Industrial Cooperation Contracts for foreign defense contractors supplying to Danish armed forces.
Foreign suppliers of defence equipment for more than 50 million DKK to the Danish Armed Forces will in certain cases be required to enter into an Industrial Cooperation Contract, ICC, with the Danish Business Authority (DBA).
The decision making process: 1) IN EACH acquisition the Ministry of Defence evaluates if industrial cooperation is necessary to uphold Danish national security interests. 2) IF SO the Ministry of Business and Growth evaluates if such an industrial cooperation will distort the civilian market. 3) IF NOT the Ministry of Business and Growth will decide to claim and offset obligation on the acquisition.
4) The offset obligation will be incorporated in the tender. 5) The Ministry of Business and Growth (DBA) will sign Industrial Cooperation Contracts with the potential foreign supplier(s). 6) The Ministry of Defence will sign the acquisition contract with the selected foreign supplier(s).
Industrial cooperation plays an important part in the development and internationalization of Danish defense industry.
Since 2010, the value of ICC applications have been submitted in these categories:
Offset obligations for a foreign defense contractor can be fullfilled in two ways: 1) Via directs buys of defense related products and services from Danish companies or 2) Via engaging in development projects with Danish defense companies within the fields of defense products and services.
Offset obligations fullfilled:
Danish Business Authority (DBA)
DBA is the national agency responsible for Industrial Cooperation Contracts. An Advisory Board for Industrial Cooperation Contracts chaired by DBA, monitors the work of the DBA on these Contracts and is consulted on matters of principle. Members of the Advisory Board for ICC's are representatives from the Ministry of Defence, Defence Command Denmark, the Central Organization of Industrial Employees in Denmark, the Confederation of Danish Industries, DI and the Danish Defence & Security Industries Association, FAD. FAD supports DBA and foreign defence equipment suppliers in the process of Industrial Cooperation Contracts. FAD offers foreign OEM's assistance in identifying opportunities for cooperation and in arranging business meetings, company visits etc. with relevant Danish companies. See links for contact details for the relevant DBA representatives, the Regulation on Industrial Cooperation and the ICC obligations.