The Armed Forces procure materials and services at a value of roughly 16 billion NOK annually, ranging from larger armaments investment programs to small scale procurement of supplies or services.
The Norwegian Defence Materiel Agency (NDMA) is the main responsible entity for procurement for the Armed Forces, and is responsible for the vast majority of procurement contracts. On many product areas, NDMA will enter into framework agreements that can be used by other entities within the Armed Forces. Such framework agreements usually have a life-span of two to four years. Procurement related to armaments (armaments systems) is usually performed by one of NDMA's five Capacity Divisions, while procurement of supplies normally is the domain of the Norwegian Defence Logistic organisation (NDLO) Supply Division or the C&IS Division.
The Armed Forces are subject to the Norwegian public procurement act of 16 July 1999 (LOA), with corresponding Regulation on public procurement (FOA) and Regulation on defence and security procurement (FOSA). Certain contracts awarded by the Armed Forces are exempt from these regulations, primarily procurement of armaments and other war material for defence purposes, and procurements involving classified information when these are essential for security interest of Norway.
The Armed Forces in addition comply with internal regulations concerning procurement.
HOW THE ARMED FORCES PROCURE
NDMA will subject all contracts to competitive bidding as far as possible. All tenders will be published on DOFFIN, the "tender daily" used by all Norwegian public entities. Some tenders will due to security classification not be published, and in those instances the Armed Forces will address the appropriate suppliers directly.
NDMA emphasises the importance of proper ethical conduct within the defence procurement area. All employees are responsible for building integrity and creating a working environment characterised by openness, where transparency and equal treatment of suppliers are important principles. Decisions regarding the award of contracts shall be documented and verifiable.
General political guidance pertaining to defence related procurement can be found on the Royal Norwegian Ministry of Defence website.