07 Desember 2013

No Bidders in DND’s Assault Vehicle Deal

07 Desember 2013

Samsung Techwin AAV-7A1 (photo : Militaryphotos)

MANILA, Philippines - Defense officials declared a failure last month’s bidding for the supply of eight brand new amphibious assault vehicles worth P2.5 billion for the Marines.

The STAR learned that the bidding did not attract any offer from suppliers, and that only Samsung Techwin of South Korea purchased bid documents, but did not submit a bid.

In a letter to the Department of National Defense’s Bids and Awards Committee (BAC), Samsung Techwin said it might not be able to satisfy some conditions set by the bid documents, including the government’s position to seek a two-year warranty, a major cost driver.

Samsung Techwin said the amphibious assault vehicles are normally for combat operation, and that their suppliers are not willing to extend the warranty coverage beyond the first year.

“For our company to solely assume the responsibility for the 2nd year warranty will come at a high cost that will drive our price proposal way above the approved budget,” read the letter.

Samsung Techwin also believes that the government’s decision to increase the number of operation bases to four from two would also raise costs.

“The combined costs of the Harris radios and additional two operational bases cannot be accommodated in the budget,” read the letter.

Samsung Techwin also mentioned the need to clarify certain features of the Harris radios to be installed and the turnaround time, which it wanted increased to 90 days from 60 days.

“We deeply regret not joining the bid because we are sure to be disqualified anyway due to the previously mentioned reasons,” read the letter.


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