Friday, August 22, 2014

Progressive payment scheme eyed for P18-billion frigate program

From the Business Mirror (Aug 22): Progressive payment scheme eyed for P18-billion frigate program

The government is looking at the possibility of using the so-called progressive payment scheme for the Department of National Defense’s (DND) P18-billion frigate program.

This was confirmed by Commodore Roland Mercado, Navy technical working group head, in a text message to the Philippines News Agency.

“The issue that has to be resolved is the progressive payment scheme because this will affect proponents’ financial proposals,” he said.

Mercado also stressed that the GPPB or Government Procurement Policy Board must also give its go-ahead for this setup to speed up the frigate program.

Sources earlier said that the DND is looking at the possibility of making eight payments for the two ships, which will give the Navy a much-needed boost in surveillance and firepower capability.

This can be broken down into the following:

15 percent during the awarding of the contract.

15 percent for the finalization of the contract.

10 percent for the laying of the keel of the ships.

10 percent for the construction of the vessel.

15 percent for installation of engines, weapons, communications, sensor systems, and auxiliary machinery.

15 percent during the acceptance trials.

10 percent during the delivery of the frigates to the Philippines.

10 percent for the completion of the warranty period.

Building of the two ships is expected to be completed within two years.

Technical specifications of the DND’s P18-billion frigate program include a capability to conduct air-to-air warfare, anti-surface warfare, antisubmarine warfare, and electronic warfare.

Aside from this, these naval vessels should be able to do extended maritime patrol with an embarked helicopter and operating up to Sea State 6.

It must also have a range of 4,500 nautical miles at 15 knots, endurance of 30 days in tropical condition, and capable of running up to 25 knots of continuous speed.

Navigation equipment of the two ships, at a minimum, must consist of two navigation radars; GPS, depth sounding set, and vessel tracking system compatible to PN’s existing system.

The frigates’ weapon system, at a minimum, should consist of a 76-mili-meter gun; stabilized secondary gun; four .50-caliber machine guns; surface-to-surface missile launchers; surface-to-air missile launching system; and anti-submarine torpedoes.

Earlier, two more foreign shipbuilders have joined the Navy’s P18-billion frigate program. These are Garden Reach Shipbuilders & Engineers Ltd. of India and STX France SA.

They were allowed to join in the bidding after their motions for reconsideration were considered by the DND’s Special Bidding Awards Committee.

They were earlier excluded from the project due to deficiencies in documentary requirements.

These companies now join Navantia Sepi (RTR Ventures) of Spain and South Korean firms STX Offshore & Shipbuilding, Daewoo Shipbuilding & Marine Engineering Co. Ltd. and Hyundai Heavy Industries Inc. who have passed the first stage of the bidding.

http://www.businessmirror.com.ph/index.php/en/news/nation/37550-progressive-payment-scheme-eyed-for-p18-billion-frigate-program

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