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Is Seoul Underestimating its Fighter Procurement Costs?

Is Seoul Underestimating its Fighter Procurement Costs?

While the South Korean F-X Phase 3 program is out for grabs for about two weeks, Boeing, Lockheed Martin and EADS are not rushing to take this opportunity at the lowest cost.

According to Seoul’s news agency Yonhap, Seoul has extended bidding on the $7.3 billion fighter jet project after a second round of bidding ended Friday 28th 2013 with all three bidders offerings coming above the estimated cost. “The bidding ended, and an additional bidding will resume on July 2,” said Baek Yoon-hyeong, spokesman for the defence acquisition agency (DAPA) quoter by Reuters.

Seoul opened the bidding two weeks ago, for a requirement for 60 fighter aircraft to be delivered over a period of four years beginning in 2017. Although the agency has conducted 30 bidding sessions, all offerors submitted proposals over the target budget. Three competitors are running for this opportunity – Lockheed Martin Corporation offering the F-35A, Boeing offering the stealthy variant of the Slam Eagle dubbed F-15SE and EADS’ offering Eurofighter Typhoon.


Source: defense-update.com News - 1 July 2013

Photo: The South Korean Air Force F-15K Slam Eagles (Photo by weapons.technology.youngester.com)




(7/1/2013)


 
T-37C (Black Eagles)
ROK Navy Super Lynx Mk.99
ROKAF BAE H.S.125-800XP
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