Supplying industrial products, materials and services to the U.S. Department of Defense (and its affiliated defense industry) will become easier. This is accomplished on the basis of the new Defense Priorities and Allocations System (NL-DPAS). The Ministries of Defense, Economic Affairs and Climate Change and the Netherlands Defence and Security Industry signed the agreement on june 16th.
‘The trade relationship with the US is essential for Dutch companies. Many businesses supply to major U.S. defense programs. Joining this Code of Conduct will better position companies to enter into contracts involving the US Department of Defense,’ said Ron Nulkes, NIDV director.
Dutch companies that commit to the NL DPAS by signing a Code of Conduct thereby declare that, if requested, they will supply the U.S. Department of Defense with priority. Conversely, the same applies to US companies that have committed to the US DPAS at the direction of the Department of Defense. These reciprocal agreements increase the security of supply to the defense organizations of both countries.
Netherlands Defense Priorities and Allocations System
The code describes the conditions under which a company can commit itself to the NL-DPAS and the rights and obligations this entails. Participation provides a ‘seal of approval’ for supply reliability. Signing the code provides Dutch companies with a preferential position. This is the case when they compete for US defense contracts.
The new NL-DPAS now simplifies the trade process between the Netherlands and the US and it increases security of supply for Defence from the US.
Faster eligibility for defense contracts
For companies, these agreements are attractive because they will be eligible for defense procurements (or (sub)contracts) sooner than companies that are not members of DPAS. The Dutch government supports this. At the NIDV annual meeting on July 6, representatives of the Ministries of Defense and EZK will discuss the cooperation with the United States. They will also discuss the military-industrial cooperation in America, which is essential for doing business there. Nulkes: “I am very grateful to both ministries for contributing in this way to better position the Dutch sector. More information on how Dutch companies can join will follow shortly.