Updates on the 155mm Towed Howitzer with Ammunition Acquisition Project (Horizon 1) for the Philippine Army and Marine Corps

On February 2015, the Philippines' Department of National Defense (DND) released a new Invitation to Bid for the 155mm Towed Howitzer with Ammunition acquisition project for the Philippine Army and Philippine Marine Corps. This is actually the 3rd attempt to bid the project after the last attempt made last year failed after Elbit Systems Land & C4I failed to pass the post-bid qualifications. This is also the 3rd time that MaxDefense released a blog regarding the project with the 1st and 2nd bid attempt can be accessed HERE and HERE, respectively.

Elbit Systems Land & C4I of Israel previously won the tender to supply the 155mm Towed Howitzer and Ammunition. But was disqualified after failing the post-bid qualifications. They are expected to join the project bidding again this time.

The contract remains the same as the previous tender attempt, which includes the supply and delivery of 12 brand new 155mm towed howitzer systems, 240 rounds of high explosive (HE) cartridge, and an integrated logistics support (ILS) package for the entire system. The Approved Budget for the Contract (ABC) remains at Php 438,620,000.00. The pre-bid conference was scheduled last March 5, 2015, and the bid submission and opening was originally scheduled on March 19, 2015 but was moved to March 26, 2015 as per a new supplemental bid bulletin released on March 10, 2015.

So far, MaxDefense has not determined the interested bidders for the project, although it is expected that previous interested entities will be trying their chance to bag the project. This includes Elbit Systems Land & C4I, who won the tender last year but was eliminated after failing the post-bid qualifications. 

Among the requirements released by the DND are for the product to be in use with the origin country's armed forces or by at least 2 other foreign armed forces, and that the bidders must be the manufacturer of the goods (howitzer system and ammunition). Changes in the requirement now is that the bidders should have also completed a similar project within 5 years from date of submission of bid. Previously the requirement was for 10 years, which could have been one of the reasons why the previous tender was only participated by a few bidders, and probably also the reason why Elbit did not got the project.

A supplemental bid bulletin released on March 17, 2015 made changes also on the requirements regarding the major parts of the howitzer system. Previously the requirement allowed subcontracting to a number of parts except for the barrel, breach lock, and central structure of carriage. This requirement reinforces its earlier requirement that the bidder must be the manufacturer of the goods itself. 

MaxDefense hopes that many other suppliers that did not participate in the previous bid attempts, like Hyundai WIA and it's KH-179 towed howitzer, will participate this time.
Photo taken from KDN website.

Failure of bidding for this project will enable the DND to do a negotiated bid with possible suppliers, which was the same process applied with the acquisition of UH-1 helicopters for the Philippine Air Force.

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MaxDefense will be updating its readers on this project through this blog entry and at MaxDefense @ Facebook community page. It is expected that this project's bid submission and opening schedule will not move as much as the other projects of the DND. Hopefully more bidders will be interested in this project than before.



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UPDATES:
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April 4, 2015 (morning):
The DND released a Supplemental Bid Bulletin Nr. DND-PA/PMC-155-2015-003 last March 26, 2015, wherein there were changes on the specifications regarding the outsourcing of components, which now allows for all parts EXCEPT the barrel, breech block, and central structure of carriage. It also changed the bid submission and opening schedule from March 26, 2015 to April 14, 2015.

But due to the late release of this supplemental bid bulletin, it appears that the bidders did not know of the changes and 2 interested bidders, Elbit Systems Land & C4I of Israel and local company Stone of David, were present last March 26. MaxDefense is still confirming if the claim of an anonymous reader that Stone of David made known their intention to drop out of the contest last March 26, and only Elbit Systems Land & C4I is the only firm bidder that remain in the contest. Otherwise, the bid submission and opening on April 14 appears to be final. MaxDefense will closely monitor this project as it is already in its 3rd attempt, and any failure will allow the DND to go for a negotiated bid.



April 4, 2015 (afternoon):
It was confirmed by a source that Stone of David cancelled their participation in the 155mm Towed Howitzer Acquisition Project. Stone of David's principal for the 155mm Towed Howitzer, BNT-Tvornica Masina i Hidraulike, d.d. based in Bosnia-Hercegovina, provided 2 reasons for their cancellation:

1. The specified test and acceptance procedures indicated in the project's technical specifications "are not adaptable with the National Military Standard Testing Procedure being used (by their principal), BNT-TMiH".

2. Their principal for the 155mm HE ammunitions, Israel Military Industries (IMI), cannot open their production line as the quantity required by the contract is not within the acceptable quantity.

With this, then Elbit Systems Land & C4I remains the only other bidder for the project. It remains to be seen what will be the outcome of the bid opening on April 14, 2015, as anything can still happen if documentation becomes a problem again. MaxDefense hopes that there won't be any hook-ups from now on as the losing side on these delays are the Philippine Army and Philippine Marine Corps, and the Filipino people in general.


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April 24, 2015:

This project has finally moved forward again, as the bid submission and opening proceeded last April 14, 2015. Only one proponent submitted their bid, Elbit Systems Land & C4I, as expected from our previous update due to the withdrawal of Stone of David-BNT-Tvornica Masina i Hidraulike. 


Elbit Systems was declared the single lowest calculated bidder with a bid amount of Php 410,849,184.00, with all their documents and requirements found to be complying to the tender requirements. Their offer is the Soltam M-71 39-caliber 155mm towed howitzer. According to MaxDefense sources, the budget allocated (ABC) for the project could not afford to acquire 12 units plus ammo of the Soltam Athos, which is the foremost 155mm towed howitzer product of Elbit Systems-Soltam and is more automated than the M-71.

Post bid qualifications is expected to be made soon in Israel by next month. If Elbit Systems passes the post bid qualifications, they can be awarded with the project and a contract may be signed soon.


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May 12, 2017:


Finally after several years, the first batch of 3 Soltam M-71 155mm towed howitzers were delivered to the Philippines, arriving on the last week of April 2017. MaxDefense received confirmation that the howitzers are now in Philippine Army custody and are being tested somewhere in Central Luzon. Ammunition and ILS-related parts were included in this delivery.

9 more units are for delivery in the next few months, with the Philippime Army receiving 6 units (1 battery), and the Philippine Marine Corps with 6 units (1 battery).The Philippine Army will be the first recepient of this delivery.

Despite being similar to the Soltam M-71 155mm towed howitzers already in service with the Philippine Army since 1978, the new units are provided with the following changes:

1. The Travel Lock is now located on one trail only;
2. The new guns are equipped with LED lights
3. Improvements were made on the Breech Opening Mechanism

Once the guns pass the acceptance tests, it will be formally handed over to the Philippine Army and commissioned.

MaxDefense will provide more updates once news becomes available.

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Year Ender for 2014: A Summary of Updates of Philippine Navy Acquisition Projects

MaxDefense would like to end the year 2014 with a Summary of Updates of Acquisition Projects of the Philippine Navy, which also includes major items for the Philippine Marine Corps. Most of these were previously discussed in older MaxDefense blog entries or in recent postings in the MaxDefense Facebook page. This blog entry may also serve as a guide for future monitoring of the said projects, as this would be easily accessed unlike those in the FB pages.


1. Delivery of 2 Armed AW-109 Naval Helicopters
The last two of a total of five ordered AW-109 Power naval helicopters from AgustaWestland was reportedly delivered to the Philippine Navy on December 29, 2014, and are expected to be commissioned to active duty on January 16, 2015. These two units are expected to complement the two Gregorio del Pilar-class frigates while the three unarmed versions are expected to be land based until more helicopter-capable navy ships become available.

A photo of one of the new AW-109 Power naval helicopters being tested in Italy in October 2014.
Photo copyright owned by Fabrizio Capenti - Malpensa Spotters Group, taken from Airliners.net.

These helicopters differ from the earlier three units for being armed variants, with external loading capability that could enable the helicopter to carry different weapons systems ranging from gun pods, rocket launchers, and although still officially unconfirmed, can also be fitted to carry a torpedo. There were also previous indications that the helicopters are fitted with Electronic Countermeasures (ECM) systems which the earlier three helicopters do not have.

With the PN beginning to fully understand the capabilities of the helicopters, it is expected that further orders might be fulfilled to fully replace the ageing BO-105.


2. Updates on the Strategic Sealift Vessels (aka Landing Platform Dock)
The contract to build two Strategic Sealift Vessels (SSV), which is the project name to acquire Landing Platform Docks for the Philippine Navy, has been awarded to PT PAL of Indonesia and signed mid this year. And according to PT PAL and Philippine Navy press statements, the lead ship will be started within the 1st quarter of 2015 and will be delivered to the Philippine Navy on the 2nd quarter of 2016, while the second ship will be delivered by 2nd quarter of 2017. 

The scale model above is not yet the final design, and MaxDefense confirmed through its PN sources that there are changes in the helicopter deck and hangar design.

According to MaxDefense's PN sources, the final design of the ship has already been confirmed although minor details are still being finalized. It would be a derivative of PT PAL's own Banjarmasin-class LPD for the Indonesian Navy, and will have a mount for a 76mm forward main gun, remote weapons systems in the 20 to 30mm class similar to the Mk.38 Mod.2 being procured for other PN ships, mounts for Man-Portable Air Defense System (MANPADS) in the Mistral-Simbad class, and for 50-caliber heavy machine guns. The weapons will be separately procured by the Philippine Navy and it is still being determined if these weapons can be installed fully or partially by the time the ships are delivered.

MaxDefense is expecting more news of this project within the early part of 2015.



3. Updates on the New Frigate Acquisition Project:
The Philippine Navy recently confirmed that the new frigate acquisition project is still on the move, with all six interested bidders that passed the 1st stage bidding process still up in the running. The pre-bid conference for the 2nd stage bidding is scheduled on January 8, 2015, and bidding will be held probably before the end of February 2015. The PN expects the awarding and contract signing for the frigate contract within the 1st half of 2015 as they are trying to avoid further delaying the project.

Hyundai Heavy Industries offered the HDF-300 multipurpose frigate design, which is where the ROKN's Incheon-class frigate was based.

During the ADAS 2014, HHI confirmed that they are indeed offering a design based on their HDF-3000 multipurpose frigate which the South Korean Incheon-class was derived, while Navantia is offering a design based on their Avante series. Indian and French press releases regarding their participation (Garden Reach and STX France, respectively) in the project indicated their offers will have a displacement of more than 3,000 tons displacement and a length of more than 105 meters. STX France also previously indicated that they are offering a design based on their New Generation Surveillance Frigate.

As the pre-bid conference is scheduled within a few days, MaxDefense is also expecting more news regarding this project very soon.



4. Updates on the Anti-Submarine Helicopter Acquisition Project:
With AgustaWestland named as the only bidder that complied with the requirements of the Anti-Submarine Helicopter Acquisition project's 1st stage bidding, it is expected that the project will be moving on faster as the DND and PN would only need to deal with 1 bidder. Although they have passed through the 1st stage bidding, AgustaWestland still needs to comply to the requirements set for the project.

The chances for an awarding of the contract for 2 Anti-Submarine Helicopters to AgustaWestland is now high as they are the only complying bidder. AgustaWestland is offering its new AW159 Wildcat ASW helicopter.

The PN expects the award and signing of contract for this project to be completed within the 1st half of 2015, and will be paired closely to the PN's frigate acquisition project due to capabilities that require the helicopters and frigates to work closely with each other. 



5. Updates on the Missile-Equipped Multi-Purpose Assault Craft (MPAC):
Re-bidding for this project will be initiated this coming 2015, and there are reportedly some changes in the terms of reference of the project. It is expected that the same bidders as last time will be submitting their interest for this project.

One of the PN's MPACs, delivered as part of the 2nd batch of 3 units acquired a few years ago.
The PN's current requirement is for such to have short-range anti-surface missiles and a remote weapons station.
Photo taken from Interaksyon.com.

It is expected that these MPACs will be physically larger than the two current sub-classes being used by the Philippine Navy, although it would be retaining most of its performance attributes. 



6. Commissioning of 3 Naval Tankers provided by PNOC:
Originally intended to be commissioned this year, the Philippine Navy has rescheduled the entry of 3 tankers, all still unnamed, after some reworks on the ships that will enable them to do replenishment at sea missions in support of the fleet. These are former oil tankers of the Philippine National Oil Company that were given to the Philippine Navy this year.

No exact schedule yet on when these ships will enter naval service.



7. Hand-over of a Pohang-class Corvette and LCU from South Korea:
According to previous reports from Korean media, the Republic of Korea Navy (ROKN) will decommission several ships in their fleet before the end of the year, including the Ulsan-class frigate ROKS Ulsan, a couple of Pohang-class corvettes, and several patrol killer gunboats. Among those is ROKS Gyeongju (PCC-758), which is speculated to be the ship to be handed-over to the Philippine Navy. 

The ROKS Gyeongju (PCC-758), which was reportedly the unit to be provided to the Philippine Navy.

It is expected that the deal for transfer of the ship to the PN will be similar to what the Colombians had when they got some ships from the Korean government this year. Refurbishing will be done in Korea, and will be paid for by the Philippine government, before the ship can be sent to the Philippines for commissioning. There are already preparations being made by the PN for people to be sent to Korea, although information regarding this has been tight lately.

Aside from the Pohang-class corvette, there are also reports that a retired LCU of the Mulgae-class, will also be included, which was discussed previously in a MaxDefense blog entry. No new information though regarding development on this acquisition.

An example of a Mulgae-class LCU from South Korea.

8. Possible Offers of More Korean Excess Defense Articles for the Philippine Navy:
In relation to the availability of excess Pohang and Ulsan class warships, there are strong speculations that the Korean government has been pushing hard for the Philippine Navy and Department of National Defense to choose a Korean shipbuilder to win the new frigate acquisition project, and other Korean defense manufacturers like Samsung Techwin, Samsung Thales, Hyundai Rotem, Doosan, and LIG Nex1 in other defense acquisition projects. 

ROKS Chongju (FF-961), an example of an Ulsan-class frigate from South Korea.

The offer was said to include conditional offers to transfer more Pohang-class corvettes, and probably a couple of Ulsan-class frigates. Although this is not limited to the Koreans, with other bidders reportedly having similar conditional offers as well. According to MaxDefense's PN sources, the Navy is indeed very much interested in acquiring several of the both classes as it also pushes to retire more of its ex-World War 2 assets.



9. Acquisition of 8 Amphibious Assault Vehicles:
The tender for the acquisition of 8 units of AAVs resulted to only Samsung Techwin submitting a bid, with an offer for their AAV7 armored vehicle. These vehicles will be embedded with the SSV that the PN acquired (please see #2 above).

Samsung Techwin's AAV7 is a licensed copy of the original AAV7 / LVTP-7 built by BAE Systems.

Post qualifications have reportedly been completed although there were no confirmation if Samsung Techwin was able to comply with the requirements. It is expected that an award for this project will be made early next year, as the 2-stage bidding process was also cut short with the entry of only 1 bidder. It is expected that the PMC will acquire more AAVs as the PN acquires more SSV and other amphibious naval ships to support Marine operations.



10. Shoulder-Launched Multipurpose Assault Weapon (SMAW) for the Marine Corps:
The Philippine Navy confirmed recently that they have started evaluating the Philippine Marine Corps (PMC) requirement for Shoulder-Launched Multipurpose Assault Weapon (SMAW) to replace the ageing and heavy recoilless rifles still used by the service. 

An old catalog of the SMAW, as marketed by the now defunct McDonnel Douglas Astronautics Company.

As discussed before in MaxDefense, this project has been in the pipeline for more than 2 years now, and it is curious to know why the PN only started the evaluation of this project recently. It is unclear yet if the PMC is interested in the original SMAW weapon used by the US Marines, or is still looking for a different model from other sources. It is interesting to note that the Philippine Army went separate ways on the decision to replace old recoilless rifles, with the Army choosing the RPG-7USA made by American arms company Airtronic.



10. 155mm Towed Howitzers for the Philippine Marine Corps:
Previously reported as a joint Philippine Army-Philippine Marine Corps project, and was reported won by Israeli company Elbit Systems Land and C4I, recent press releases by the Philippine Navy indicated that the project will again undergo a rebidding for still unknown reasons. 

The Elbit Systems Athos 155mm towed howitzer, which was initially selected as a winner for a joint PA-PMC 155mm towed howitzer acquisition project. The PN confirmed recently that a rebidding will take place soon.

If another bidding is to proceed, it is expected that this will happen within the 1st quarter of 2015, although it is still unclear if this will still be a joint acquisition with the Philippine Army. It appears also that the PMC is interested in acquiring support systems for the artillery system, including targeting radar and fire control computer systems.




Aside from those listed above, there are still many other projects under the Philippine Navy that are not discussed anymore, but will be given coverage in future MaxDefense blog entries as more information becomes available for public consumption.



Although 2014 has not been a very good year for the AFP Modernization due to several delays encountered due to questions on the source of funding, especially with the legislative moves questioning the legality of Disbursement Acceleration Program (DAP) and usage of the Malampaya Trust Fund, the AFP and DND were able to use the time to allow most of the projects to move quickly as issues are being cleared by early 2015. 

MaxDefense wishes the Armed Forces of the Philippines, the Department of National Defense, and all MaxDefense blogs and Facebook page readers a very Merry Christmas and a Happy, Prosperous New Year!! Wishing a faster-paced modernization program and additional support and budget from the national government to broader up the program further!

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Re-tender of 155mm Towed Howitzer and Ammo Acquisition for PA and PMC

The Philippines' Department of National Defense (DND) has subjected the 155mm Towed Howitzer with Ammunition acquisition program to a re-bid, after the initial attempt failed. The bid invitation is available at DND's BAC website. The projects Approved Budget for the Contract (ABC) still stands at Php 438,620,000.00 for 12 units of 155mm towed howitzer, 240 rounds of 155mm high explosive ammunition, and integrated logistics support package. Pre-bid conference  was scheduled last March 11, 2014, while the bid submission is scheduled on March 25, 2014.

The DND released another Invitation to Bid for the 155mm Towed Howitzer with Ammunition acquisition project in February 2014. ABC still remains, as well as the number of units for acquisition.

Previous reports indicated that Israel-based company Elbit Systems Land and C4I was the front-runner of the first tender, but their bid was ultimately rejected after DND found its submitted documents incomplete and non-complying. Elbit Systems is the owner of Soltam Systems, a company specializing in manufacturing howitzer systems including the Philippine Army's M-71 howitzers. Another reported bidder was Stone of David, also known as Joavi Philippines, which was involved in several major tenders for the Armed Forces of the Philippines (AFP) for the last several years. Stone of David was said to offer a Serbian or Bosnian-made howitzer based on the Yugoslavian version of the Soviet M46 howitzer using 155mm caliber instead of the original 130mm, probably produced by the same company that made the Philippine Army's new 81mm M69B mortars (which Stone of David supplied as well).

Hyundai WIA's KH179 (above) may not be offered again due to cost considerations, although MaxDefense is still hopeful that Hyundai WIA will re-consider and submit a bid.

The Yugoslavian version of the Soviet M46 howitzer, using a 155mm caliber gun instead of Soviet 130mm, might have been offered by Stone of David. It may be sourced from either Serbia or Bosnia.
Photo of M46 howitzer taken from militaryphotos.net.

An earlier MaxDefense blog entry speculated that Korea's Hyundai WIA will take part on the initial tender, but that they did not submit a bid. Also missing is the favorite among the AFP, the BAE Land System's M777. This might be due to the budget allocated by the AFP, as both Hyundai WIA's KH179 and BAE's M777 may cost higher than what the AFP can afford. It is expected that both Elbit Systems and Stone of David may return to re-bid for the project, and MaxDefense still expects Hyundai WIA and BAE Land Systems to pass on this project.

A simplified version of Elbit Systems' Soltam ATHOS 155mm Towed Howitzer might be offered to the Philippine Army and Marine Corps' requirements.
Photo taken from Army-Guide website.

MaxDefense's Opinion:
Based on information gathered and observation of events, MaxDefense believes that Elbit Systems has the highest chance of bagging this project, possibly with an offer based on a simplified version of the automated Soltam Athos System. This is related to the growing relationship between the Israeli military and defense industry, and the AFP. MaxDefense sources have already indicated a very active lobbying of Israeli systems to executive branch of the government, the DND, and the AFP. This is evident with the recent awarding or being shotlisted for defense projects by Israeli companies without undergoing tender: 

• Elbit recently got awarded with a contract to provide 28 upgraded M113 armored vehicles for the PA; 
• IAI-Elta Systems Ltd. was shortlisted as among the leading choices to supply the 3 air defense and surveillance radar systems for the Philippine Air Force.
• Although tendered, IAI-Elta Systems was one of the winning bidders for the establishment of Coast Watch Systems for the Philippine Navy. 

There are indications that Israel may be offering refurbished 155mm towed howtizers, probably Soltam M-71s (above) similar to what the PA is using.
Photo taken from Wikipedia.

There is a strong indication that Israel is pushing to supply the AFP with several military systems and equipment consisting of new and surplus but still usable systems. This includes several types of missile systems, armored vehicles, gun systems for land and naval applications, patrol boats, artillery, radar and sensors systems, combat aircraft and helicopters. This possibility of purchasing used/refurbished artillery systems from Israel may affect the decision in awarding the contract for the new 155mm towed howitzers, as it gives Israeli products a strong edge due to commonality in supply chain, maintenance, and training.

MaxDefense awaits for more information regarding this project and will inform its readers of any updates, as the 155mm towed howitzer project was given less attention with the SAA/LIFT acquisition project based on the KAI FA-50 is gaining traction these past weeks. 

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Updates:
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March 28, 2014 - Elbit Systems Land & C4I wins the tender to supply 12 units of 155mm towed howitzer and ammunition for the Philippine Army and Marine Corps. Elbit System's bid was reportedly at Php 368,837,332.00 for the entire package, which is lowed than the project ABC of Php 438,620,000.00. Offer was reportedly the ATHOS system, probably in 39 caliber model.

Elbit System's ATHOS 155mm Towed Howitzer, said to be the next 155mm towed artillery system for the PA & PMC.
Photo taken from Elbit System's website.

More updates from MaxDefense when information starts to trickle down.

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