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i think MMRCA deal is off....
Folks, as a part of my job, we closed a large Industrial equipment contract in December 2011. It was worth couple of hundred million dollars. The paperwork for that contract was 3 boxes which filled up the trunk of a family station wagon, addendums were the same amount of extra paperwork and took us (a complete organization) 3-4 months of document preparation, screening by customer and pre-negotiations work...
Cut to MMRCA, this is a deal worth $15-20Billion, involves offset contracts, gazillions of moving parts - both in the machines and the contracts, bazillions of spare part contracts, training contracts, detailed metrics to standardize the quotes to a common ground etc etc etc... Given that it has just been a quarter since the bids have opened up... it will take time...
Point is... when MOD said that they will finalize the contract in a few weeks, there is no way that they ór anyone else could have been sure of the 'exact' period it will take, it was the best 'guess' that they could have given... IMHO, delay of a few weeks or months is not a big deal... Let's not loose sleep over it (talking to myself here)
i think MMRCA deal is off....
MRCA wont to be considered if it cant be kept with limit of $12.6bn for 126 aircrafts including building infrastructure, with fully loaded with missiles also. If IAF is getting 42 upgraded SU30MKIs for $4.1bn, with stealth features/ powerful AESA radar with loaded with Brahmos missiles also, then IAF wont pay more than $100mil for a similar type aircrafts like Rafale or EFT.
You are for Mig 35, upgraded MKI, LCA MK1 and 2, which all doesn't exist today and still call Rafale a paper Tiger?While Rafale is still a Paper Tiger
MoD knew the cost of the fighters before they shortlisted the most expensive fighters in the competitions,
MMRCA by third week of Jan
By SP's Special Correspondent
MMRCA January 02, 2012: The mother of all Indian deals, the medium multirole combat aircraft (MMRCA) competition is likely to see a winner announced in the third week of January 2012. After commercial bids were opened on November 4, the Air Force and MoD created a specialised three-layered team to squeeze a winner out of the final round of comparisons between Dassault's Rafale and the Eurofighter Typhoon. There was a spot of doubt last week over the notion of extension of commercial bids, since their validity expired on December 31. However, the MoD clarified that once the bids were opened, there was no provision for extension, and therefore there was no cause for concern.
An IAF source suggested that the vendors were unlikely to flag this as an issue at such a crucial time since neither would be wanting to "rock the boat" too much. Also, the fact that both contenders are European (and therefore are subject to near identical currency fluctuations), the playing field is level. Currently, the committee poring over the hundreds of sheets in the commercial bids are converting currencies and formulating a table where parameters are comparable.
The financial parameters required the MoD and IAF have been submitted in eight separate categories, M1 to M8. These include unit flyaway cost (the first 18 aircraft will be bought straight from the manufacturer), lifecycle cost, operational cost, lifecycle cost of spares, aggregates and fuel usage, cost of overhaul, cost of mid-life upgrade, cost of transfer of technology and M8, the final tally of all costs involved -- the final figure that will be compared to declare a winner.
[So no canceling of the competition and a final decision might be already done, also another confirmation that the L1 means cheapest total cost, not cheapest unit cost!
you still forget to consider the banchmark price..
you still forget to consider the banchmark price..
Yes and MoD forgot about it too right? Again, they new the how expensive the fighters are before they shortlisted them, they only didn't knew how far the vendors compromised on it in the bids. If MoD had any doubt about them not fitting into the budget they / the government has in mind, they could have shortlisted a 3rd cheaper fighter too, which had given them all options. That's one reason I did expected the F18SH to be shortlisted too, but the fact is that they didn't and choose only Rafale and EF. That means, they expect at least one of them to fulfill their budget requirements and since the comercial bids seems not to be extended anymore, everything hints on a decision soon.
Yes and MoD forgot about it too right? Again, they new the how expensive the fighters are before they shortlisted them, they only didn't knew how far the vendors compromised on it in the bids. If MoD had any doubt about them not fitting into the budget they / the government has in mind, they could have shortlisted a 3rd cheaper fighter too, which had given them all options. That's one reason I did expected the F18SH to be shortlisted too, but the fact is that they didn't and choose only Rafale and EF. That means, they expect at least one of them to fulfill their budget requirements and since the comercial bids seems not to be extended anymore, everything hints on a decision soon.
you still forget to consider the banchmark price..
off late but i am sure the IAF/MoD had realize that there is no use to put money into a new platform at this stage...
1) both EF and rafale are more expensive then the MKI ..
2) MKI had a proven record and most leathal and trusted in IAF..
3) HAL has spend billions on biulding the infrastructure to build MKI in india , why would there be a need to spand more money again for MMRCA..
4)with LCA , FGFA amd MCA on card , why would HAL be spanding money on MMRCA , there can't be unlimited funds available with them..
5) to my understanding MoD will buy more MKIs to fill the gap and IAF will just focus more no FGFA ....
anyway , the no-news on MMRCA as the bid expired on 31dec clearly means that MMRCA is cancalled...
people will still argue about the expirey of bids suggesting that bids are valid even after 31dec coz they are opened...but they need to realize the company law which stats that " commercial bids are only vaild till the expiry date and if the contrect is not signed till that date , the bids gets void "
so , as per law , coz the bidders are not asked to extend/renew the bidds , thay stand void as of now...