When procuring defence and security equipment and services, the interests of the nation and its armed forces should be the central consideration. Unfortunately, decision makers often give precedent to domestic and international political concerns over long-term, strategic goals. International political backroom deals and arm-twisting can mean that the contract is awarded to a company because of that bidding company’s nationality, rather than the merit of its offers.  A government may choose to award a contract to maintain political ties with a current ally or curry favour with a prospective one.

For example, if a government wants to be allied with another, leaders may make agreements; one leader may agree to buy weapons from a company from the country of the other leader in order to gain favour with that leader. With major contracts, this can be an economic boon to a president, and they can, in turn, gain favour with the defence industry in their country. In many countries, the defence industry has a powerful lobby. Thus it is in the interests of leaders to gain favour with them.

Defence and security issues are inherently political, making political calculations difficult to avoid in the procurement process. Indeed, purchasing weapons from allies is often a strategic decision to support a nation with similar global interests. This is not necessarily bad; however, a decision to award contracts based purely on political interests can mean that the government overpays, the equipment or services provided by the company are inferior, or that goods and services are purchased that are not what the military needs.

Ultimately, it reduces competition between companies and blurs the line between business and politics.  Whenever possible, strategic considerations should take priority when awarding contracts.

Such political calculation will likely always be a part of the defence contracting landscape. Nonetheless, having a robust, high-integrity defence acquisition process is as good a protection as possible against arbitrary, short-term arrangements made at a political level.

Read more on Procurement Risks.

Read more on Our Work.