NATO Framework Agreement Signed
DroneShield awarded first procurement framework agreement for C-UAS in NATO history
3 year procurement framework agreement with extension options
The procurement framework agreement comes as drones continue to headline in armed conflicts globally
DroneShield Ltd (ASX:DRO) (“DroneShield” or “the Company”) is pleased to announce that the NATO Support and Procurement Agency (NSPA) has approved the first Counter-small UAS (C-UAS) procurement framework agreement in NATO history.
The NSPA procurement framework agreement has been awarded via COBBS BELUX BV, DroneShield’s in-country Belgium and Luxembourg partner. The initial agreement is for 3 years, with extension options.
The NSPA procurement framework agreement is considered significant, in that the total order of magnitude of sales under the NSPA framework over the initial 3 years is expected to be significant. Also, as a result of being on the NSPA framework, additional end-users are likely to place orders with DroneShield. European NATO awards are expected to initially account for the bulk of the contracts. The exact order amounts cannot be estimated at this time, and DroneShield will provide further updates to the market as appropriate.
Image: DroneShield DroneGun Mk4 drone defeat system
NSPA is NATO’s lead organisation for multinational acquisition, support, and sustainment in all domains. The organisation’s objective is to obtain the best service or equipment for the customer, at the best value for money, by consolidating requirements from multiple nations in an efficient way through its turnkey multinational acquisition framework - Support Partnerships, which brings together member countries to aggregate their demand and allocate production capacity according to their priorities.
The NSPA procurement framework agreement is awarded as drones continue to prominently headline in armed conflicts globally, including most recently the Iranian attack on Israel, and also ongoing across Ukraine, and other locations.
Oleg Vornik, DroneShield CEO, commented: “The importance of being awarded this first framework agreement, which is a distinctive feature of NSPA, is one of the most strategically noteworthy agreements since the Company was founded. DroneShield is well positioned for the potential order volume with the new production facilities and production ramp-up announced earlier this year. Additionally, this contract provides further validation to the distributor model, where DroneShield has undertaken a significant investment over the last 10 years to grow its network of highly competent in-country partners in over 70 countries globally. This enables the Company to leverage off local expertise and relationships in each of these individual country markets.”