Denmark launches 1.6 billion euro modular facilities tender

The Danish Armed Forces is launching another multi-billion-kroner tender for facilities.

The Danish Defence Estates and Infrastructure Organisation (ETK) is issuing a framework agreement for the supply and installation of modular units intended to serve as temporary barracks capacity, including accommodation for conscripts, according to the tender documents.

- A new security policy environment has significantly altered the threat landscape in Europe and created an increased need for rapid military build-up. It has therefore been politically decided that the capacity of the Danish Armed Forces must be substantially strengthened in the coming years, the documents state.

The framework agreement has an estimated value of DKK 8 billion but could rise to as much as DKK 12 billion (approximately EUR 1.6 billion).

Initially, the agreement will run for a period of four years. It is divided into two lots: one covering the leasing of modular units with an option for subsequent purchase, and the other covering direct purchase and installation.

The tender covers a wide range of modular unit types, including accommodation, offices, training facilities, canteens, and welfare facilities.

- ETK’s requirement primarily concerns temporary building capacity to address the immediate need, which will later be replaced by permanent facilities. The exact number of required units is currently unknown. It is expected that the modular units will be installed at existing military installations, including barracks, air bases, and naval bases, ETK writes.

The tender follows significant controversy (text in Danish) shortly before Christmas, when ETK, in a separate procurement, reduced the planned use of modular units for barracks and instead selected a concrete-based project under a public-private partnership model.

The units are to be deployed at Defence sites, including barracks, air bases, and naval bases, but may also be used at new locations.

Deliveries must be possible across the entire Kingdom of Denmark, including Denmark, the Faroe Islands, and Greenland. Specific contracts will be awarded through mini-competitions among up to five prequalified suppliers per lot.