Documents Reveal Criticism of Sweden's Purchase of Patriot Missiles
(Source: Radio Sweden; issued April 01, 2019)
A classified report says the Swedish Defence Material Administration (FMV) lacks resources, clear leadership and a cost analysis into how expensive Patriot will be for Sweden.
The document dated 4 December 2018, has been obtained by Ekot about the anti-aircraft defence system.
It is one of the largest purchases made by Swedish defence, and will cost 12.1 billion kronor initially, but could cost 30-40 billion kronor when updates and maintenance are factored in.
The purchase has been criticised for being expensive when compared to the French / Italian SAMP/T system, and for tying Sweden closely to the USA and Nato.
Risk Management Is Included in All Major Material Projects
(Source: Swedish Defence Matériel Agency, FMV; issued April 01, 2019)
(Unofficial translation by Defense-Aerospace.com)
Sweden's Radio Ekot has in an article described that there are no resources, no clear control and no calculations of how expensive the upcoming Patriot air defense system will be for Sweden. The article refers to an internal report made by FMV.
“Internal audit at FMV, which has prepared the report to FMV's board of directors, identifies a number of risks. It helps us when we are to take measures to meet those risks,” says Mikael Frisell, head of the Army business area at FMV.
There are always risks when it comes to complex procurement projects. At FMV, there is great experience in managing the risks in such projects. For example, in the procurement of the Patriot air defense system, the project has taken measures to manage the risk of exchange rate fluctuations.
“Through the Swedish National Debt Office, we have ensured that we have a fixed dollar rate for the payments that we will make at various stages of the project,” says Mikael Frisell.
Steering groups at the authorities
Major equipment projects need clear control, and when it comes to the Patriot project there are steering groups both at FMV and at the Swedish Armed Forces, which engage in ongoing cooperation. In addition, there is a special system management at FMV and a service-introduction management at the Swedish Armed Forces.
“We have a clear control of goals, time and finances. We have also taken measures so that there will not be any ambiguities between the authorities. Since January 1 of this year, we have a clearer organization than when the audit was conducted, an organization that gives greater clarity in responsibility issues,” says Mikael Frisell.
FMV's task is to procure the air defense system and for that the authority has a budget. Expenses for future maintenance and upgrades of the system during the years in which the system is in use are the responsibility of the Armed Forces.
“FMV has calculated the long-term costs for the system and it is embedded in the authorities' future forecasts. This record has been reported to the government prior to their decision,” says Mikael Frisell.
Complex integration work
The integration of the air defense system with other systems is an important task. The system must work in conjunction with other parts of the national air defense, such as combat management centers and the national radar system.
“It is a difficult and complex job, but it is our mission, and we have allocated funds in the budget for this. FMV will, if necessary, help industry, both in Sweden and the United States, to get all the pieces of the puzzle in place. We may also need to strengthen the competence on the system integration side. It is something that we always monitor, and that is part of the development authority,” says Mikael Frisell.