المملكة: Military industries specify 5 requirements for localizing the maintenance and operation of defense equipment

Military and security procurement

Includes the authority, beneficiaries and local contractors. While the policy excludes military and security purchases that were proposed or whose contracts were signed before the effective date of its implementation.

The Authority confirmed that the localization of maintenance is one of the most important components for ensuring the readiness of military equipment. However, readiness remains a top priority when it is not possible to reconcile it with the objectives of the policy.

Pre-strategic planning by the beneficiary entities in coordination with the Authority is the basis for achieving a balance between military readiness and the goals of localization. The policy also confirmed that its provisions do not conflict with international obligations or the regulations in force in the Kingdom.

Implementing localization gradually

The Authority, in coordination with the beneficiary entities, seeks to support and empower local contractors to enhance their technical and operational capabilities, in a way that ensures the sustainability of maintenance operations locally and with high quality. Localization is being applied gradually and thoughtfully to ensure that the readiness of contractors is increased without affecting the readiness of equipment.

The policy requires the beneficiary entities to submit maintenance work plans 24 months before signing contracts, clarifying the work that will be contracted, human capital requirements, and the priorities of localization elements such as the implementation site, personnel and spare parts.

The Authority is committed to sharing the necessary information with local contractors so that they can raise their capabilities in carrying out maintenance work with high efficiency.

Determine requirements Localization

The Authority, in coordination with the beneficiary entities, prepares the necessary studies to assess national capabilities and determine localization requirements, taking into account the principles of gradual localization and readiness, and provides the beneficiary entities with the results of these studies.

The policy stipulates that maintenance contracts are limited to the local contractor when there is the ability to carry out the work in accordance with the localization requirements, while obligating the beneficiary entity to ensure that localization requirements are included in the contracts.

The policy allows the local contractor to contract with a foreign contractor when necessary, Provided that the percentage of work carried out by the foreign contractor does not exceed 30% of the contract value, with an emphasis on transferring technology and knowledge to build national capabilities.

Accurate mechanisms

The Authority has developed precise mechanisms to measure commitment and achieve the policy objectives, as the Authority’s responsibilities include issuing performance report forms, collecting data, providing local contractors with a list of approved auditors, and informing the beneficiary entities of performance results and corrective measures.

The beneficiary entities are responsible for providing the Authority with the signed contracts and the percentage of completion on a quarterly basis. And provide any additional information that supports achieving the policy objectives. The local contractor is also obligated to submit quarterly reports on the rate of localization and implementation performance, in accordance with the Authority’s models and requirements.

The Authority explained that the policy will enter into force 180 days after the date of its publication on the Authority’s official website, which allows sufficient time for the beneficiary entities and local contractors to adapt to the new requirements and ensure their efficient implementation.