Switzerland’s Federal Council has accepted a package of defense-procurement reforms following a dispute over the promised fixed price for its F-35A fighter purchase.
The government accepted six parliamentary oversight recommendations in full and one in part, according to Defence Industry Europe’s report on the Federal Council response. The response was adopted on October 21 and published on October 23 after a parliamentary oversight report criticized the handling of F-35A pricing.
Swiss public broadcaster SWI swissinfo.ch reports that the reforms are intended to make defense procurement more transparent, improve risk management and strengthen the legal department of the Federal Office for Defence Procurement, or Armasuisse. The Federal Council also rejected the allegation that the U.S. contracts had barely been examined, saying that several officials had reviewed them in full and that relevant pricing clauses had been studied in depth.
The reforms address the procurement process rather than resolving the aircraft quantity or final cost. Defence Minister Martin Pfister has said available funding would probably cover only 30 aircraft instead of the planned 36, while parliament has approved a supplementary credit of CHF394 million. The Federal Council’s response does not determine the final number of aircraft Switzerland will acquire, Defence Industry Europe reports.
Under the accepted recommendations, risk management is to use project-specific quantitative assessments, with greater transparency around contingency calculations, inflation and risk allowances. The defense ministry will also examine whether negotiating mandates for major and complex purchases should require approval from departmental leadership or the Federal Council. Internal peer reviews and closer parliamentary involvement are being considered for high-risk acquisitions.
Armasuisse’s legal department has already been expanded into a procurement center of expertise, according to Defence Industry Europe. The government’s response therefore changes the oversight framework, but the fetched reports do not establish a final settlement of the F-35 price dispute or a revised delivery schedule.