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MPAC (Batch 4) Combat System and Capability Upgrade Project of the Philippine Navy

The MPAC (Batch 4) Combat Systems and Capability Upgrade Project of the Philippine Navy involves the acquisition of two separate items for the MPAC (Batch 4) acquisition project that was tendered separately and won by Propmech Corporation - Lung Teh Shipbuilding Co. Ltd.

The PN's MPAC Weapon Systems as shown installed on the MPAC Mk. III. Photo c/o 

Project Overview:

Lot 1 covers the Weapon System, which will be installed on the MPAC Batch 4 once the boats are accepted by the Philippine Navy with an ABC of Php662 million;

Lot 2 covers the Mission Essentials Equipment and Integrated Logistics Support (ILS) for the MPAC (Batch 4) boats, with an ABC of Php60 million.

As of 2018, only the Lot 2 is ready for tendering with documents made available by the Department of National Defense (DND). Meanwhile Lot 1 is still reserved and undergoing pre-procurement development phase with the Philippine Navy's Technical Working Group (PN TWG) for the said project.

Based on the Technical Specifications for Lot 2, it involves several items that appears to be not included in the MPAC (Batch 4) acquisition project. This includes:

* Installation of the weapon systems (Rafael Typhoon MLS-ER launcher, Mini Typhoon 12.7mm Machine Gun System, and ISTEC Swing Arms for the two M60 7.62mm general purpose machine guns), 

* Supply and installation of radio communications systems,  
* Supply and installation of NIJ Level 3 Ballistic Protection on certain parts of the boats, 
* Supply and installation of jump seats for passengers
* Integrated Logistics Package.

The same technical specifications also confirmed that the Philippine Navy is again after the acquisition of the Rafael Spike-ER short range surface-to-surface missile, Typhoon MLS-ER missile launchers, and the Mini Typhoon 12.7mm MGS. These can only happen through a Government-to-Government (G2G) transaction between the Philippines and Israeli defense departments, the same way the weapon systems for the MPAC Batch 3 were acquired.

U P D A T E S:

31 May 2018:

The Department of Budget and Management (DBM) released a new SARO, with reference no. SARO-BMB-D-18-0012925 dated 31 May 2018 worth Php722,000.000.00 covered the MPAC (Batch 4) Combat Systems and Capability Upgrade.

The budget fits the description MaxDefense received on the budget allocation for both Lots 1 and 2, with Php662,000,000.00 going to Lot 1 for Weapon Systems, and Php60,000,000.00 allocated to Lot 2 for the Mission Essentials Equipment and ILS.


19 July 2018:

The deadline for bid submission, and bid opening for the Lot 2: Mission Essentials Equipment and ILS acquisition project proceeded on 19 July 2018 as scheduled.

Only Propmech Corporation submitted a bid for the project, wherein they submitted their offer worth worth Php59,991,888.00, which is a little over Php8,000.00 lower than the ABC.

Propmech will undergo the Post Qualification Inspection (PQI) as the next step, and would need to pass to avoid the tender from failing and a rebidding to happen.


30 August 2018:

MaxDefense received confirmation that Propmech Corporation was declared the Single Calculated Responsive Bidder for the Lot 2 acquisition project tender. This is after Propmech passed the Post Qualification Inspection (PQI) made by the PN TWG and DND BAC.

A Notice of Award (NOA) is expected to be released soon, as this is a priority project considering the boats are already under construction and could be available for delivery by 2019. Preparation is needed for Propmech Corp. to be able to order the needed equipment and provide enough lead time for the delivery to be made.


11 September 2018:

As expected, the DND has indeed released the Notice of Award (NOA) in a very short time (less than 3).

Contract signing is expected to happen either within September or October 2018, in line with fast-tracking the project to meet and match the delivery date of the MPAC Batch 4 by 2019.
Notice of Award released in favor of Propmech Corporation dated 11 September 2018.
Photo taken from DND's website.


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