Denmark plans multibillion Saab laser deal without competition

Denmark’s defence procurement agency, DALO, intends to award Swedish Saab a framework agreement for additional laser-based combat training systems without an open competition.

The agreement has an estimated value of SEK 3.75 billion and a maximum value of SEK 4.75 billion, according to a procurement notice. It covers the supply and servicing of Saab’s BT46 systems, which simulate combat for soldiers and military vehicles.

The Danish armed forces already use a significant number of the systems. The procurement agency says the additional equipment must be fully compatible with the existing fleet and support all its functions.

Existing systems limit competition

DALO says technical constraints and exclusive rights mean Saab is the only supplier capable of delivering the required systems and services.

NATO is developing common standards intended to improve compatibility between training systems from different suppliers. However, DALO says those standards are incomplete and would not cover all the interfaces needed to use every function of Denmark’s existing BT46 systems.

Replacing the entire existing system would also entail significant transition costs, the agency says.

The proposed agreement is scheduled to begin on 17 November 2026 and run until January 2037, with an option to extend it by five years. The notice does not specify how many additional systems Denmark plans to purchase. The framework’s estimated and maximum values are not guaranteed orders.

Saab is a Swedish defence group with approximately 31,000 employees. Its activities include military training and simulation systems, aircraft, weapons and sensors.