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INTERNATIONAL PROCUREMENT OPPORTUNITIES

October 31, 2014 by

29 Oct 14. Canadian future Arctic patrol fleet numbers at risk. Canada’s plans to revitalise its Arctic naval presence have come under fire from the country’s Parliamentary Budget Office (PBO). According to the Budget Analysis for the Acquisition of a Class of Arctic/Offshore Patrol Ships (A/OPS) report released on 28 October, government plans to deliver six to eight ice-capable Arctic offshore patrol vessels as part of the National Shipbuilding Procurement Strategy (NSPS) risk going over budget and being delayed. The PBO report concluded that current budget and time restrictions limit the government to confidently supporting the construction of only four vessels. A delay of one year or more to procurement would likely mean the budget would only cover three ships. (Source: IHS Jane’s)

29 Oct 14. Lebanese FAC contract yet to be finalised. Negotiations to supply Lebanon with three fast attack craft (FACs) are continuing, the French shipbuilder CMN told IHS Jane’s at Euronaval 2014. Lebanon is negotiating to acquire a new variant of CMN’s venerable Combattante series of missile-armed FACs, dubbed the FS 56, as part of a USD3bn package of French military equipment that Saudi Arabia is financing. IHS Jane’s revealed in August that the FS 56 was on the list of equipment that had been agreed by the Lebanese military and France. The boats destined for the Lebanese Navy could be equipped with an enclosed-mast system that reduces its radar cross section. However, the final mast and sensor configuration remains to be confirmed. The baseline armament configuration is currently expected to include an Oto Melara 76 mm gun mounted forward, up to eight Exocet anti-ship missiles, and Mistral short-range air-defence missiles fired from two Simbad RC launchers aft, although a 40 mm gun remains an option in this position. (Source: IHS Jane’s)

30 Oct 14. US helicopter producer Sikorsky Aircraft Corporation has decided to pull out of the bidding for a $3bn contract to supply helicopters to the Polish military, the company said on Thursday in a statement. Sikorsky, a unit of United Technologies, was competing with Airbus Group of France and AugustaWestland, owned by Italy’s Finmeccanica for a deal to supply 70 machines. Sikorsky said it pulled out, together with Polish company PZL Mielec, its consortium partner, because it would have been impossible for them to deliver their Black Hawk helicopters according to the tender requirements. The Polish Defence Ministry said in a statement it sees Sikorsky’s withdrawal as a negotiation tactic, an allegation the U.S. firm denied. The ministry said it did not plan to change the requirements of the tender. (Source: Reuters)

25 Oct 14. India Launches Drive To Buy Half of Its Weapons From Indigenous Sources. Under a new policy, at least half of India’s total weapon and equipment needs in the next 10 to 12 years ‘worth more than $100bn’ could be produced domestically. Analysts and military officers are divided about the wisdom of relying so heavily on the local defense industry to meet the military’s needs quickly and effectively. The new approach, announced this month, is based on a countrywide ‘Make in India’ campaign launched by Prime Minister Narendra Modi to boost the domestic industry, a source in the Defence Ministry said. Under the new policy, the categories of Make India and Buy and Make India will be used for about half the weapon purchases. Under these categories, tenders will go only to domestic industry. “The new policy will be one step forward and two steps backwards as the domestic defense industry is not mature enough to meet such big orders for weaponry and equipment, and depending on it will only result in further delays in acquiring weapons for our defense forces,” said Nitin Mehta, a defense analyst here. “How can a defense industry which exports weapons worth only $100m a year suddenly balloon to manufacture weapons and equipment worth nearly $100bn in the next 10 years?” A senior

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