DSA 2024, Contracts Part 2

One of the Perdana Menteri class submarines being prepared to be lift onto the submarine yard at the Kota Kinabalu naval base. BSES/BHIC picture.

SHAH ALAM: As mentioned in the earlier story, this post will be the main story for the DSA 2024 contract signing ceremonies, conducted on May 9. Seventeen Letter of Acceptance (LOA) (worth RM3.30 billion); seven contracts (RM1.90 billion) and four Letter of Intent (RM1.83 billion) were signed at the event for the Defence Ministry.

The contracts ceremony for the Home Ministry was also conducted, worth RM2.166 billion, the bulk of which is for the police worth RM1.15 billion.

Defence Ministry signing:

LOI
1. BHIC Submarine Engineering- performance based contract for in-service support for the Perdana Menteri class submarines – RM1 billion.
2. Novatis Resources – procurement of an air traffic management system for Kota Kinabalu joint airs space management and coordination centre – RM45 million.
3. Global Turbine Asia – stock acquisition of A400M floating pressure turbine LPT – RM392 million.
4. BHIC Aero Services – supply and services for EC725 in service support – RM378 million.

LOA
Lumut Naval Shipyard – KD Jebat refit – RM99 million.
Weldan Marine Services – KD Baung refit – RM35 million.
Labuan Shipyard – KD Perak refit – RM87 million.
Maxis Broadband – Procurement of satellite ground station and associated equipment- RM49.8 million.
PT Nusantara Turbin Dan Propulsi – CT79C turboprop engine services – RM109 millions.
Airod Techno Power – T56A15LFE engine supply of articles, services and technical assistance – RM921 million.
PT Dirgantara – supply of articles, maintenance, and services for CN235 – RM430 million.
Zetro Services – maintenance of air defence radars, ground defence electronics equipment and air traffic control radar system – RM705 million.
Procurement of air traffic management replacement of Butterworth AB – RM44.4 million.
Airod Sdn Bhd – PC7 maintenance contract – RM92 million.
G7 Global Aerospace – Sustainment plan maintenance procurement contract LPM12Y for F/A-18D – RM173 million.
TM Technologies – Line rental and control government strategic communication network services – RM95 million.
Control and government network services for air defence radar – RM150 million.
AR Eastern – Supply and delivery of tools and maintenance of Army’s X-band satellite system – RM67 million.
Open Apps Sdn Bhd – Development of NCO phase 1B (1) for MAF – RM185 million.
Wayout Solution Sdn Bhd – School bus rental – RM49 million.

Contracts
Ketech Asia Sdn Bhd- Supply, delivery, testing and commissioning ATGW Medium Range – RM44.5 million.
Teguh Hiasan – Supply, delivery and commissioning of 30mm armour piercing rounds – RM38.5 million.
Rimbun Emas Defence System – Supply, delivery and commissioning of mortar bomb 81mm – RM35.6 million.
Destini Prima – Maintenance and supply of spare parts and supply 70mm rocket for the Army – RM44.1 million.
Air Asia – Charter services to transport Malbatt 850 forces to Beirut – RM31.4 million.
Leonardo Spa – Industrial Collaboration Programme in related to the supply, delivering and commissioning of two units MPA phase 1 and associated equipment – RM855 million.
Aerospace Technology System Corp – Industrial Collaboration Programme in related to the supply of performance and services of SU-30MKM – RM846 million.

Home Ministry Contracts:



— Malaysian Defence

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20 Comments

  1. This is big

    Aerospace Technology System Corp – Industrial Collaboration Programme in related to the supply of performance and services of SU-30MKM – RM846 million.

    Hope to know more about this already firm contract. Will it involve upgrades to the Thales systems (as requested by 12 Skn)?

    There is also a huge C-130H engine contract for Airod. Change to Series 3.5 upgrade + new NP2000 8-bladed propellers?
    https://pbs.twimg.com/media/EiEKz7_X0AAfUyU.jpg

    Hearing that the Kuwaiti hornets acquisition are still on. That explains why we requested for 10 Sniper ATPs.

  2. BHIC in service supports for the Scorpene would be the refit? RM1b same amount last time refit.

  3. … – “That explains why we requested for 10 Sniper ATPs”

    That would be a case of putting the cart before the horse. If it was really related to a potential Kuwaiti deal we’d be better off investing in ground support equipment first; something we dive have in abundance. I know you’re all excited but I really doubt we’d get the pods specifically for the reason you mentioned; given that it’s still very very early days and the Kuwaitis haven’t even indicated their willingness. Never mind that U.S. approval is a tedious process.

  4. For me the most interesting is the “Development of NCO phase 1B (1”]. Something very much needed and something we’re not doing fast enough.

  5. Buy the Kuwaiti Hornets, all of them,and be done with it, along with something like 10 fully equipped + 10 lesser equipped corvettes plus 5 ATR-72 size MPA, there is an urgency now to ‘counter’ you know who.

    Jangan buat tak tahu je ‘don’t know attitude’,nanti orang lain akan ambil/gunakan peluang/kesempatan, tak nak jadi mcm pulau batu tu.

  6. Both Herc & MKM contract sounds plausible that it might be engine change what with the budget nearly RM 1bil each.

    The ‘contract LPM12Y for F/A-18D’ sounds a bit low, is that for SLEPing a single F18, coz this program has been ongoing so I doubt the contract for the whole upgrade is only given now.

    The ‘supply, delivering and commissioning of two units MPA for RM 855mil’ was elaborated by foreign news that this cost actually has nothing to do with the planes itself but rather the ICP program of “upgrading Kuantan Air Base with the ground-based support and communications equipment needed to support the MPA” mainly “for Malaysian companies to be involved with the supply chain and lifecycle support of the ATR 72 MPA, as well as opening up new opportunities for Malaysian universities to collaborate with Leonardo”. The contract for this actually makes it more expensive than the planes themselves (est to cost RM 790mil).

    PDRM contract looks big too, but its mainly sunk into their Mothership program. Not mentioned how many units tho…

    “Never mind that U.S. approval is a tedious process.”
    If to base on DSCA lingo, the Kuwaiti Hornet purchase would, “support the foreign policy goals and national security objectives of the United States by improving the security of a key partner”

    And “Malaysia will have no difficulty absorbing this equipment into its armed forces.”

    More importantly being older planes and only augmenting the numbers to our existing fleet, these would “not alter the basic military balance in the region.”

    And lastly to add “Implementation of this proposed sale will not require the assignment of any additional U.S. Government or contractor representatives to Malaysia. There will be no adverse impact on U.S. defense readiness as a result of this proposed sale.”

    Basically such a deal would be a shoe in as we be in compliance to all such requirements pointed out. I dont see how difficult it can be, merely Govt bureaucratic redtape.

  7. @ joe

    Series 3.5 upgrade for the T56 engine of C-130H is just updates done during overhaul so it will have higher power + more fuel saving at the same time. I don’t see the engine to be totally replaced. The NP2000 propeller (hopefully will be included in that contract) is new of course, and it is actually much more advanced than the 6-bladed propeller of the C-130J.

    The MKM also does not need any engine replacement – yet. So that big amount of money I predict will go to the THALES system upgrade/replacement, as that is the topmost upgrade priority for now for the MKM.

  8. A billion bucks and not a single major replacement is quite hard to swallow the cost.

    As well does the Thales systems needs replacement, as I understand the major SLEP which should be done anytime now (after postponed by Mat Sabu), involves engine change? What about the PESA radar?

  9. Are the rumors about KD Jebat and KD Lekiu will be equipped with NSM true?

  10. No idea, really. Naval News interviewed the NSM people at DSA 2024 and they said the missiles will be available for the Lekiu class. As KD Lekiu is going to RIMPAC soon unlikely it will be integrated. Of course they could put it on the ship and get it to fire it at RIMPAC but I seriously doubt it. KD Jebat is getting refit soon and its likely she will be out in the yard for the next 24 months.

  11. @ joe

    “as I understand the major SLEP which should be done anytime now (after postponed by Mat Sabu)”

    You are a regular here, and TUDM have been putting the whole fleet through the 10 year overhaul since 2019, with only 2-3 left to do.

    The 1st 10 year overhaul does not require engine change (just overhaul). The next 10 year overhaul, around 2035-2040 (and at 2000 hours, if it is decided to be done) will need the engine to be replaced.

    The PESA radar upgrade (to SM2 standards plus other russian-sourced electronics) will be the 2nd priority. But this depends on the current geopolitical situation.

  12. Apparently there is such a plan. Makes more sense to do so on the Lekius rather than with the Kedahs. No idea how much integration and certification will cost though.

    “More importantly being older planes and only augmenting the numbers to our existing fleet, these would “not alter the basic military balance in the region”

    Since the 1980’s and 1990’s this has been part of the standard script in announcing possible sales; whether for a new jet or spares. A local defence mag used to publish U.S. announcements every month; the script was always a standard one which also includes the ‘X country “will have no difficulty absorbing this equipment into its armed forces’. Such announcements can be made prior or after approval and is a way of altering Democrats and Republicans [who can object to a sale] before actually officially notifying Congress.
    The same will be done with the transfer/sale of any gear; whether EDA or from another country.

  13. Will be available.

    Probably means they can install the already bought NSM now stored to the lekius.

    Kongsberg installed the NSM on Type 23 frigate HMS Somerset, replacing the Harpoons in just a few days.

    Probably too late to fit on KD Lekiu for the RIMPAC deployment, but i don’t think fitting them will be a major undertaking.

  14. … – ”Probably means they can install the already bought NSM now stored to the lekius.

    They will also have to work with the OEMs of various things to ensure integration and someone has to certify it.

  15. @Hulu
    “The 1st 10 year overhaul does not require engine change”
    Cant recall all the details as I anecdotally think Russki engines will be the first to replace as they dont last as long but thanks for the info.
    If we can run them down to 2040 (with the additional Hornets taking up the slack), and we can expect 5th gen MRCA to start arriving from 2040, then I dont see a need to replace MKM engines as we can timed to deprecate the MKM fleet with the MRCA arrival. Well hopefully such an arrangement can happen.

    The PESA radar upgrade is a ‘good to have but not necessary unless they spoil’.

  16. RSAF is planning to fly their F-15SG up to 2050, alongside their F-35.

    I forsee a use for the MKM similar to that, as a flying missile carriers, shooting at targets that are acquired by stealthy 5th gen MRCA.

  17. “shooting at targets that are acquired by stealthy 5th gen”
    That would mean its targeting system would have to integrate with Russki missiles, so if we get Western 5th gen this is not gonna happen. Looking at the timelines I dont think MKM and MRCA will overlap significantly. It will likely transition from MKM to MRCA.

  18. ” That would mean its targeting system would have to integrate with Russki missiles ”

    I forsee the MKM in the future would carry western missiles, like storm shadow now carried by Ukrainian SU-24.

    If we retire the MKM by 2035, then it is in service for only 25 years. The airframe, if given new engines in 2035-2040 can go without further overhaul to at least 2050.

    Current MKM engine
    Service life 2000 hours
    O/H interval 1000 hours

    New engine SM2
    More power, less fuel consumption
    Service life 4000 hours
    O/H interval 1500 hours

  19. ”I forsee a use for the MKM similar to that, as a flying missile carriers, shooting at targets that are acquired by stealthy 5th gen MRCA.”

    ”I forsee” the MKMs getting minor upgrades or parts replacements but nothing more than that. As it stands the intention is to fly them and spend as minimum until they can be replaced.

    ”If we retire the MKM by 2035, then it is in service for only 25 years. ”

    So? We retired the Fulcrums after a short service period.

    ” like storm shadow now carried by Ukrainian SU-24.”

    Three things which in reality play a huge part.
    – The Ukrainian Su-24s are able to operate in areas where Russian fighters are not present and where ground based AD is ”thin”. In our context it’s questionable if the same circumstances will be replicated.
    – The Ukrainians benefit from external intel and they have some level of ISR capability. Great to have Storm Shadow but we have to be able to detect targets and the carrying platform has to be able to fly within range in order to release its ordnance. They will be instances where a missile is not launched at maximum range for a variety of reasons; irrespective of the fact that it may have a paper range of ‘X’ km.
    – You will also note that MBDA and Western governments had no issues with the Ukrainians rigging Storm Shadow to Su-24s due to the acute need. Will they allow us to do the same with our SU-30s or are you assuming they will?

    BTW this is not a ”constant critique of anything you say” but pertinent facts and me pointing out that what appears great on paper might differ in reality and that conditions faced in the Ukraine war might/will differ from any future war we’re involved in. As the cliche goes : ”no two wars are exactly the same”.

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