Two Israeli defense companies have initially qualified to supply the two long-range patrol aircrafts that the Department of National Defense (DND) is acquiring for the Philippines Air Force (PAF) under the military’s ongoing modernization program.
Elbit Systems Ltd. and Elta Systems Ltd., a subsidiary of Israel Aerospace Industries, breezed through the initial phase of the day-long bidding process on Monday at Camp Aguinaldo, according to the DND’s Special Bids and Awards Committee (SBAC).
Elbit Systems and Elta Systems are both leading Israeli defense contractors, with Elbit having already bagged earlier contracts for the deliveries of three defense radars and 28 upgraded armored personnel carriers (APCs).
The radars, which would be installed in Northern Luzon and in Palawan, should help the military monitor the country’s territorial airspace, while the APCs should boost the Army’s land-based firepower and combat support operations.
The delivery of the equipment for the twin projects, which form part of the capability upgrade program of the Armed Forces of the Philippines, are expected to commence, by next year at the earliest.
During the whole day opening of bids on Monday, the two Israeli defense contractors passed the requirement for financial capability to support and provide for the two long-range patrol aircraft, whose contract price was put by the DND at P5.9 billion.
Elta Systems was even nearly disqualified in the initial stage after it submitted a 2012 financial statement, instead of 2013. But Defense Undersecretary Fernando Manalo, head of the SBAC, had approved it as the financial statement still falls within the two-year period.
Seven companies have tendered bids for what is considered as one of the big ticket projects of the Air Force.
Aside from two Israeli companies, the other firms are EADS-CASA, SAAB-Asia Pacific, L-3 Mission Integrated, Indonesia Aerospace and Lockheed Martin, an American company considered as one of the world’s biggest defense contractor.
The five firms were, however, initially disqualified due to questions over their Net Financial Contracting Capacity Computation. But Manalo said they can file a motion for reconsideration within three days.
The initially disqualified companies said they would file for a reconsideration.
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