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Turkey Seeks New Extension in Air Defense Contract (Dec 21,2014)

"We have requested a new extension from the second and third best bidders," Turkey's Minister of Defense Ismet Yilmaz said. "We have asked them to agree on a new extension of the deadline."

ANKARA — Turkey has urged bidders in a multibillion dollar contract for the construction of its first long-range air and anti-missile defense system to agree on a sixth extension of the deadline to renew offers, Turkish Defense Minister Ismet Yilmaz said Dec. 21.

"We have requested a new extension from the second and third best bidders," Yilmaz told reporters. "We have asked them to agree on a new extension of the deadline."

In September 2013 Turkey selected China Precision Machinery Import Export Corp (CPMIEC) to build its air defense system and contract negotiations with this company have been ongoing since then. CPMIEC offered a $3.44 billion solution.

But talks with CPMIEC, under increasing pressure from Turkey's western allies that a Chinese-made system could not be made interoperable with NATO assets, have staggered since then.

Turkey this summer opened parallel talks with the second-comer, the European consortium Eurosam, maker of the Aster-30. A consortium of Raytheon and Lockheed Martin, maker of the Patriot system, came third after Eurosam.

Minister Yilmaz's remarks meant that the Turkish government asked Eurosam and Raytheon/Lockheed Martin to agree to a sixth extension. Since September 2013, Turkey extended the deadline for these two companies to renew their proposals five times. The latest deadline was Dec. 31.

"We keep on talking to the Chinese company," Yilmaz said. "After we extend the deadline once again, the contract will be negotiated at the January meeting of the Defense Industry Executive Committee." The Committee, chaired by Prime Minister Ahmet Davutoglu, is the ultimate decision maker in major procurement programs.

Yilmaz listed Turkey's priorities in the air defense program (by ranking) as: 1- Technology transfer, 2- Co-production that ensures technology, 3- Quickest delivery, and 4- "Reasonable" price.

The Turkish program, T-LORAMIDS, consists of radar, launcher and interceptor missiles. It has been designed to counter enemy aircraft and missiles. Turkey has no long-range air defense systems.

About half of Turkey's network-based air defense picture has been paid for by NATO. The country is part of NATO's Air Defense Ground Environment. Without NATO's consent, it will be impossible for Turkey to make the planned Chinese system operable with these assets, some analysts say.

NATO and US officials have said any Chinese-built system could not be integrated with Turkey's joint air defense assets with NATO and the United States. They also have warned that any Turkish company that acts as local sub-contractor in the program would face serious US sanctions because CPMIEC has been sanctioned under the Iran, North Korea and Syria Nonproliferation Act.

Turkey Seeks New Extension in Air Defense Contract
 

"We keep on talking to the Chinese company," Yilmaz said. "After we extend the deadline once again, the contract will be negotiated at the January meeting of the Defense Industry Executive Committee." The Committee, chaired by Prime Minister Ahmet Davutoglu, is the ultimate decision maker in major procurement programs.


how many time are we going to extend the tender?
 
Turkey Won't Rush Air Defense Contract
By Burak Ege Bekdil4:05 p.m. EST January 15, 2015
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ANKARA — Turkish government leaders are refraining from making a hasty "final-final" decision on a multibillion dollar contract that will build the country's first long-range air and anti-missile defense architecture.

"There are political, technical and financial parameters at play, and we don't want to make a wrong move," one senior procurement official said.

After a crucial meeting of Turkey's top procurement panel, the Defense Industry Executive Committee, Prime Minister Ahmet Davutoglu said Turkey would continue to negotiate with all three bidders in the disputed program.

In September 2013, Turkey selected China Precision Machinery Import-Export Corp. (CPMIEC) for a $3.44 billion offer. But after increased pressure from NATO allies, Ankara opened parallel talks with the second- and third-comers in the bidding — the European Eurosam, maker of the Aster 30, and the US Raytheon/Lockheed Martin, offering the Patriot system, respectively. Davutoglu said talks with all three bidders would cover an extended period of six months.

"One imminent political deliberation is whether the US Congress will recognize the alleged Armenian genocide in April. We will wait Congress' move before making a decision on the contract," said a top government official for defense and security issues.

The US Congress may, for the first time, recognize as genocide the killings of 1.5 million Armenians during Ottoman Turkey in 1915-1920. April will be the centenary of the start of incidents that Armenians and several parliaments across the world have said was genocide, but the US has so far avoided to label them as such.

"Apparently, the Turks want to use the air defense contract as one of their many cards in the game [to pressure Washington not to recognize the genocide]. It may or may not work. But the success of the US contender depends first of all on this," said one London-based Turkey specialist.

The procurement official did not comment directly on whether Congress' decision would be a parameter in selecting a winner in the contract, or whether the US contender would be blacklisted for political reasons. But he said: "Our procurement decisions are not free of deliberations on foreign policy."

Both the procurement and defense officials said that although all three bidders are in the picture, they admitted that talks with CPMIEC have not been productive.

"I cannot say negotiations with the Chinese contender have evolved as we expected," the procurement official said.

The defense official said: "[CPMIEC is] still in the game. But they don't stand where they stood when we selected them. We expect all bidders to improve their offers in line with four criteria: better technological know-how, local participation, quick delivery and price."

Turkish procurement officials earlier admitted that technical negotiations with CPMIEC had dragged into several problematic areas and "this option now looks much less attractive than it did [in 2013]."

In September, for a fifth time, Turkey extended the deadline for all three bidders to Dec. 31. The Jan. 7 decision to extend the deadline for another six months is the sixth extension.

The Turkish program consists of radar, launcher and interceptor missiles. It has been designed to counter enemy aircraft and missiles. Turkey has no long-range air defense systems.

About half of Turkey's network-based air defense picture has been paid for by NATO. The country is part of NATO's Air Defense Ground Environment. Without NATO's consent, it will be impossible for Turkey to make the planned Chinese system operable with these assets, some analysts say.

NATO and US officials have said any Chinese-built system could not be integrated with Turkey's joint air defense assets with NATO and the United States. They also have warned that any Turkish company that acts as local sub-contractor in the program would face serious US sanctions because CPMIEC has been sanctioned under the Iran, North Korea and Syria Nonproliferation Act.

Email: bbekdil@defensenews.com.
 

May is the latest extended deadline, so, we'll see what happen from then on..
 
Correction for yesterday's news by SSM...

Uzun Menzilli Bölge Hava ve Füze Savunma Sistemi Projesi Açıklaması – MSI Dergisi

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Turkey says it may buy Chinese missiles; will not integrate system with NATO
REUTERS

Ankara

Turkey’s defense minister said Thursday the country does not plan to integrate a new missile defense system with NATO infrastructure and officials said a $3.4 billion deal with China was still under consideration.

NATO member Turkey chose China Precision Machinery Import and Export Corp. as a preferred bidder in 2013, prompting U.S. and Western concern about security and the compatibility of the weaponry with NATO systems.

Defense Minister Ismet Yilmaz, in a written response to a parliamentary question, indicated Ankara planned to go ahead with the Chinese system, saying the evaluation of bids had been completed and no new offers received.



“The system in question will be integrated with the national system for Turkey’s defense and will be used without integrating with NATO,” Yilmaz said.


However, other government officials later made clear that did not mean a final decision had yet been reached.

“We are continuing discussions with all the bidders,” the Undersecretariat for Defense Industries said in a statement.

U.S. and NATO officials are unhappy with Turkey’s choice of the China Precision Machinery, which has been under U.S. sanctions for selling items to Iran, Syria or North Korea that are banned under U.S. laws to curb the proliferation of weapons of mass destruction.

Eurosam, which is owned by Franco-Italian missile maker MBDA and France’s Thales, came second in the tender. U.S.-listed Raytheon Co. also put in an offer.
 
Aselsan - Roketsan Indigenous System

This is expected to last about 7 years at least.. It does not seem to be a very optional possibility for the urgent needs of the national security.

We can, and will, adapt our own indie system anytime anyway..
 
This is expected to last about 7 years at least.. It does not seem to be a very optional possibility for the urgent needs of the national security.
Eurosam's offer is also 7 years.

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How many years did they delayed the project? Indeed delayed you had to started the project hou have might now see some results:-). Now bs anymore and go for the china....
 
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