SAAB Laments Danish Supreme Court Penalty Over DACCIS Systems

The Danish Supreme Court has ordered SAAB to repay about MDKK 187 plus interest costs, totalling about MDKK 243, to the Danish Defence Acquisition and Logistics Organisation (DALO) and to compensate DALO’s court costs.

The DACCIS dispute originates from a terminated contract concerning the command and control system DACCIS.

The amount to be paid by SAAB includes repayment of the damages awarded by the Maritime and Commercial Court in 2010, payments received under the DACCIS contract, interest and court costs. The payment will impact earnings in the second quarter of 2013.

DACCIS is a command and control system for the Danish Army developed to create common situational awareness and to monitor and lead forces. The development of DACCIS was started in 1998 by Maersk Data Defence – acquired by Saab on 1 January 2007 – and work with the current version began in 2005.

According to DALO, DACCIS did not fulfill the agreed requirements and DALO therefore terminated the contract and claimed a refund of monies paid. The DACCIS dispute was referred to the Maritime and Commercial Court in Copenhagen, and in 2010 the Maritime and Commercial Court rendered a verdict in Saab's favour. DALO appealed the verdict at the Supreme Court.

SAAB's view has always been that termination of the DACCIS contract was unjustified.

The Supreme Court's judgment cannot be appealed.