Defence Minister receives mandate from SVK Government to negotiate G2G contract on delivery of 17 new 3D radar systems with Israeli Government

Today the SVK Government has agreed with the MOD's proposal to procure 17 3D radar systems from Israel under a Government-to-Government (G2G) Agreement. This is the most advantageous complex offer for the purchase price of €148.2m, VAT included, which fully and completely meets the technical and operational requirements of the SVK Armed Forces. The new equipment is to replace 24 radars, of which all, except for one, have reached the end of their service life.

Appreciating the Government's responsible decision, Defence Minister Jaroslav Naď said: “Since 2010 Slovakia has kept trying to procure advanced, functional and reliable radar systems, but to no avail for different reasons. Therefore, it pleases me so much that this Government has succeeded in doing so. Safeguarding our airspace is a key factor in delivering on our priority to ensure the security of our country and citizens.”

Alongside the Israeli offer, the Ministry of Defence submitted to the SVK Government the offer of the United Kingdom for €193.4m, VAT included, and the offer of France for €249.9m, VAT included. However, the two countries exceeded the total estimated purchase price set at €155mil. The lowest price and fully compliant radar parameters pointed in favour of the Israeli bid, and so did an analysis of the NATO Communications and Information (NCI) Agency, which found the Israeli bid to be the most advantageous solution when it comes to integrating systems in the NATO environment. Needless to add, the same airspace surveillance systems have been procured by the Czech Republic and Hungary.

On the advantages of the winning bid, Defence Minister Jaroslav Naď said that this means getting cutting-edge technology for a lower price than the one Israel offered in the previous tender in 2019. The Israeli offer is €5m lower than the previous one and delivers a saving of €35m on life cycle costs. In addition, the winning bid guarantees reinvesting 35% of the contract price, approx. €50m, in Slovakia. “The money will be used to support domestic economy and employment. Israel has also satisfied the condition for a declaration of commitment to involving the SVK defence industry in this procurement project, whereas we will insist that a state-run company operating in the SVK defence industry must be the industrial project partner in Slovakia,” he said.

Yet another important factor strengthening the legitimacy of the SVK Government's decision is the transparency of the whole tender. Most importantly, not a single change to the competition conditions was made throughout the tender process. In this, one of the principles was to maintain open communications with all parties involved – if one party submitted a question, the answer to it was forwarded to all concerned parties simultaneously. Additionally, all parties could consult with us any time and had the opportunity to submit partial offers.

On the evaluation process, the head of the MOD emphasised that individual bids were evaluated by a 42-member MOD Tender Evaluation Panel (TEP). Needless to note that neither interest groups, nor politicians or he himself intervened in the selection process.

By procuring 17 pieces of 3D mobile medium, short and very short range radars, the MOD will ensure round-the-clock surveillance, air traffic control (ATC), and a continuous air situational picture (ASP) over Slovakia within the NATO Integrated Air and Missile Defence System (NATINAMDS). Equally important, this will significantly strengthen the security of the Schengen border. After today's decision of the SVK Government, the MOD will enter into negotiations with representatives of the Israeli Government to negotiate all terms & conditions and coordinate the steps ahead. If all conditions are met and a deal is agreed, the Minister has been given the mandate to sign the G2G contract. If no agreement is reached by 31 March 2021, the Ministry of Defence will enter into negotiations with the UK Government and, subsequently, with the French Government.