This is a best prospect industry sector for this country. Includes a market overview and trade data.
Starting 2017, Romania has committed to spend at least 2.0% of GDP on defense through 2027. The increased spending level offers a clear opportunity for U.S. defense equipment and service providers. Romania is also looking to modernize its own defense industry through international partnerships.
At present, Romanian MOD is considering the FMS cases as the first option for the acquisition procedures. International firms may be asked to contribute to this goal on volunteer base under FMS cases or under the offset law for all commercial contracts over €2 million ($2.2 million). In the last years, it was invoked the national security interest, basically security of supply, as a mandatory criterion for awarding contracts and in these cases the industrial cooperation or offset obligations are defined from the beginning. The Romanian Parliament must approve defense acquisitions in excess of €100 million ($110 million).
Due to the significant government changes in February 2020, the new government is evaluating the needs of the military and is assessing military personnel and previously tendered procurement and projects. Romanian government declared the defense industry is undergoing changes so Romarm will become a separate company, with all the other subsidiaries free to work.
- Tracked and Wheeled-Armored Vehicles;
- Infantry weapons and ammunition;
- Artillery systems and ammunition;
- Missiles systems and rockets;
- Powders, explosives;
- Equipment and subsystems;
- Low and medium altitude radar systems;
- Used U.S. fighter aircraft upgrades;
- Replacement Parts and Service;
- Defense Training and Consultation.
The allocation of resources for the transformation, modernization and endowment of the Romanian Armed Forces capabilities/structures will take place in accordance with the priorities set by the Program of transformation, development and procurement of the Romanian Armed Forces by 2026 and beyond, including the build-up and refilling of stocks. The financial allowances for the modernization of military endowment by means of new acquisition programs, modernization and/or general overhaul of the existing equipment will target the following categories:
- track and wheeled combat vehicles - armored personnel carriers, MBT’s, infantry fighting vehicles and their derivatives;
- field artillery systems - MLRS, self-propelled 155 mm and 105 mm howitzers, including ammunition;
- C4ISR systems — integrated communication information systems, brigade and division C2, specific equipment for tactical air controllers’ teams (JTAC), satellite communication system (SATCOM), network security systems, IT strategic equipment stocks, software, etc.;
- individual and group armaments and equipment — individual and collective CBRN detection and protection systems, NATO compatible individual weapons and specific equipment, including those for special forces, portable antitank missile systems, advanced individual combat systems;
- engineering and counter IED equipment;
- armored and non-armored all-terrain vehicles;
- multifunctional transport platforms;
- combat and transport aircraft, including specific communication and positioning systems;
- medium and heavy helicopters
- ground based air defense systems - SHORAD/V-SHORAD; air target systems for GBAD training; deployable radio relay modules;
- combat ships - Type 22-R frigates revamping, turbines, antisubmarine torpedoes, antipiracy capabilities, multifunctional corvettes, missile fast attack boats, mine hunters, riverine vessels, minelayer and minesweeper, assault boats and other naval platforms;
- support ships - support ships for special forces operations, harbor and maritime tug, riverine tug and logistic support ships;
- static and mobile ISR and electronic countermeasures systems - optical and optoelectronic equipment, ISTAR equipment, radars, ground mobile electronic warfare systems for the Air Force, SCOMAR system (Black Sea Traffic Control, Surveillance, Observation Complex System), CBRN reconnaissance and data processing equipment, maritime situation surveillance equipment, hydro weather systems etc.;
- other goods for the structures’ operating support, including integrated security systems for military units/objectives, ROLE-2 deployable medical facility and security containers.
The Romanian MOD advertises tender and contract opportunities valued over RON 1,000, or approximately $200, on the Electronic System of Public Procurement (http://e-licitatie.ro/pub) (SEAP), the Electronic Tendering portal. Access and registration on SEAP is free of charge. For sub-contracting opportunities it is suggested to engage directly with the defense contractor listed in the contract award. Some of the opportunities can also be seen on https://ted.europa.eu/.
Current defense procurement priorities: Tracked and Wheeled-Armored Vehicles; Artillery systems; Missiles systems and rockets; Fighter aircraft; Helicopters medium and heavy; Unmanned Aerial Systems; C4ISTAR systems; Satellite communication and surveillance services
Actors involved in the Defense Procurement Process:
1. The contracting authorities of the Romanian MOD (https://english.mapn.ro/):
- Armaments Department (http://www.dpa.ro), MOD acquisitions department;
- Romtehnica: (http://www.romtehnica.com.ro/site/en/), MOD Export-Import Company. Most of the defense-related procurement contracts and aspects related to transfer of technology, logistic support, technical assistance and personnel training are negotiated and signed on behalf of MOD by Romtehnica. They perform all the commercial and financial activities related to defense upgrading / modernization programs of the Romanian Armed Forces.
- METRA (https://www.acttm.ro/en/) R&D Agency of the Romanian army. METRA together with the military branches are defining the technical specifications for the tenders organized by Romtehnica
2. Romanian state-owned defense companies:
The National Company Romarm (http://romarm.ro/) is the largest local industry player for military equipment, ammunition, and maintenance services. Romarm is under the authority of the Ministry of Economy and Commerce, Defense Industry Department (http://www.economie.gov.ro/) and is composed of 15 subsidiaries.
3. The Romanian Office for Offsetting Special Technique Procurements
The Offset Agency’s major responsibilities include:
- Framing procurement policies
- Providing guidance to contracting authorities/entities and tenderers
- Preparing legislation
- Monitoring the implementation of public procurement rules
- Publishing and information sharing
- Maintaining relations with their counterparts
4. The Controllers: ANAP and DNA
The National Agency for Public Procurement (ANAP) (http://www.anap.gov.ro/) duties:
- Policy and law making, guidance, helpdesk and operational support, ex-ante control, and monitoring and supervision of the public procurement system;
- Ensuring a coherent and harmonized legal framework in the field of public procurement in line with the obligations derived from the application of the EU Directives;
- Implementing a proper verification system to ensure the unitary application of the legal provisions and procedures by the contracting authorities;
- Ensuring an efficient system of public procurement and supervising its functionality;
- Ensuring a permanent communication channel with the structures within the European Commission, with the correspondent public institutions from the Member States, and with the national bodies of public interest.
The National Anti-Corruption Division (DNA) (http://www.dna.ro/):
- Is a prosecutor’s office specialized in combating high and medium-level corruption;
- Is set up as a necessary tool in discovering, investigating, and indicting high and medium level of corruption cases;
- Contributes to reducing corruption, giving its support for a democratic society aligned to the European values.
5. The Referees:
The National Council for Solving Complaints (NCSC) (http://www.cnsc.ro/en/):
- Is the first administrative body with jurisdiction over public procurement;
- Aims to guarantee the compliance of contracting authorities with the legislation through the resolution of complaints submitted by any person.
The Administrative Litigation Section of the Court of Appeals
Romania’s defense industry is set to mature considerably as a result of active support from the government to restructure and modernize some of its sectors, but it remains relatively small compared to its European counterparts
Other relevant organizations:
National Agency for Controlling Exports of Strategic Products (ANCEX): www.ancex.ro
Association of Romanian Defense Producers (PATROMIL): www.patromil.ro
Black Sea Defense and Aerospace (BSDA) Trade Show: (http://www.bsda.ro), organized in Bucharest, every two years, with the support of the U.S. Department of Commerce. The 8th edition of this major Defense Trade Show in the region is planned to be organized in October 14-16, 2020.
Monica Eremia, U.S. Commercial Service