Defence & Space: Legal advice for the future of defense

KPMG Law advises the defense sector in a rapidly changing environment. Our legal advice supports the transformation of the armed forces – from strategic planning to operational implementation along the entire value chain.
With our extensive experience and industry expertise, we offer tailor-made solutions for the complex legal challenges in the defense sector. Our services range from supporting public procurement processes and advising on infrastructure projects to assisting with compliance and export control.
We understand the specific needs and requirements of the defense industry and offer tailor-made solutions. Our legal solutions are designed to provide holistic support for contract and task fulfillment in the defense sector.
Let’s shape the future of defense together. Contact us to find out more about our legal services.

1. Public law in the area of defense

1.1 Award procedure and procurement including public price law according to VO PR 30/53 and offset transactions

Our advice includes the legal support of public procurement processes in the defense sector – from tendering to bid evaluation and review. It also includes public pricing law, including price audits and the preparation of LSP calculations as well as the drafting of contracts with suppliers, particularly in the case of state-regulated prices.

1.2 Infrastructure projects

We advise on infrastructure projects. This includes advice on the planning, construction and operation of defense-related infrastructure projects as well as real estate law.

1.3 Subsidies and investment promotion

Funding initiatives in the areas of research and development and armaments are likely to increase. Companies should find out at an early stage which offers are of interest to them and how they can best position themselves and participate, for example via joint ventures or in cooperation with research institutions. There are a number of programs and funds at EU level (e.g. EDF, EDIDP). We can provide support in identifying the right funding programs, applying for funding and creating internal structures to manage the funds. We also advise on legal issues, from the application process to the defense against reclaims.

1.4 Contaminated sites and the environment

We can also provide regulatory support in environmental law

Among other things, we advise you on the legally compliant implementation of current and future regulations on extended producer responsibility and waste disposal.

We provide comprehensive advice on environmental law to the public sector and private companies in the defense industry/resilience sector. Among other things, we provide support with site selection and expansion with regard to planning permission requirements, approval procedures and modification approval procedures as well as compliance with new approval requirements due to the amended Industrial Emissions Directive.
We also support you with planned changes of use and production conversions in the context of cooperation with companies from other sectors, with environmental DD audits and with the implementation of a sustainability strategy.
One of the greatest future challenges facing the defence industry is resolving the conflict between security and sustainability. Regulatory requirements and transformation processes towards climate neutrality require early identification and legally compliant implementation of the framework conditions.

2. Compliance, export control and sustainability

2.1 Compliance, product safety, conformity requirements

Product compliance management across the entire product life cycle from development, production, instruction to observation in the field is important to ensure that products comply with legal and military standards. Appropriate and effective internal processes and controls as well as clear lines of responsibility help to ensure product compliance and avoid liability risks.
Our consulting services cover the development and review of internal compliance systems – especially for product safety and liability-related requirements. It includes conformity assessments, risk management and legal and standards-based product requirements.

2.2 Investment control, foreign trade law, export control / arms export law

We also advise you on licensing requirements and the implementation of control mechanisms for the export and use of security-relevant goods. This includes the classification of goods, usage controls, sanction regulations and investment audits in the case of foreign participation.

2.3 ESG and supply chains

The defense sector is also affected by regulatory requirements on corporate sustainability and human rights due diligence in global supply chains. We advise on everything from risk analysis and preventive measures to ESG reporting and compliance with the Supply Chain Due Diligence Act and the CSDDD.

2.4 Data and confidentiality protection incl. security checks

Our consulting services also include the handling of confidential information and classified data. In this context, we also advise on security audits in accordance with the SÜG and protective measures for projects with confidentiality levels.

This includes, for example, security checks for suppliers and consulting companies.

3. Security and technology

3.1 Cybersecurity and IT law

In the area of cyber security, we advise you on the legal requirements for IT systems in critical infrastructures and on security requirements in the digital space. This includes data protection, incident management, system hardening and regulatory obligations such as the IT Security Act or NIS2.

3.2 Autonomous systems and innovation / AI

We also advise on legal issues in connection with the development and use of autonomous technologies and AI. This also includes aspects such as regulation, liability, ethical standards, export controls and research cooperation.

4. Corporate strategy

4.1 Company takeovers, cooperations and antitrust law

In M&A projects, we advise on all legal issues, in particular on the FSR notification requirement for foreign subsidies. The FSR notification obligation applies to larger transactions or tenders in the EU, but smaller cases or activities can also be taken up for review by the EU Commission.
Our advice also includes antitrust support for cooperations and strategic alliances.

4.2 Company takeovers, cooperations and antitrust law

We advise you in the context of investment reviews under the AWV and merger control proceedings in the security-relevant sector. This includes the legal structuring and support of cooperative projects between companies, also in regulated markets.

In Germany (and now almost every other industrialized country), investments in the armaments sector are subject to notification. The notification procedures are similar to the classic merger control notification procedures and are regularly carried out by us for our clients.
Increasing activity in the armaments sector goes hand in hand with increasing cooperation efforts We support cooperations from the initiation to the conclusion of the cooperation agreement.

4.3 Liability and risk management

Our consulting services also include the identification and management of legal risks in operational business processes. This includes contractual risks, recourse issues, insurance strategies and dispute management.

Legal disputes arise particularly in relation to suppliers. Here we offer you litigation and claims management.

4.4 Labor law

Special individual and collective labor law issues arise in the security-related environment. For example, there are increased confidentiality obligations and special conditions of employment. As a rule, intensive security checks are necessary as well as special clauses in employment contracts and works agreements.

4.5 Financing

Our legal advice covers all areas of financing, intra-group financing and acquisition financing in the context of acquisitions and/or takeovers. We also provide legal advice on new or restructuring existing credit lines, optimizing the capital structure and in the context of large, cross-border syndicated financing, refinancing and amend & extend.