Karl Erjavec signed an Intergovernmental Letter of Offer and Acceptance between the Ministry of Defense of the Republic of Slovenia and the US Government for the purchase of 38 lightweight 4 x 4 (LKOV 4 x 4) remote controlled armored systems (Joint Light Tactical Vehicle - JLTV) made by US company Oshkosh.
The value of the contract for the purchase of 38 JLTV vehicles, taking into account administrative costs, tools, spare parts and training, is EUR 15,688,704 excluding VAT. It is planned that in the first quarter of 2019 an addition to this contract will also be signed, including remote-controlled armament systems in the estimated value of EUR 11,336,283 excluding VAT. The total investment is estimated at a maximum of EUR 32 million with included transport and VAT.
The reason for the two-phase signing of the contract for the purchase of vehicles is in the request for the installation of 76 mm smoke grenade launchers that the Slovenian Armed Forces already have in operational use and in the acquisition of an additional offer by a German manufacturer.
The purchase was carried out through the Foreign Military Sales Procedure through the US Government or by the Government's procedure, which is in accordance with Article 10 of the Public Procurement Law in the Field of Defense and Security (ZJNPOV). Such purchases provide complete transparency and purchase without intermediaries, but at the same time equipment can be purchased at more favorable terms.
The vehicles that are the subject of the contract have the same configuration as the vehicles intended for the US Army, which means that we have bought them for the lowest possible price. In practice, this means that we paid approximately 50 percent of the estimated value of the comparable vehicles for 38 vehicles with armaments, as we found in the previous market survey.
With 18 new LKOV 4 x 4 vehicles with armament systems, we will equip the unit for special operations and the other 20 vehicles will go to the medium battalion battle group, which provides national defense and fulfills of NATO's capability goals for the Slovenian Armed Forces.
All vehicles will be equipped with the Kongsberg M153 remote control weapon system and an integrated 7.62 mm machine gun or a 12.7 mm machine gun or an automatic 40 mm caliber grenade launcher, which are already operational in the Slovenian Army.
Lightweight 4x4 vehicles with integrated remote-control systems will be delivered to the Slovenian Army in 2021, 2022 and 2023 in accordance with the signed agreement.
The purchase of 4x4 lightweight wheeled armored vehicles with remote controlled weapons systems is planned in the budget of the Republic of Slovenia for the years 2018 and 2019, which was adopted by the National Assembly of the Republic of Slovenia, before it was discussed and approved by the relevant committees of the National Assembly.