PPP solutions in defence - Example from Norway: Kystvakten


  • Jon Rognes

Publish date: 2009-12-31

Report number: FOI-R--2864--SE

Pages: 44

Written in: Swedish


  • PPP
  • Public Private Partnership
  • Norway
  • Coast Guard


The results of OPS-initiatives (Swedish abbreviation for PPP, private public partnership) in Norway was studied. The Coast Guard is the only full scale example of OPS in Norway at the moment. The Norwegian government shift in 2005 brought with it no further OPS-initiatives. The Coast Guard has implemented OPS on most ships used in daily operations. External shipping companies, the providers, own and operate the ships, which are specially built for the Coast Guard. The ships are leased from the providers on long term contracts, up to 15 years. Daily operations and maintenance is handled by the providers, who have their own personnel aboard the ships at all times. The Coast Guard pays for availability and functionality. There are at the moment three different providers competing for contracts. The relationships with the providers can be described as a partnership, with long term close cooperation, and with the providers´personnel closely integrated in daily work. Observed effects of the OPS-initiative: Short term effects: No shown effect on direct costs (+/- 5-10 % depending on how calculations are made) Higher availability (320-339 days at sea a year for OPS-operated ships comaped to 260-300 days for own ships) Perceived better service level Lower utilisation of government facilities (indirect effect) Transfer/contracting: Stable long term relationships Partnerships, not market based solutions Cooperation developed over time No major conflicts regarding contracts or performance Long term effect: Development of new ways of working initiated by provider, but with close cooperation on all organisational levels External long term contracts creates stability (lock in) The issue of internal competence at the Coast Guard (the capability to handle issues regarding the outsourced activities) must be handled long term. The OPS-solution can be a driver for change in the overall defence organisation.