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The delay in the field trials for the multi-billion dollar contract of 126 medium multi-role combat aircraft (MMRCA) for the Indian Air Force (IAF) has caused another turnaround of affairs for the interntional majors. Due to the incompletion of the field trials, the global firms vying for the MMRCA deal will either need to extend the validity of their commercial bids submitted over two years ago or formulate fresh proposals.
The original validity of the commercial proposals handed over by the global majors lasted for 24 months which ends this month. Since the proposals were handed over by the global bidders in April 2008, their validity will expire this week. According to sources, the backlash of this to the Indian government will be a possible hike in the value of the MMRCA contract.
The contenders for the MMRCA contract are the F/A-18 ‘Super Hornet’ by Boeing, F-16 ‘Falcon’ by Lockheed Martin, Swedish ‘Gripen’ by Saab, ‘Rafale’ by French firm Dassault, the Russian MiG-35 by United Aircraft Corporation and Eurofighter Typhoon (consortium of British, German, Spanish and Italian companies). The MMRCA contract is worth $10.4 billion which entails the acquisition of 18 jets to be bought off-the-shelf and the rest to be manufactured in India under transfer of technology. The trials of the MMRCA are currently taking place in India and are expected to wind up by June this year.
As per the norms set by the Indian government, the commercial bids will be opened only after the field evaluation test and staff evaluation have been carried out. Currently, the global aviation majors have the option of increasing or decreasing their price quote or even re-formulate a price after the outcome of the trials. In case the global firm is submitting a fresh bid, the Defence Procurement Procedure (DPP) will return the original bids unopened to the bidder.
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