2017
Industrial participation safeguards military security of supply
Arrangements for industrial participation (formerly known as ‘offset’) can be used in defence equipment procurements that are essential to the defence and security of the state. Military security of supply and the availability of critical technologies in all conditions can be secured through close and long-standing cooperation among the domestic and foreign defence industries.
Industrial participation can be either direct or indirect. It must focus on the capability and technology areas that are critical to Finland’s defence as defined by the Government Resolution on Securing the Finnish Defence Technological and Industrial Base, published in the spring of 2016. According to the present rules, industrial participation can only focus on the defence and security sector; it is not possible to include unrelated civil products and services in these arrangements.
The need for and scope of industrial participation is always assessed on a case-by-case basis, and the justifications must meet the conditions for securing the essential security interests of the state, as per Article 346 TFEU. The Ministry of Defence will take a separate decision on industrial participation, and notification of the obligation must be made, at the latest, when the Request for Quotation is submitted.
The agreement on industrial participation will be signed between the Ministry of Defence and the selected supplier (contractor). The Ministry of Economic Affairs and Employment is responsible for managing and implementing the agreements.
Industrial_participation_in_defence_procurements_PLM_2017_verkkojulkaisu (pdf) (362.3 KB)