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Commercial tenders for 16 Navy multi-role choppers expire

N C Bipindra New Delhi, Sept 2 (PTI) Two years after Navy issued tenders for purchase of 16 multi-role helicopters worth USD one billion, a deal is not in the pipeline since bids from two competing global manufacturers have expired. Defence Ministry sources told PTI today that the commercial bids from American Sikorsky and British-Italian AgustaWestland expired last month and the Ministry was considering asking them to revalidate their existing offers or revise their prices. "Yes, the commercial tenders for the MRH from the two companies have expired and we now intend to ask them to revalidate or revise their offers," the sources said. The Navy's tenders (Request for Proposals or RFP in defence parlance) was issued in August 2008 and the two firms responded to the bids, while another European manufacturer did not submit its offers. The commercial bids were valid for 18 months. Industry sources said the two firms would respond to the Defence Ministry's request for revalidation or revision of their bids, if asked to. Sources said the Navy was yet to carry out the Flight Evaluation Trials for the two contenders -- Sikorsky's S-70B SeaHawk and AgustaWestland's NH90 -- for the contract, though technical evaluations were completed. The Navy urgently needs the MRH to replace its aging SeaKing fleet inducted in 1970. It had 40-odd SeaKing choppers in its air wing, but the numbers have come down to about 30 helicopters due to mishaps. The MRH's primary role would be anti-submarine warfare and anti-surface warfare, while its secondary role would include search and rescue, cargo carrying and casualty evacuation. The RFP for the 16 MRH was initially issued in early 2006, but the tenders were cancelled two years later and reissued in September 2008. Two years have since elapsed, yet little progress has been made on the procurement, Defence Ministry sources admitted. India also has another option to equip its Navy with MRH, as the American Department of Defense has offered US Navy's workhorse MH-60R -- a Sikorsky platform with American systems and sensors -- through the Foreign Military Sales route. Once the contract is decided and awarded, the Indian Navy would get delivery of the MRH within 46 months in three phases. The RFP provides an option of placing follow-on orders for another 44 helicopters, once the present contract is completed and mandates an offset clause under which the successful bidder would reinvest 30 per cent of the contract amount back in Indian defence industry.