SHAH ALAM: ISS contract for Cougars extended. The In-Service Support (ISS) contract for the RMAF 12 Airbus EC725 helicopters have been extended for another three years. The ISS contract had been awarded to a Boustead Heavy Industries Corporation Bhd (BHIC) subsidiary company, BHIC Aeroservices Sdn Bhd, since 2014.
BHIC announcement.
We refer to the announcements made on 21 March 2014 and 21 July 2017 on the receipt of a Letter of Award (“LOA”) by BHIC AeroServices Sdn Bhd (“BHICAS”) from the Ministry of Defence Malaysia (“MOD”) in relation to the provision of maintenance and supply of spares for the Royal Malaysian Air Force EC725 Helicopters via In-Service Support (“the ISS Contract”).
BHICAS is a joint venture between BHIC Defence Technologies Sdn Bhd (51 percent), Prestige Pillar Sdn Bhd (30 percent) and Airbus Helicopters Malaysia Sdn Bhd (19 percent).
The Company wishes to announce that BHICAS has accepted a letter dated 12 August 2020 from MOD for the extension of the ISS Contract for another three (3) years, effective from 1 April 2020 (“the Extended LOA”) with an additional ceiling contract value of RM113.2 million. The new total ceiling contract value is RM548.2 million only.
Apart from the extension of the Contract period and revision of Contract value, there are no significant differences between the substance of the Contract and the Extended LOA.
The Extended LOA will contribute positively to the earnings of BHIC Group for the financial year ending 31 December 2020 to 31 December 2023.
None of the directors or substantial shareholders of the Company, or persons connected with them have any interest, direct or indirect, in the Extended LOA.
This announcement is dated 1 September 2020
Like most of RMAF maintenance contract, the ISS contract was directly negotiated with BHIC Aeroservices as it had partnered with Airbus Helicopters, the OEM of the EC725. For the record, RMAF currently operates 12 EC725, operated by two squadrons, No 10 at the Kuantan airbase with six airframes while the No 5 Skuadron in Labuan airbase has four.
The EC725, designated as H225M by Airbus Helicopters, are the only operational helicopters in RMAF currently. The Nuri has been grounded since early last year.
— Malaysian Defence
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View Comments (60)
Should have buy Additional H225M in the Future Soon
Is this contract extension a way to bypass the now mandatory open tendering process, since in view that the original contract timeline would have passed?
If Airbus chooses to work with another partner that could offer TUDM better pricing or service, or directly open their servicing hub here, this kind of non-negotiation closed contracts is not open nor transparent.
Once a contract term ends, it should be put up for tender again. Can these contracts even continuously be extended indefinitely?
Reply
Yes to all the questions
Boustead,
Just give the 5x MHS EC225LP to TUDM. Rather than the asset idling and not making any money, at least you will profit from a bigger ISS contract.
You got so many "national interest" contracts, its your turn to give something back to the nation, those EC225LP have zero value in the commercial aviation sector anyway.
@...
So you're suggestion Boustead to 'donate' a few million RMs of choppers in expectation for a few billions RMs in bailout by taxpayers money? Sounds like yet another of M's hairbrained scheme (ie Perwaja, MAS, MISC, Proton, etc). Has these ever been fair to the taxpayers?
Off topic
Some progress pictures of KF-X
http://pbs.twimg.com/media/Eg9Qqs4UMAAToGV.jpg
http://pbs.twimg.com/media/Eg9QpweVkAAXhp9.jpg
http://pbs.twimg.com/media/Eg9QpW5U0AA1gKX.jpg
http://pbs.twimg.com/media/Eg9QqRxUwAAdQ41.jpg
@ joe
what i meant is that they (even without donating the ec225lp) have been getting so many contracts from the government, including this latest ISS for EC725.
so now it is only fair for them to give something back, by donating the ec225lp
Get additional Cougar or Blackhawk for air force n army..
@...
Come on lah. In this reality giving something means expecting something back. If Government will ask them for some donation, they will be beholden to return the favour and likely at much more that what was donated. Moreso when its dealing with private/semi-private entities. Cronyism 101. Even if Government are interested to acquire their choppers, it must be via open nego with no favours given, no favours asked.
We spend so much time here complaining about how rotten things are today and here you are suggest on adding to that.
@fadiman
The EC725/H225M has an unsettling rate of accidents caused by parts design failures. The Blackhawk is a proven more mature and better supported chopper platform in the current and foreseeable future. FYI for medium utility roles, all 3 branches of ATM only need civvie spec S-70i at mere USD13-15million each right off the production line. A steal considering EC725 cost USD20million with far less user base and support. If all of them, for their various requirements, could transition to Blackhawk (as the US Armed Forces did), it would simplify procurement, spares, servicing, upgrading, operations, training, cross functional usage.
boustead is 100% owned by LTAT.
so how do you do national interest projects?
In indonesia anything flying will always go to PTDI. Anything small arms and tanks will go to PT PINDAD. Ships will always be built by PT PAL.
In korea anything flying will always go to KAI. Ships will always be built by both Daewoo and Hyundai. Does korea do open tender for KF-X or Frigates?