Organizes the suppliers

Minister Pistorius was presented with the initial results of the structural reform of the Federal Office for Equipment, Information Technology and Use of the Bundeswehr (BAAINBw), the redesign of procurement processes, and the establishment of a new innovation center. With this “Defense Reform Agenda,” further tasks assigned to the Minister by the Bundeswehr Conference in November 2025—following the Comprehensive Military Concept, the Personnel Build-up Plan, the Reserve Strategy, and the Debureaucratization and Modernization Agenda—will be developed in a timely manner.

The key messages:

• The BAAINBw will be restructured to be more flexible, enabling expertise and capacities to be deployed in an agile and more targeted manner. The focus is on strengthening interfaces, market monitoring, supplier management, and supply chain and price control. In addition, the procurement office will reestablish its regional presence in Bremen and further expand it in Dresden. A branch office in Brussels is also planned to improve networking with EU and NATO institutions and to coordinate multinational programs. Furthermore, we will strengthen the Government-to-Government (G2G) sector.
• The Bedarfsdeckung will be streamlined and standardized from planning through to procurement. The specific implementation will be based on the criteria of agility, acceleration, flexibility, and innovation capacity. In the future, there will no longer be a strictly sequential processing of process steps and documents. Instead, the approach will be tailored to the respective program or project.
•  
• The Bundeswehr Innovation Center in Erding, which opened at the beginning of the year, will be supplemented by another Bundeswehr Innovation Center in Kiel.

Reorganization of BAAINBw and the procurement process:

BAAINBw employees have achieved a great deal in recent years. Not only have they initiated and managed an unprecedented number of procurement projects, but they are also responsible for managing the military’s ever-growing pool of equipment.

Now, the future structure of the Procurement Office is being realigned for the future in order to sustainably manage the persistently high volume of orders, promote innovation within the armed forces, and cooperate even more closely with industry. The reform agenda is the result of six months of intensive work, extensive consultations, and numerous discussions. Over 600 reform proposals came from BAAINBw employees themselves. In addition, an external expert group from academia and industry provided valuable input. (The expert group’s work was carried out on a pro bono basis.)

The BAAINBw will be given a flexible internal structure aligned with the domains of land, air, sea, cyberspace and information space, as well as space. It will transition to a so-called matrix system, which prevents rigid silos. This will allow project teams to be assembled flexibly and agilely, and priorities to be established quickly. Expanded interfaces with industry are intended to enable the procurement office to become a central hub for market and technology analysis.

Other new priorities include market monitoring, active supplier management, and strengthening capabilities for supply chain and price control, including through the development of relevant in-house expertise. The significant increase in defense investment spending makes careful cost control essential, one that optimally utilizes the full legal scope for action.

To collaborate even more intensively and effectively with universities, companies, and research institutions and to attract qualified personnel, the BAAINBw will further expand its regional presence.

The branch in Bremen is intended to strengthen the space dimension at one of Europe’s leading aerospace hubs, given its immediate proximity to key industry partners and research institutions. In addition, as a hub for technology, naval affairs, and innovation, Bremen offers significant potential for industrial cooperation in the maritime domain.

The BAAINBw’s existing presence in Dresden is to be expanded to strengthen the cyber and information technology domains. Dresden is one of Europe’s leading innovation hubs for IT and technology (“Silicon Saxony”).

A representative office of the Federal Office of Defense Procurement in Brussels is intended to ensure early access to EU defense initiatives, better networking with partner nations, and coordination of multinational programs.

Furthermore, we will promote defense exports and government-to-government sales in a targeted and cross-ministerial manner.

Meeting demand will be further optimized, with greater emphasis placed on speed, innovation, and multinational cooperation. A central component is the categorization of cases into specific groups as early as the planning process—“Fast Track” for urgent and/or relatively simple procurements, “Innovation” for forward-looking technologies, and “Complex” for large-scale projects. Disruptive technologies, European procurement channels, and multinational cooperation are to be identified and promoted at an early stage. In this way, we aim to further strengthen Europe’s strategic sovereignty.

The measures will be implemented based on a detailed concept currently under development. The implementation of the “Defense Procurement Reform Agenda” will be managed by the Federal Ministry of Defense (BMVg) in close coordination with the Federal Office of Bundeswehr Equipment, Information Technology and In-Service Support (BAAINBw) and will be supported by accompanying change management. Additionally, a “Scientific Advisory Board on Procurement” will be established to intensify cooperation with universities and research institutions.

The Innovation Centers

The Bundeswehr’s Innovation Center in Erding, together with the established network of digital laboratories, already leverages a strong innovation ecosystem. In just a few months, it has demonstrated that industry, startups, academia, and the Bundeswehr can quickly launch joint projects. To further expand this successful model, the central innovation hub in Erding will be complemented by an innovation center in Kiel.

Kiel is an important location for the German security and defense industry, with a focus on shipbuilding, land systems, and naval electronics. We will leverage the proximity to the German Navy, established research institutions, and the robust local innovation ecosystem.

A detailed concept regarding the location decisions is currently being developed. The establishment process for the new innovation center in Kiel is proceeding in parallel with the expansion of staff at the innovation center in Erding and is expected to be launched later this year.