On face value, this looks like a significant announcement
NATO Framework Agreement Signed
• DroneShield awarded first procurement framework agreement for C-UAS in NATO history.
• 3 year procurement framework agreement with extension options.
• The procurement framework agreement comes as drones continue to headline in armed
conflicts globally.
DroneShield Ltd (ASX:DRO) (DroneShield or the Company) is pleased to announce that the
NATO Support and Procurement Agency (NSPA) has approved the first Counter-small UAS (C-
UAS) procurement framework agreement in NATO history.
The NSPA procurement framework agreement has been awarded via COBBS BELUX BV,
DroneShield’s in-country Belgium and Luxembourg partner. The initial agreement is for 3 years,
with extension options.
The NSPA procurement framework agreement is considered significant, in that the total order of
magnitude of sales under the NSPA framework over the initial 3 years is expected to be significant.
Also, as a result of being on the NSPA framework, additional end-users are likely to place orders
with DroneShield. European NATO awards are expected to initially account for the bulk of the
contracts. The exact order amounts cannot be estimated at this time, and DroneShield will provide
further updates to the market as appropriate.
NSPA is NATO’s lead organisation for multinational acquisition, support, and sustainment in all
domains. The organisation’s objective is to obtain the best service or equipment for the customer,
at the best value for money, by consolidating requirements from multiple nations in an efficient way
through its turnkey multinational acquisition framework - Support Partnerships, which brings
together member countries to aggregate their demand and allocate production capacity according
to their priorities.
The NSPA procurement framework agreement is awarded as drones continue to prominently
headline in armed conflicts globally, including most recently the Iranian attack on Israel, and also
ongoing across Ukraine, and other locations.
Oleg Vornik, DroneShield CEO, commented: “The importance of being awarded this first
framework agreement, which is a distinctive feature of NSPA, is one of the most strategically
noteworthy agreements since the Company was founded. DroneShield is well positioned for the
potential order volume with the new production facilities and production ramp-up announced earlier
this year. Additionally, this contract provides further validation to the distributor model, where
DroneShield has undertaken a significant investment over last the 10 years to grow its network of
highly competent in-country partners in over 70 countries globally. This enables the Company to
leverage off local expertise and relationships in each of these individual country markets.”
