The government today discussed a public contract of the Ministry of Defence for the supply of components of unguided rockets for the Hydra rocket system and the supply of ammunition for the 20mm cannon for the AH-1Z Viper and UH-1Y Venom helicopters. This unguided ammunition will be supplied to the Czech Army by the Czech company STV GROUP for more than CZK 3.7 billion.

Specifically, it will include a rocket motor including an inert training version, three types of live warheads for different types of targets, two versions of warheads for helicopter pilot training, and three types of rounds for the M197 air cannon on the AH-1Z helicopter.

More than 12,000 rocket motors will be acquired, plus a corresponding number of warheads of various types and purposes, and more than 150,000 rounds for the air cannon. Specific types and numbers are not given for security and strategic reasons. The estimated value of the procurement is CZK 3,740,000,000 excluding VAT and was determined on the basis of a market survey in October 2022 (Hydra rocket and rocket components) and February 2023 (20 mm ammunition).

According to the Ministry of Defence, the estimated value of the order corresponds to the amount of ammunition that, according to internal and alliance regulations, the Czech Army needs to ensure training and full operational deployment of the helicopters. This price originally corresponded to the maximum financial limit of the framework agreement (taking into account inflation) with the assumption of gradual acquisition of ammunition stocks but based on the deteriorating security situation in the world and the associated dramatically increased demand for military ammunition (exhaustion of production capacity currently two years ahead) and as a result of the more economical acquisition price, the Army of the Czech Republic decided to change its request in the following points:

• ordering the full operational and training stock of ammunition at once immediately after the conclusion of the framework agreement,
• replacing the financial limit of the framework agreement with the maximum amount of ammunition that can be ordered over the term of the framework agreement, which takes into account the tripling of the operational requirement that is discussed and considered in the alliance that individual states should have secured as a result of the current security threat,
• contracting prices only for the procurement of the current full ammunition requirement, thereby eliminating commercial risks and, given the current volatility of military equipment prices, it is more economical to renegotiate and verify prices by commissioning an expert opinion if additional supplies are required.

Hydra 70 unguided rockets and 20 mm cannon ammunition are among the strategically important armament of helicopter units. Without the acquisition of these munitions, the deployability of units armed with the new helicopters will not be assured, nor will alliance commitments be secured, nor the ability to deploy helicopter troops in the defence of the Czech Republic. The acquisition of the ammunition will thus lead to the fulfilment of the security interests defined in strategic documents such as the Concept of the Construction of the Army of the Czech Republic 2035, the Strategy of Armament and Support for the Development of the Defence Industry of the Czech Republic until 2030, the Defence Strategy of the Czech Republic and NATO Capability Targets, Codes and Statements. According to the Strategy for Armaments and Support for the Development of the Defence Industry of the Czech Republic until 2030, "the Ministry's requirements for the provision of military equipment necessary to ensure the capabilities of the Armed Forces of the Czech Republic represent a substantial security interest of the state."

The acquisition of the above-mentioned material will also contribute to the Czech Republic's ability to fulfill its NATO membership obligations, particularly in deploying the necessary military units in national and foreign operations. In this context, the Defence Strategy of the Czech Republic states that "adequate involvement of the Czech Republic in the building of Alliance capabilities and instruments of collective defence and deterrence is a priority in Czech defence policy," adding that "building well-armed, equipped, trained and staffed armed forces and creating conditions for their deployment is necessary now and as quickly as possible."

Under the helicopter acquisition contract, which also defines the types of munitions, the MoD is requesting and procuring specific products approved for use on the newly acquired AH-1Z and UH-1Y helicopters. Based on documentation from the US Government, the munitions are from the US manufacturer General Dynamics Ordnance and Tactical Systems, and no other munitions are authorized for use on the helicopters without losing all warranties or life cycle support under the FMS programme.

The Army of the Czech Republic ruled out the option of acquiring unapproved munitions from another manufacturer (the acquisition of new insensitive warheads would be economically unfeasible, and equivalent PGUs approved for use on the F-16 would require a lengthy approval process) and thus chose the sole manufacturer of the required munitions, General Dynamics Ordnance and Tactical Systems in the USA, whose exclusive industrial partner in the Czech Republic is STV GROUP.

The expected date of conclusion of the contract was set to 30 August 2024.