German defense minister Pistorius announces reform of Bundeswehr procurement

German Defense Minister Boris Pistorius has announced a reform of the Bundeswehr's procurement system, proposing to decentralize and flexibilize the process by dissolving all departments and introducing a corporate matrix structure.

The procurement agency, currently called the Bundesamt für Ausrüstung, Informationstechnik und Nutzung der Bundeswehr (BAAINBw) and based in Koblenz, has been restructured and renamed multiple times over the past 25 years. Nearly every defense minister in that period who held the post for more than a brief tenure has announced a major procurement reform, yet the chronic problems persist: procurement takes too long, is too expensive, and the products often have a "gold rim" — figuratively speaking — are maintenance-intensive, and sometimes have serious quality defects.

Previous attempts have included task forces, commissions, and the appointment of a management consultant as armaments state secretary to clean up the system. None have resolved the underlying issues.

The source notes that blame for the problems does not lie solely with the Koblenz agency. Competition among the service branches, a tendency to add capability requirements during development, and at times political games by the leadership also play a role.

Pistorius's plan, as outlined in headlines so far, is described as ambitious: decentralization, flexibilization, dissolution of all departments, and creation of a corporate matrix structure. The source says nothing speaks against a new attempt, noting that previous efforts have brought some progress. However, it cautions that Pistorius would be wise to resist the temptation to present himself as the one who will finally clean out the Augean stables, as many a Hercules has failed on that ambition.