First Narew SHORAD Execution Contract Signed
The Armament Inspectorate has signed the first execution agreement with the PGZ-Narew consortium. The agreement in question covers the design and integration stages, regarding the components that would be involved in the Narew programme. This is the first execution contract tied to the framework agreement that had been signed during the MSPO 2021 event.
The agreement covers continuous project management and handling of the project implementation tasks in an ad-hoc manner, as per assignment by the Ordering Party. The agreement would remain valid over the whole period of the Narew programme implementation. This takes into account the division into stages, also referring to contracting of the performance agreements, implementation of those, and integration of components that are a part of the NAREW system.
As the Armament Inspectorate emphasizes, the agreement comprehensively harmonizes the project management processes for the major programme such as Narew. The contract is focused on the primary objective, namely the delivery of the Narew system components for the Polish military, taking into account the division of liability between the parties dealing with the individual processes within the programme. The agreement defines the programme management processes, on the military, and the industrial side. It also establishes a legal framework for all participants to use in cooperation (this refers to the PGZ-Narew Consortium companies and the Polish MoD organs.
The agreement value is defined as ca. PLN 18 million. The signing of the first performance contract translates into the implementation of the provisions contained within the performance agreement concluded by and between the Armament Inspectorate and the PGZ-Narew consortium, on 7th September 2021, during the MSPO event in Kielce.
Narew is a SHORAD system that would become a part of the Polish IADS. The procurement of 23 batteries in total is planned. These would then become a part of the inventory of the Army air defence regiments (replacing the Kub, and, partially, the Osa SAM systems), 3rd SAM Brigade (along with the Wisła systems, with which Narew is to cooperate within the IBCS system network), and land-based air defence units of the Navy.
The agreement signed is the first of more than a dozen execution contracts expected to be concluded, within the framework of the Narew programme. Elements of the system would be delivered by the PGZ Group, however - when it comes to the IBCS integration - cooperation with the US Government would also be required. Narew is to utilize a set of Polish radar technologies, with the missile procurement being based on a licensing agreement. Recently, the head of the Polish Ministry of Defence announced that the Armament Inspectorate recommended the British MBDA UK CAMM missile as the Narew effector. This, along with the memorandum signed with the British, translates into the initiation of the contractual agreements negotiation process. However, it does not mean that the aforesaid contracts are concluded.
The schedule of the Narew programme assumes that all performance contracts shall be signed by 2023, while the first test launches involving a joint task force using Narew and Wisła systems are scheduled to take place in 2026.
President of the management board at PGZ Sebastian Chwałek expressed a comment, regarding the agreement.
The agreement signed today is a foundation that would be used to implement the NAREW programme. It is a result of an entirely new approach towards the management of defence procurement programmes. The memorandum regulates the project management matters - on the side of our consortium, and the side of the military. It establishes institutional, administrative, and legal principles of cooperation for the parties involved. This formalizes the framework agreement signed in September and paves the way towards specific performance contracts, including a contract tied to the missile, and the launcher.
The PGZ-Narew consortium includes the following entities: Polska Grupa Zbrojeniowa S.A. [Polish Armament Group. (leader of the consortium), Huta Stalowa Wola S.A., Jelcz Sp. z o.o., MESKO S.A., OBR CTM S.A., PCO S.A., PIT-RADWAR S.A., WZŁ No. 1 S.A., WZU S.A., Military Electronic Works S.A. and ZM Tarnów S.A. The project may also involve other enterprises of the PGZ Group, and several privately-owned companies, R&D facilities, and academic bodies.