Project duration for the reconnaissance drone system (ADS 15) to be extended
Bern, 20.12.2023 - In view of the technical problems in early 2023 and in particular the volatile situation in the Middle East, the Federal Office for Defence Procurement armasuisse has agreed with the supplier of the ADS 15 (Elbit Systems Ltd) on an extension of the project by two years up to the end of 2026. As compensation, Elbit has to deliver an additional support package to Switzerland and extend the warranty period for the Swiss drones by two years. Moreover, Elbit has provided binding performance guarantees which are secured by extensive financial penalties in the event of non-fulfilment.
Due to a technical incident in March 2023, the flight operation of the ADS 15 in Switzerland had to be interrupted for several weeks. As a result, armasuisse commenced negotiations with the Israeli supplier Elbit about the compensation payments for the costs which had been incurred. In addition, Elbit had to pay contractual penalties for the delays which were caused by the technical problems.
With the volatile situation in the Middle East, the status quo worsened from October 2023. Since then, Elbit has been working under considerably more difficult conditions. In addition, it is currently not possible for Swiss specialists to travel to Israel, for example, for acceptance work. In view of this as well as due to the delays which arose in early 2023, armasuisse considered it necessary to grant the supplier more time for the contractual performance. armasuisse and Elbit set out the project extension and corresponding compensatory measures bindingly in a contract addendum in mid-December 2023.
Extensive compensation payments
The end of the project is now scheduled for the end of 2026 instead of for the end of 2024, as previously. Elbit has to compensate Switzerland for the longer duration of the contract as well as for the costs which were incurred in early 2023. The company has committed to deliver armasuisse an additional support package valued in the low double-digit millions. In particular, this will cover additional spare parts as well as other material for operating the drones in Switzerland. Elbit has also extended the warranty period for all Swiss drones by two years. The term will commence from the time of successful fulfilment of the contract. Finally, Elbit will have to pay extensive penalties if it cannot provide the agreed services in time. These penalties will exceed the contractual penalties estimated and asserted during the course of the project to date many times over.
Project plan will be revised
Due to the volatile situation in the Middle East, delivery of the three outstanding Swiss drones and the accompanying ground control stations could not take place in the current year as originally scheduled. In general, it is still not possible to make any conclusive statements regarding the further consequences of the conflict on the procurement of the ADS 15. From this initial situation, armasuisse and Elbit are currently developing a detailed project plan for the following year. armasuisse and Elbit have also agreed to hold joint weekly project meetings with immediate effect. Should further developments make it necessary, any adjustments and measures can be initiated as early as possible.
Project ADS 15
ADS 15 is an unmanned and unarmed reconnaissance system. The drones are used for situation and target intelligence, but can also be equipped with different sensors if necessary. Among other things, the drones enable large areas to be monitored and contribute to protecting critical infrastructures as well as own forces. The drones can be deployed during the daytime or at night. The users of the system are military and civilian authorities such as Cantonal Management Staff, police and rescue agencies and the Federal Office for Customs and Border Security (FOCBS). The Swiss procurement comprises six drones including ground components, simulator and logistics.
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