Armasuisse has released new offset guidelines. The guidelines introduce significant changes to the industrial sectors eligible for offsets, refine the multipliers, and introduce a threshold. The aim is to support the “security-relevant technology and industry base” (STIB). Indirect benefits for both the defence and commercial sectors are expected to remain viable.
Switzerland’s new offset policy will apply to its procurement of 36 Lockheed Martin F-35As. That was the prediction of Albert Gaide, leader of the Swiss Aeronautical Industries Group of Swissmem, an association of mechanical and electrical engineering industries for German-speaking cantons. “Offsets are there to help the Swiss industry and not Switzerland’s armed forces. The industry needs offsets badly!” he told CTO.
South Korea’s Defence Acquisition Program Administration (DAPA) has launched a registration system for local companies supplying parts for weapons systems. DAPA now requires foreign contractors to review the availability of local parts. CTO asked DAPA what happens to the bids of companies that don't use parts on the registry. DAPA acknowledged the question but declined to answer.
India’s armed forces are pressuring the government to fast-track the acquisition of Russian helicopters, despite disagreement between the two countries over the level of indigenous content.
France has appointed a judge to lead an investigation into corruption allegations concerning Dassault Aviation. The allegations focus on the sale in 2016 of 36 Rafale fighter aircraft to India and the true value of Dassault’s Indian spend under its offset agreement. Lieutenant General Prakash Katoch (ret’d.) said it is certain that, beyond mudslinging among political parties, nothing will happen in India.