SHAH ALAM: Last August, Malaysian Defence wrote that the Defence Ministry issued a tender for the upgrade of six Hercules C-130H airlifters of the Royal Malaysian Air Force. The post:
The tender notice:
AVIONIC UPGRADE PROGRAM -2 FOR SIX (6) UNITS OF C130H AIRCRAFT FOR THE ROYAL MALAYSIAN AIR FORCE (RMAF) AND THE GOVERMENT OF MALAYSIA
Bidders who are interested should take part in an online field visit on August 29. Bidders can still take part in the tender even if they do not take part in the field visit as this is an international tender. The tender itself originaly was supposed to close on October 10 but it has now been extended to December 9. Local companies can also take part in the tender but must produce the original authorization letter from the OEM or System Provider or Integrator. The bidding document is RM1,500 and it will be refunded to bidders not selected for the tender.
The indicative cost of the project is RM278 million for the whole programme with the first aircraft acting as the test article, according to industry sources.
The tender was published on August 20 and was supposed to close on October 10, but the deadline was extended to December 9. On December 16, Malaysian Defence wrote:
Checks on the ministry’s website showed that eight bids were made for the tender. As this is an international tender, six of the bids were made in US dollars. The other two were in Ringgit Malaysia.
The first bid is US$99.8 million (RM445 million); second, US$47.7 million (RM212 million); third US$72.4 million (RM322.76 million); fourth US$115.9 (RM516.68); fifth US$61.8 million (RM275.2 million); sixth US$65 million (RM289.77 million); seven RM264.8 (US$59.40) and eighth, RM277.9 million (US$62.81). It is likely the bids in ringgit were put by local companies.
Do note that the figures listed below are those marked on the envelopes of the bidders, and the government is not bound by the lowest bid or any other bids. That said only the second, fifth, seven and eight bids are lower than the indicative cost.
It is understood now that two foreign bidders have been down selected for the contract, but RMAF has not made the final decision. The service has yet to decide whether to proceed with the Letter of Award as both companies wanted to do the whole programme in their respective countries.
RMAF – which stated in the tender documents that it reserves the right to decide where the upgrade programme be conducted – preferably wants the work to be done locally or at least for the other five aircraft. Work to upgrade the Sukhoi SU-30MKM, Boeing Hornet F/A-18D and the Pilatus PC-7 MK IIs are being done locally though the latter had the first aircraft done in Switzerland OEM factory. The only upgrade work done abroad are the ones for the Airbus A400M airlifters and the conversion of the CN-235s into MPA.
The Defence Ministry and RMAF have stated previously that they prefer such work to be done locally to reduce costs and to provide the opportunity for transfer of technology to local companies. Another advantage of doing the upgrade locally is that if funding for the programme is delayed or cut, it is more manageable. This is apparent with the Hornet and Sukhoi SLEP programmes. This cannot be done if it is done overseas. Especially when RMAF needs to have a project team there to oversee the upgrade programme.
— Malaysian Defence
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Bunch of very tough workhorses
On the PC-7 MkII TSSR/SLEP
Actually at least 2 aircraft was sent back to Switzerland to change airframe, M50-02 and M50-01. What is the status of this project? How many PC-7 MkII to get new airframe (basically new aircraft with existing engines, ejection seats, avionics like the MB-339CM) ? There are rumors of TUDM looking at PC-21, but i would prefer TUDM to use PC-7 MKX or convert all of the existing PC-7 MkII cockpits to MKX spec.
As for the C-130H avionics program, is Turkiye taking part? which 6 Hercules is being modified, the youngest 6 or the oldest 6?
https://x.com/KeremHok/status/1899247421776925093
will the need to appease Donald J Trump affects the selection outcome?
AFAIK, the two foreign companies mentioned in the story are not from Turkiye. It is likely both are offering Rockwell Collion avionics.
“upgrade of six Hercules C-130H”
We have 10 in total. Meaning not all will be upgraded due to funding or the balance 4 is left as is?
“two foreign bidders have been down selected”
“preferably wants the work to be done locally”
Basically this tender is moot in that it doesnt matter whether the winner is foreign or not, it still has to be done locally and the only way for foreign companies to do that is by partnering with locals, so in the end still comes back to a local company the real winner.
“MKM, F/A-18D are being done locally”
Being forced to by circumstances rather than by choice. MKM due to Russian sanction so thats obvious but then we didnt do engine SLEP either so its doubtful if we could really manage a real full SLEP. The Hornet SLEP came around during Covid & MCO lockdowns and then international travel restrictions was then still enforced. So even if it were unprecedented for our Western jets we pushed thru successfully to get it certified done in Msia. Still its not ideal as the work is dead slow entailing roughly 1 plane per year which is unacceptable as were only expecting to use for another 10 more years so the 8th jet upgrade will only have a service life of 2 years? Totally unacceptable.
If we did at established OEM overhauler (as we intended in Aussie or Boeing), its expected to have much faster turnaround time meaning we will have more mileage clocked on these upgraded planes. So by going local are we actually getting our value for moneys worth? TUDM chief will need to answer that if insist to do it all locally. I just hope he has a good reason and not just parroting the bureaucratic & political spiel of his paymasters.
“work to be done locally to reduce costs ..provide the opportunity for transfer of technology”
This is what I call bullshit logic. As usual thats the reason we push but in reality cost for TOT is actually higher and questionable gains of skills. This unlike SG defence industry that are fully aware that TOT & going local is way more than buying off the shelf but they still pursue this goal and budget sufficiently higher to ensure all their projects is success. Just compare their Formidables vs our LCS.
We have 15 actually, it is the amount of the budget under RMK12. The rest – the plan for now – is to be done after the six is completed.
” We have 15 actually ”
5x of around 1976 vintage (1 crashed, originally 6)
FM2401 – M30-01
FM2402 – M30-02
FM2403 – M30-03 – crashed Aug 1990 (sibu)
FM2404 – M30-04
FM2405 – M30-05
FM2406 – M30-06
3x of around 1980 vintage
FM2451 – M30-07
FM2452 – M30-08
FM2453 – M30-09
1x of around 1990 vintage
M30-10
5x of around 1995 vintage
M30-11
M30-12
M30-14
M30-15
M30-16
(ps. no M30-13 for unknown reasons)
Total of 14 current airframes
https://pbs.twimg.com/media/GV4mmuZbQAAsgHV?format=jpg&name=4096×4096
@joe if they do locally they avoid other costs like manhours, facility or logistics. all the foreign contractor has to do is send tools and provide training. the locals that do it not necessarily a private company, could be puspeka too for whatever reason
@SY
Bullshit. If we dont have similar facility, manpower, & expertise, we have to pay all those plus the extra cost for their willingness to TOT it here. Hiring extra manpower and spending the manhours to train and work them, what happens after the project? All wasted and these arent going to be cheap either if your asking for specific skills & knowhow.
Facilities also if its not matched to OEM requirement, we have to pay to upgrade it just for that project (see the BNS yard upgrade just for LCS). Those arent free.
Also they have to ship everything from their facilities to here. these cost isnt cheap either.
The beancounters have been using your logic to justify doing it locally but in truth the cost is higher and if the Govt tries to force a lower budget to reflect this idealism it ends up with underfunded doomed project like LCS & OPV. I rather we spend a lil extra money and get it done successfully at OEM factories.
Think about it, we arent doing anything far unique. Its basically CKD what the OEM is offering or at best reinventing the wheel with trying to shoehorn limited localised parts. There isnt any cost optimisation on OEM part and they will charge us for that.
We are not turkeye though. We are not at a constant threat of embargoes. So why would we bothered with localization of parts?
We are also not ID. Again not at risk of embargoes and has no real desire for any TOT.
If anything we probably only have a desire for MRO, simply because we have limited number of everything and sending things to perform MRO is expensive logically while having a long leads time of unavailability. which means the military won’t be able to operate at a high tempo if needed.