Germany announces defence procurement reforms

Germany’s defence minister, Boris Pistorius, has announced major reforms to the country’s defence procurement system to strengthen collaboration with industry and help manage a steep rise in acquisition volume.  

Key reforms include updating Germany’s defence procurement agency the Federal Office of Bundeswehr Equipment, Information Technology and In-Service Support (BAAINBw) and making tenders more accessible.  

Presented to the defence committee on 20 May, the reforms will see an “adapted” BAAINBw become a central point of contact for “market and technology expertise” for the Bundeswehr (military).  

Another primary goal for the agency is to monitor the country’s defence supply chains and gain greater control over prices. It will also seek to bolster “industrial performance” through investment incentives and a closer working relationship with companies in the defence sector. 

Meanwhile, improving the tender process aims to help identify promising new military technologies at an early stage – in practice this could mirror the competitions hosted by the UK’s Defence and Security Accelerator, or NATO DIANA for example. 

The reforms will also allow companies to spend less time on the “procedural steps” involved in selling to the BAAINBw, as these are reduced to the minimum within the bounds of German law.  

The procurement agency itself will expand, with a new office in Bremen focused on space and maritime research, and another in Brussels, Belgium aimed at boosting collaboration with European partners and NATO.  

Through this expansion, the German military hopes to ensure more contact with “universities, companies, and laboratories in the regions”. 

Separately to the new offices, a second innovation centre will be opened in Kiel before the end of 2026 and additional locations are being considered. This follows the launch of a centre in Erding in February. 

Internally, the BAAINBw will be organised into programme and project teams structured according to the relevant procurement domains: air, cyber, land, naval, and space, with existing “external interfaces” continuing to act as points of contact for industry.