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Defence industry

FMV Ignored Documents in the Bidding

Published tisdag 7 juli 2009 kl 11.16
An armoured wheeled vehicle from Hägglunds

Documents ignored by Swedish Defence Material Administration FMV could have lost military vehicles manufacturer Hägglunds a 330-million-dollar deal to a Finnish competitor, Swedish Radio reports.

This is the latest twist in the story of Hägglunds, which last Friday filed a lawsuit against FMV for violating the rules for public bidding.

First, FMV claimed they had not received the relevant documents from Hägglunds. But then, when the documents appeared to have been there all along, FMV said they were not good enough.

According to FMV the offer from Finnish Patria of 113 armoured wheeled vehicles is both cheaper and better. But Hägglunds claims that FMV has not taken into account the millions of crowns that their offer would return as royalties to the public treasury, as a thank you for all the public money that has been invested in Hägglunds for developing the vehicles.

The deal has now been put on hold, pending the decision in the Stockholm District Court. If the court comes to the conclusion that everything has been done properly, FMV still needs an ok from the government to go ahead with the deal. If the court is not satisfied, FMV will have to redo the whole bidding process.

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