MMRCA Updates

Source : Financial Express

Despite getting gentle nudges from the government, the defence establishment does not seem to be ready for an early down-listing of the $10-billion 126 medium multi-role combat aircraft (MMRCA) contract in which companies from the US, France and Russia are in the race.

Sources told FE, "The field trial report of the six contenders has been sent to the director-general acquisition's office, who is expected to make recommendations and send it to the defence acquisition council (DAC) of the ministry of defence (MoD)."

"The DG's recommendations will not only be based on the field trial report but will also take into consideration the evaluation of the offset proposals of the six contenders. The Offset Technical Committee in the defence ministry has already initiated the process of evaluating the offset proposals," sources added.

They went on to clarify that they are under no pressure to downselect contenders prior to the visit of the US President Barack Obama, French President Nicholas Sarkozy and his wife Carla Bruni and the Russian President Dmitry Medvedev.

American companies, Lockheed Martin F-16IN, Boeing F/A-18, French Dassault Rafale, EADS Eurofighter Typhoon, Saab Gripen and Russian MiG-35 are in the running for the 126 aircraft deal which is expected to replace the ageing MiG-21s. According to sources, "Vendors who are compliant rule wise, Defence Procurement Policy and Technical offsets will ultimately be opened for consideration. Also, the lowest bidder, designated L1, will be selected as the medium multi-role combat aircraft (MMRCA)."

Once the contenders receive the evaluation of the Offset Technical Committee, the contenders for the MMRCA will give fresh offset proposals. After that, fresh recommendations will be sent to the defence ministry. Once the Cabinet Committee on Security gives the nod, negotiations between governments will begin, which could start early next year, sources added. 

The contenders have being invited to submit their offset plans and the IAF will meet different contenders to discuss flight evaluation reports once the field trials are complete. It may be noted that the IAF is considering "life-cycle costs" and not just the lowest bid for the MMRCA. The contract entails acquisition of 18 aircraft to be bought off-the-shelf and the rest to be manufactured in India under transfer of technology.