🇩🇪Germany

Lieferkettensorgfaltgesetz (LkSG) Compliance-Overhead bei Rüstungsaufträgen

2 verified sources

Definition

German defense contractors (Rheinmetall, Diehl, etc.) must comply with LkSG when bidding for government contracts. The SPOCK 1 contract (€1.7B) and similar large Bundeswehr procurements trigger enhanced due diligence requirements for subcontractors and suppliers. Manual audits, document collection from international suppliers, and multiple verification rounds create cost overruns in proposal development and contract execution phases.

Key Findings

  • Financial Impact: Estimated €50,000–€150,000 per major contract bid (15-25% of proposal management costs); €200,000–€500,000 per year for mid-sized defense contractors with 3-5 active bids
  • Frequency: Per contract bid cycle; ongoing for multi-year contracts like SPOCK 1 (2025-2030)
  • Root Cause: Lack of integrated supplier compliance database; manual cross-referencing of LkSG risk assessments; decentralized documentation; repeated audits for same suppliers across multiple bids

Why This Matters

This pain point represents a significant opportunity for B2B solutions targeting Defense and Space Manufacturing.

Affected Stakeholders

Compliance Officer, Procurement Manager, Proposal Manager, Supply Chain Director

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Financial Impact

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Current Workarounds

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Methodology & Sources

Data collected via OSINT from regulatory filings, industry audits, and verified case studies.

Evidence Sources:

Related Business Risks

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