The main focus of Indian Defence Updates is to curate news for the domestic audience, however
attempts are also made to present important global defense news of geopolitical importance.
Time to Scrap Lowest Bidder concept of Defence Procurement? | GE-F414 vs EJ-200
What has been stated
publicly and has been said for years, in private, in the defense establishment,
on rethink of the L1 concept in defense procurement under which contracts are
awarded only to the lowest bidder. Army chief Gen MM Naravane recently called
for changes in the system and said that the L1 rider also means India is denied
the chance of acquiring more capable systems than a Request for Proposal originally
aims for. Such systems cannot be bought because their costs are higher than
what the Services seek. The requirements are formulated years before the
systems actually start coming in and, at times, the technology jumps manyfold,
especially when it concerns electronic warfare.
Not so long ago when India’s
Aeronautical Development Agency had floated tenders for a new high thrust
engine to power its then proposed Tejas Mk2 aircraft. American multinational giant
General Electric offered its GE F-414 engines and the EuroJet Turbo consortium
offered its Eurojet EJ-200 engine. Then IAF had wanted to go for Eurojet EJ-200
engine due to the previous American regime’s sanction on the LCA Tejas program
that saw GE being prevented from supplying spares and components for the F-404
engines that were powering Tejas Mk1 Prototypes and also due to strategic
calculations that had favoured European engines for the Tejas Mk2 program.
When Aeronautical Development
Agency opened bids, GE was declared L1 and it is said that EuroJet Turbo offer
was marginally higher but it had agreed to match General Electric’s price if
given a chance. But the strict tender requirements could have meant that it had
to be retendered and bids invited again which Aeronautical Development Agency
was not in favour of and soon contract was awarded to the GE.
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India’s Aeronautical
Development Agency had selected 99 F-414 GE fighter jet engines to power the Mk2
version of the Tejas Light Combat Aircraft for the Indian Air Force way back in
2010 while Tejas Mk2 program evolved from being just a re-engineering program
to Medium class fighter jets, no efforts were made to go back and buy Eurojet
EJ-200 engines for the program.
The US has yet again warned
India that it could face sanctions over it acquiring five batteries of the
Russian Almaz Antei S400 Triumf systems and if the supply of F-414 GE INS6
engines are delayed or stopped it will affect not only the Tejas Mk2 program
but also AMCA and TEDBF program which could delay the whole program for years
if not by decade.
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