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Public procurement for innovation and offset in military aeronautics: KC-390 case

ABSTRACT

This article aims to analyze the opportunities generated by the offset agreements of the KC-390 program for the Brazilian Aeronautical Chain (BAC), as well as its limits and challenges. The KC-390 marks a turning point in the Brazilian Air Force's orders, standing out not only for the technological challenges overcome by Embraer but also for the technological opportunities offered to other Brazilian companies, resulting from compensation agreements signed with five foreign suppliers of systems and onboard components. Field research revealed that a significant portion of these offset agreements was linked to maintenance, reflecting the Brazilian Air Force's strategy to seek autonomy in the operational cycle of the new military transport aircraft and to reduce operational costs. Despite this direction, it is worth mentioning that at least two agreements - in the areas of avionics and secure communication radio - involved technology transfer and the development of a new product for the country. Thus, this case illustrates the window of opportunity created by orders of this magnitude, through which government authorities can boost the country's industrial and technological development through offset agreements..

KEYWORDS
Military aircraft industry; Public procurement for innovation; Offset

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