By BURAK EGE BEKDIL, ANKARA
Turkey’s procurement and military authorities have turned to local industry for the country’s second batch of F-4 Phantom fighter upgrades, officials here said, killing the chance that Israel Aircraft Industries (IAI) might continue as prime contractor on the program.
The new 48-plane contract follows the initial batch of 54.
“We have the capabilities to lead the upgrade program,†a senior procurement official said. “That, however, does not rule out foreign technology support if and when there is need.â€
Recently, the Ministry of Defense, the office in charge of the F-4 upgrades, notified the Undersecretariat for Defense Industries, or Savunma Sanayi Mustesarligi (SSM) in Turkish, of its decision to give the upgrade work to the procurement office.
“We have been asking for the control and management of this program in order to seek a local solution,†the procurement official said. “This is what we’re going to do.â€
The previous upgrade contract had been awarded to IAI, Lod, Israel, which upgraded 28 Turkish F-4 fighters at Israeli manufacturing plants, and the remaining 26 at a Turkish air base in Eskisehir, 240 kilometers northwest of Ankara.
“The local option effectively has killed IAI’s chances to win the second batch under a prime contractor structure,†an Ankara-based source said.
Industry sources said the upgrade contract would have gone sole-source to IAI had the Turkish authorities not opted for a local solution.
SSM already has asked aerospace company Tusas and military electronics company Aselsan to make initial studies for the upgrade program. Both companies are based here. Tusas’ majority shareholder is SSM, and Aselsan, Turkey’s biggest defense company, is owned by the military.
“Either Tusas or Aselsan will be tasked with contract management for the upgrade program,†an SSM official familiar with the program said. “In any case, the main contractor for the F-4 upgrades will be a local company.â€
But the SSM official said the chosen local prime contractor may at any time during the program “buy technology and/or consultation from IAI.â€
Under the local structure, the same official said, the local prime contractor would naturally ask for offers from IAI for various components required for the upgrades.
“But the prime contractor will not be bound by IAI. To ensure cost-effectiveness, it may ask for offers from other foreign companies too,†he said.
Most importantly, analysts said, the systems integration work for the upgrade program will be done by a local company.
“Apparently, the Turks aim to gain systems integration capabilities and end their foreign technology dependence with this move,†said a London-based Turkey specialist. “It’s a wise move if Turkey wants to boost its local industry,†he said. “But at the same time it may turn too costly and too slow.â€
Local industry sources said they estimate the cost of the second F-4 upgrade program at around $500 million. A military official said the Air Force already has slated $400 million for the upgrades.
source: http://www.defensenews.com/story.php?F=501490&C=airwar
Turkey’s procurement and military authorities have turned to local industry for the country’s second batch of F-4 Phantom fighter upgrades, officials here said, killing the chance that Israel Aircraft Industries (IAI) might continue as prime contractor on the program.
The new 48-plane contract follows the initial batch of 54.
“We have the capabilities to lead the upgrade program,†a senior procurement official said. “That, however, does not rule out foreign technology support if and when there is need.â€
Recently, the Ministry of Defense, the office in charge of the F-4 upgrades, notified the Undersecretariat for Defense Industries, or Savunma Sanayi Mustesarligi (SSM) in Turkish, of its decision to give the upgrade work to the procurement office.
“We have been asking for the control and management of this program in order to seek a local solution,†the procurement official said. “This is what we’re going to do.â€
The previous upgrade contract had been awarded to IAI, Lod, Israel, which upgraded 28 Turkish F-4 fighters at Israeli manufacturing plants, and the remaining 26 at a Turkish air base in Eskisehir, 240 kilometers northwest of Ankara.
“The local option effectively has killed IAI’s chances to win the second batch under a prime contractor structure,†an Ankara-based source said.
Industry sources said the upgrade contract would have gone sole-source to IAI had the Turkish authorities not opted for a local solution.
SSM already has asked aerospace company Tusas and military electronics company Aselsan to make initial studies for the upgrade program. Both companies are based here. Tusas’ majority shareholder is SSM, and Aselsan, Turkey’s biggest defense company, is owned by the military.
“Either Tusas or Aselsan will be tasked with contract management for the upgrade program,†an SSM official familiar with the program said. “In any case, the main contractor for the F-4 upgrades will be a local company.â€
But the SSM official said the chosen local prime contractor may at any time during the program “buy technology and/or consultation from IAI.â€
Under the local structure, the same official said, the local prime contractor would naturally ask for offers from IAI for various components required for the upgrades.
“But the prime contractor will not be bound by IAI. To ensure cost-effectiveness, it may ask for offers from other foreign companies too,†he said.
Most importantly, analysts said, the systems integration work for the upgrade program will be done by a local company.
“Apparently, the Turks aim to gain systems integration capabilities and end their foreign technology dependence with this move,†said a London-based Turkey specialist. “It’s a wise move if Turkey wants to boost its local industry,†he said. “But at the same time it may turn too costly and too slow.â€
Local industry sources said they estimate the cost of the second F-4 upgrade program at around $500 million. A military official said the Air Force already has slated $400 million for the upgrades.
source: http://www.defensenews.com/story.php?F=501490&C=airwar