PAF's LRPA Project Expected to Benefit with Improvement of PH-Spain Defense Cooperation

The Philippines' Department of National Defense (DND) recently confirmed that they are closer to having a closer defence cooperation agreement with Spain, which is a Memorandum of Understanding (MOU) on Logistics, Defence Materiel, Armaments, and Defence Industry Cooperation which would allow the DND to acquire to have Government-to-Government (G2G) acquisitions and transactions with its Spanish counterpart.

This is in relation to the ongoing Revised AFP Modernization Program (RAFPMP) which is currently in its Horizon 2 phase covering 2018 to 2022. Most of the projects in this phase has not yet been awarded or implemented so there is still a lot of projects that would be up for grabs.

Among those being considered by Spanish defense companies include the supply of mortars, assault weapons, small arms and artillery ammunition, warships and patrol boats, support ships, radar systems, sensors, air dropped munitions, armoured vehicles and support vehicles, infantry equipment, transport aircraft, and many more.

But it appears that the focus is more on the Philippine Air Force's own acquisitions, particularly the Long Range Patrol Aircraft (LRPA) project, which is among the most delayed project in the RAFPMP.

MaxDefense believes that among the foremost reasons on the Philippines' decision to go G2G with Spain is to finally realize the Long Range Patrol AIrcraft (LRPA) acquisition project, which apparently CASA-Airbus Military is the preferred supplier. The C295 aircraft is made by EADS-CASA in Spain, while the sensors and subsystems are from Airbus in France.
Credits to original source of photo.

Background:

The Long Range Patrol Aircraft (LRPA) acquisition project was intended for the Philippine Air Force to acquire it's first two (2) maritime patrol aircraft (MPA) that would be used for maritime surveillance, anti-ship and anti-submarine warfare (ASuW & ASW), intelligence gathering, and command & control (C2). The aircraft are to be able to fly further than the fringes of the country's Exclusive Economic Zone (EEZ), can be armed, and will be the primary surveillance asset of the PAF and Armed Forces of the Philippines in general. The allocated budget (ABC) for the project was Php5,976,000,000.00.

The project is actually part of the Horizon 1 phase of the RAFPMP, and was among the first projects that was implemented by the PAF due to the expected long acquisition period. It was decided by DND and PAF Senior Leaders back then that the acquisition will be via Two-Stage Public Bidding, with the procurement process starting as early as 1st quarter of 2014. It was expected that the winning bidder would be able to deliver both aircraft within 34 months after the release of Notice to Proceed (NTP), or opening of Letter of Credit (LOC).

In the first bidding attempt, none of the participating companies were able to pass the 1st first stage of the bidding. 

Another attempt was made in 2016, and only Airbus Military was able to pass the first stage and be eligible to proceed to the second stage in a couple of months. But after several negotiations in between and conducting the second stage bidding, Airbus Military also failed. 

MaxDefense found out that, due to the poor performance of the Philippine pesos against the US dollar and the Euro, the peso value of the ABC wasn't sufficient enough to allow Airbus Military to deliver two fully compliant MPAs, and allow them provide enough profit or margin. Instead, Airbus proposed to deliver 1 fully compliant aircraft, and 1 incomplete aircraft with the same bid amount they provided in the 1st stage bidding. But based on the government's procurement rules under RA 9184, this is unacceptable, thus Airbus' submitted bid was considered non-compliant, and they were declared disqualified.

With no other bidder in the project, the LRPA Acquisition project was considered a failed bid as of 2017, after more than a year of process.

A third attempt again happened in 2017 but was also considered another failed bidding, after none of the bidders passed the initial requirements under the first stage bidding.

With the failed biddings, the DND is now allowed by law to proceed to a Limited Sourced Negotiated Procurement, which means it can now go directly to several of its shortlisted suppliers/manufacturers and get their best offer. This means the DND can now go directly and negotiate with Airbus Defense & Space, which appears to be the PAF's preferred supplier for the LRPA with their Airbus-CASA C-295MPA Persuader, similar to those sold to the Chilean Navy.

Further reading is adviced, through our previous blog entries on the LRPA's technical specs:

"PAF'S Long Range Patrol Aircraft - Tech Specs, Post-Bidding Report and Updated Analysis" - first posted 29 May 2015.

LRPA Negotiated Procurement:

According to MaxDefense's earlier blog entries since 2014, despite the PAF's preference for refurbished Lockheed Martin P-3C Orion maritime patrol aircraft from either US, Japan or Australia, the PAF is bent on getting new aircraft as well.

The failed biddings in the past means the DND can now go directly and negotiate with Airbus Military as allowed by law. And according to MaxDefense sources from the DND, PAF, and the international defense market community, it appears that the PAF's TWG as well as the PAF leadership are all in agreement that they prefer to deal with Airbus Military to acquire their Airbus-CASA C-295MPA Persuader, similar to those sold to the Chilean Navy. This despite strong offers made by several companies and countries for their products.

The Airbus C-295ASW Persuader of the Chilean Navy, which has an anti-submarine capability including the presence of magnetic anomaly detector (MAD) and munitions firing capability for anti-submarine torpedoes or anti-ship missiles. The PAF LRPA requirement also calls for these capabilities.
Photo taken from Airliners.net.

Since this won't be a bidding anymore, the deal won't be purely commercial anymore, and may now include political influence due to its G2G nature. It means that despite the PAF's budget being too low for 2 fully functional C-295ASW Persuaders,  the G2G process allows the DND to make use of other ways to fulfil the deficit. Either by agreements in other matters that will allow the DND get the Spanish government's support, or for the DND to pay the rest of the amount later on as part of an agreement supported by its Spanish counterpart.

In short, a G2G deal with Spain allows the DND and PAF to finally realize the LRPA deal without the hassles of public bidding and long budget requests delaying the project.

Among the delays in the LRPA was attributed to the PAF's insistence of sticking to the specs rather than reducing the aircraft's capability to meet the budget. It was actually a good decision by PAF since they know how difficult it is for them to request for additional funding to fill-up systems that were fitted for but not with the aircraft.
Credits to original source of photo. 

VVIP/Command and Control Turboprop Aircraft Project:

Another project that will benefit from a G2G deal is the Philippine Air Force's VVIP / Command and Control Turboprop Aircraft acquisition project, which is part of the Horizon 2 phase of the RAFPMP. It aims to acquire a new turboprop powered aircraft that will act as one of the the Philippine president's service aircraft while travelling locally, and can also be used as a Command and Control platform, as it would be installed with C3 systems that would allow it to become the president's base of operation during emergencies. It would be one of the aircraft intended to replace the Fokker F.27 Fellowship propeller VVIP aircraft, and Fokker F.28 Fellowship VVIP jet aircraft still in service with the PAF's 250th Presidential Airlift Wing.

The PAF allocated an ABC worth Php1,800,000,000.00 for this aircraft, which MaxDefense believes to be an aircraft that is similar to something already in service. And it turns out our assumption was right.

The VVIP Fixed Wing Aircraft Turobprop aka VVIP / Command and Control Turboprop Aircraft, was among those planned for acquisition within the Horizon 2 phase of RAFPMP with an ABC of Php1.8 billion.
Photo taken from official defense documents.

Apparently another C-295 was ordered from EADS-CASA (Airbus) to fulfil the VVIP  C2 Turboprop Aircraft of the PAF.
Credits to original source of the photo.

According to sources, the Philippine Air Force picked on Airbus-CASA's C-295 medium turboprop aircraft for the project, and the DND was reported to have awarded it only last 16 October 2018.

Medium Lift Aircraft Acquisition Project:

Another Horizon 2 project that may benefit from the planned defense agreement improvement between the Philippines and Spain is the Philippine Air Force's Medium Lift Aircraft acquisition project, wherein the PAF plans to acquire 3 more medium airlifters to boost its current fleet of three (3) EADS-CASA Airbus C-295M medium tactical airlifters. The plan is for these aircraft to replace the two remaining Fokker F.27 Fellowship aircraft in service with the 220th Airlift Wing.

The ABC for this project is Php5,288,609,984.00 for three (3) aircraft.

Since the PAF is already using the Airbus C-295M, it is only logical and practical for the PAF to order another batch of either the C-295M, or the newer C-295W with winglets which is said to have improved performance and fuel economy over the winglet-less C-295M.

MaxDefense expects a contract for additonal C-295s to be only made by 2019 at the earliest, considering the cash flow of the RAFPMP funds are already allocated for several projects approved for implementation this and next year.

The EADS-CASA C-295W medium tactical transport aircraft, with the winglets upgrade compared to the original C-295M that the PAF already has.
Photo taken from Airbus website.

Other Potential Projects:

MaxDefense still cannot discount the strength of Spanish shipbuilder Navantia, which could still be interested in offering their products for the upcoming Corvette and Offshore Patrol Vessel acquisition projects of the Philippine Navy. Although they were absent in this year's ADAS 2018 defense expo in Manila, they still have presence in the region and is monitoring the acquisition plans of the Philippine Navy.

Navantia is still around the corner despite their loss on the Frigate Acquisition Project 3 years ago. They could still be interested in the Corvette Acquisition Project.
Photo taken from Navantia's website.

Another potential project that the Spanish are interested in participating are the Philippine Marines' acquisition of Mortars, specifically 60mm, 81mm, and 120mm, as well as a similar project with the Philippine Army although limited to 60mm and 81m only. NTGS' Alakran 120mm mobile mortar, as well as EXPAL's 81mm EIMOS and its line of 81mm and 60mm mortars are said to be among those being offered for the Marines' requirements

Separately, it was reported that a Spanish company approached Filipino arms manufacturer Armscor Global Defense, which we believe is to discuss possible representation or even local production of munitions that could be marketed to the Philippine government.

What's Next:

At the moment, the deal between Spain and the Philippines is not yet finalized, although it is expected that it would proceed as planned. It would be a win-win situation for both countries, as they both stand to benefit from such deal. 

Nonetheless, the DND and AFP should start negotiations with Spanish defense companies by now considering it takes a lot of time to complete a deal, and more time for the actual delivery.

MaxDefense would provide updates on these upcoming deals with Spain, as well as updates in the modernization program and agreements between the two countries..

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PAF's Long Range Patrol Aircraft - Tech Specs, Post-Bidding Report and Updated Analysis

The Philippines' Department of National Defense (DND) released a Supplemental Bid Bulletin dated July 24, 2014 for the Philippine Air Force's (PAF) Long Range Patrol Aircraft Aquisition Project. It included the initial technical specifications, which would be the basis for the 1st stage of the 2-stage bidding for the project.

A Lockheed P-3C Orion dropping sonobuoys.  Refurbished and upgraded P-3C were originally eyed by the Philippines for acquisition via US government FMS. But the deal did not push through and the DND opened a competition for new build MPA.

The PAF was a user of Fokker F-27MPA Maritimes in the past, but a replacement was not made for several years until the current LRPA project.
Photo taken from Wings Pallete website.

A summary of the technical specifications are as follows:

Technical Specifications - Aircraft (Major):
Numbers: 2 units, brand new, factory new;
Engine: at least 2 turboprops using Jet A1 fuel, jet engine not acceptable;
Minimum Payload at Maximum Fuel: at least 11,000 lbs;
Endurance: 7 hours
Cruising Speed: at least 200 knots;
Range: at least 1,400 nmi;
Service Ceiling: at least 25,000 feet;
Engine Time Before Overhaul (TBO): at least 3,600 hours;
Seating: at least 3 at cockpit, at least 10 for cabin;
Communication: at least 2 High Frequency Communication radios, at least 2 UHF radios, at least 2 marine band radios, at least 1 Satellite Communications (SATCOM), at least 1 Encryption unit;
Other Features: lavatory, 2 optic observation glass window, crew rest area for at least 3 crew,  hardpoints for weapons and pods, and external stores.

Technical Specifications - Mission and Surveillance System:
Console: 4 operator multi-functional consoles, physically and functionally identical, software the same as consoles on ground stations. Must be able to show tactical situation window, live or recorded EO/IR and radar video, sensors window (radar, ELINT/SIGINT/COMINT, acoustics, MAD), and other special windows (navigation data, data link and communication, display management);
Airborne Tactical System (ATS): to integrate mission sensors, aircraft navigation, communications, weapons control system,
Sensors integrated to ATS: search radar, Electro-Optical/Infrared (EO/IR) turret, ESM/ELINT/COMIT, acoustics, Magnetic Anomaly Detector (MAD), Automatic Identification System (AIS), Identification Friend or Foe (IFF) integrator, SATCOM and line of sight communication/data link.
Search Radar: should have Inverse Synthetic Aperture Radar (ISAR) mode, Wide Area Surveillance/Ground (WAS) mode, Sysnthetic Aperture Radar (SAR) mode.
Sonobuoy: to include Received and Processor, 100pcs. Active Sonobuoys, 100pcs. Passive Sonobuoys, and 30 Bathythermal Buoys;
Downlink System: Type and specification to be provided later on, should include 1 aircraft transmitter per aircraft, 1 airborne antenna per aircraft, 5 units of Fixed Station Receivers, 5 units of Line of Sight Data Link Antenna for Fixed Station Receiver, 17 units Ground Mobile Receiver with briefcase-type decryption unit, and 17 units Antenna.


There were 10 reported buyers of the Bid Documents for the LRPA Project, although only 8 companies submitted a query that were answered on the July 24 SBB. These are:

- ARINC Aerospace (USA);
- CASA-Airbus Defense and Space (Spain);
- Elbit Systems Ltd. (Israel);
- Field Aviation (USA);
- IAI Elta Systems Ltd. (Israel);
- L3 Mission Integration (USA);
- Lockheed Martin (USA);
- PT Dirgantara Indonesia (Persero) (Indonesia);
- Raytheon Company (USA);
- Saab Technologies Asia Pacific (Sweden).

IAI Elta System and Bombarider Aerospace's proposal for Q-400 maritime patrol aircraft. Bombardier might only supply the aircraft platform to some of the bidders who specializes in surveillance system manufacturing and integration.
Photo taken from Canadian-American Strategic Review website. 

Although Bombardier Aerospace of Canada submitted a query, it appears that they did not join the project as a direct bidding entity, but may probably supply their aircraft to some of the bidders, which will be explained below.

It is also worth noting that a major MPA manufacturer, Alenia Aerospace of Italy, did not even bother to acquire the bid documents. This may be due to their previous loss and accusations of irregularities against the DND for their award to Airbus Military to supply 3 C-295 tactical transports for the PAF's Medium Lift Fixed Wing Aircraft acquisition program.

A Nigerian Air Force ATR-42 maritime patrol aircraft. Alenia Aerospace did not participate in the PAF's LRPA acquisition project probably due to a negative position against the DND's award to Airbus Military for the Medium Lift Fixed Wing Aircraft acquisition.

Of all the bid document buyers, all except ARINC Aerospace, Field Aviation, and Raytheon Company did not submit a bid. Although MaxDefense still don't have any idea why ARINC and Field Aviation did not submit, Raytheon Company was reportedly teamed-up with PT Dirgantara Indonesia as a subcontractor for the mission systems integration part of their offer.

The following are the bidders and the findings made by DND-BAC, listed according to the sequence of bid opening made last August 11:

• Saab Technologies Asia Pacific was found ineligible to bid due to missing Tax Clearance documents;
• L3 Mission Integration was also found ineligible due to the eligibility document reasons; 
• Elbit Systems' bid was considered eligible and was the first bidder to do so. They were found ineligible on the 2nd part of the bid opening for technical specifications and performance parameters because they "did not include fast moving items and consumables in the list of minimum deliverables", according to an interview with SBAC-1 Chairman Defense Undersecretary Fernando Manalo.
• IAI Elta Systems was also found ineligible initially, but the decision was overturned after BAC found its submitted Financial Statement documents acceptable. They were found ineligible on the 2nd part of the bid opening for the same reasons as Elbit Systems.
• Lockheed Martin was also considered ineligible due to documentation problems;
• PT Dirgantara Indonesia (Indonesian Aerospace) was also found ineligible. 
• CASA-Airbus Defense and Space was also found ineligible because of failing to meet certain requirements.

The bidders are given until August 14, 2014 to file for a Motion for Reconsideration with the DND-BAC regarding their concerns. Otherwise, the bid will be considered a failure if no single entity passes all the requirements.

Possible Offers:
Although the 1st stage of the bidding has proceeded, it was still not known what are bidders actually intended to offer to the DND and PAF. The project is actually composed of 2 main sections: the platform aircraft, and the overall mission and surveillance integrated system. The 1st stage of the bidding gave more importance to the aircraft platform rather than the mission systems which the DND indicated to give priority in the 2nd stage.

Aircraft:
The platform aircraft was supposed to be provided by the bidders during the bidding, but MaxDefense believes that the following might be used by the bidders:

1. Airbus Military C-295
Already the PAF's possible leading choice due to its recent order for 3 units for its Medium Lift Fixed Wing aircraft requirement. MaxDefense believes that the technical specifications for the LRPA's aircraft platform was loosely based on this aircraft, thus it is considered as the benchmark aircraft.

CASA-Airbus Military's C-295 tactical transport aircraft.

2. Bombardier Dash 8 Q-400
There are a number of bidders which currently uses the Q-400 as its platform aircraft for their MPA and other Special Missions products. This aircraft is sleek, fast, and is also a very competitive special missions aircraft aside from being a proven turboprop regional airliner.  The Q-400 is Bombardier's latest Dash 8 Q-Series variant and is longer, more powerful and updated, and more competitive than its earlier variants. Its length can accommodate 4 or more console stations and space requirements compared to other aircraft. Due to its powerful but thirsty engines, a special mission military variant may feature an on-fuselage fuel tank.

The latest version of Bombardier's Dash 8 Q-series, the Q-400 NextGen.
Photo taken from Aviation News website.

3. Airbus Military-PTDI CN-235
An aircraft born on the partnership of Airbus Military subsidiary CASA of Spain and PTDI's forerunner IPTN. Although it is an Airbus product, a possible acquisition of the PAF of CN-235 aircraft may actually be from PTDI due to their agreement with Airbus on the distribution, sales, and support of the aircraft. The Philippines falls under PTDI's responsibility. The aircraft actually falls short on some details indicated in the LRPA's technical specifications. 

The Airbus Military-PTDI CN-235 tactical transport aircraft.

4. Alenia Aerospace ATR-42 or ATR-72 
Although Alenia is at odds with the DND over a previous project, some of the bidders may opt to use the ATR series aircraft as a base platform, considering that the aircraft was used by other countries for MPA duties. It is a proven turboprop regional airline like the Q-400, and also has special missions among its capabilities. Turkey uses the ATR-72 for its ASW-capable MPA, while other countries like Nigeria uses the shorter ATR-42 for MPA missions. 

An ATR-72-500 used by Cebu Pacific.
Photo taken from Airliners.net, copyright owned by Ryan Hemmings.

5. Saab 2000
This aircraft has some limited success as a special missions aircraft, although it was offered to several military forces as a MPA and AEWC aircraft platform. This aircraft also has to overcome one of the specification's requirements, which is to be a brand new, factory new aircraft. Saab stopped production of the Saab 2000 since 1999, and a possible offer to the PAF are probably refurbished units from Saab Aircraft Leasing company.

The Saab 2000.
Photo taken from Saab History website.

Special mention for IAI Elta Systems' earlier proposal to use the Gufstream G250 for their offer, which was turned down by the DND due to the specified requirement for turboprop engine-powered aircraft. The DND preferred turboprops due to fuel efficiency, easy maintenance, and less susceptible to foreign object damage. 

For those looking at the Lockheed Martin C-130J, MaxDefense needs to burst your bubble this early on. A brand new transport-configured C-130J costs more than the budget allocated for a fully-equipped MPA. Even the cheaper and simpler C-130XJ still can't meet the budget.


Mission Systems:
These are the integrated systems installed on the aircraft for it to conduct maritime patrol and surveillance duties. The DND and PAF has not been specific on this, and has announced in their SBB that it would be given more specific attention on the 2nd stage of the bidding. MaxDefense lists down what it believes to be the possible offers of the bidders:

1. CASA-Airbus Defense and Space C-295MPA or C-295ASW Persuader
Airbus has been offering the C-295MPA to several countries, and is currently their baseline offering for the maritime patrol aircraft market. It uses the Airbus-developed Fully Integrated Tactical System (FITS), which is an "onboard suite of networked computers" that integrates the different surveillance and mission systems of the MPA. The entire system consists of a search radar, EO/IR sensors, ESM, ELINT, COMIT, MAD, an IFF integrator, SATCOM, and a data link. FITS can actually be installed in other aircraft platforms, but since Airbus also manufactures the C-295, it is not impossible that they are offering this tandem to the LRPA acquisition project. 

Chile's C-295MPA and C-295ASW Persuaders are equipped with Airbus' FITS.

Airbus claims that the endurance of the Persuader is at 11 hours, or 6 hours on station at 200nmi range. The FITS system is palletized, and enables the aircraft to do other missions when necessary. 

MaxDefense believes that this system is also what the PAF and DND used as a baseline for their mission system requirements.


2. Elbit Systems' Proposal
This is a tricky part. Elbit currently has no manned maritime patrol aircraft product on offer (as far as MaxDefense is concerned). But it currently offers the Hermes 900 unmanned air system in a maritime patrol configuration. Elbit may probably use their expertise to install the system into a manned aircraft platform while complying with other requirements indicated in the project's technical specifications.

Elbit Systems may transfer their maritime patrol system from the Hermes 900 UAS to a manned aircraft platform to comply with the PAF's LRPA requirement.

3. IAI Elta Systems' EL/I-3360 Maritime Patrol Aircraft
The EL/I-3360 is actually a modular suite integrating surveillance and mission systems for maritime patrol aircraft. IAI Elta actually chose the Bombardier Q-400 as their aircraft platform of choice for this suite, and may have also teamed-up with Field Aviation (which bought bid documents but did not submit a bid), but they could actually integrate the system to another aircraft type with the same space provisions. It is possible that they could make an offer based on both the Bombardier Q-400 and the Airbus Military C-295 to increase their chances. The ELI-3360 uses IAI Elta's EL/M-2022A surface search radar system, ESM and MOSP type EO/IR sensor, a COMINT array, aft mounted countermeasures dispensers and side-mounted containers, and a mixture of other surveillance and intelligence systems. 

IAI Elta offered the EL/I-3360 MPA using the Bombardier Q-400 aircraft for the UK's MPA requirements.
Photo taken from AIN Online website c/o David McIntosh.

4. L3 Mission Integration's Maritime Patrol Aircraft
In cooperation with Bombardier, Selex ES, Ultra Electronics, and also possibly Field Aviation, L3 Mission Integration has a current Maritime Patrol Aircraft design using the Q-400 aircraft platform. L3's system integrates the Selex Seaspray 7500 search radar or the Eagle AESA wide-area radar, and Ultra Electronics' Airborne Acoustic System.

L-3 Mission Integration's venture with Bombardier, Selex and Ultra Electronics produced this Q-400 based maritime patrol aircraft for the British requirements. L-3 may offer the same for the PAF.
Photo taken from L-3 Mission Integration's website.

5. Lockheed Martin's Maritime Patrol and Reconnaissance Aircraft
The US company was part of the US Coast Guard's HC-144 Ocean Sentry maritime patrol aircraft, whose Mission System Pallet roll-on, roll-off electronics suite was used on a Airbus-supplied CN-235 aircraft platform. This same is equipment was used by Lockheed Martin on the USCG's HC-130 surveillance aircraft, thus it can also be used to modify transport variants of the C-130s into maritime patrol aircraft after some modifications.

Lockheed Martin may also modify the systems used in the USCG surveilllance aircraft to include those specifically required by the LRPA technical specificaions. These includes the addition of anti-submarine equipment, COMINT/SIGINT/ELINT systems, use of a more capable search radar, and capability to carry weapons.

Aside from the CN-235, Lockheed Martin may also opt to use the larger Airbus C-295 aircraft, or offer to use PAF's current C-130 fleet. Earlier Lockheed Martin did announced their intention to discuss with the PAF to modify some of the PAF's C-130 Hercules transports, which they claim would cost less than half of a new MPA. 

The US Coast Guard's HC-144A Ocean Sentry uses Lockheed Martin's Mission System Pallet electronics suite on an Airbus CN-235 aircraft.
Photo taken from Wikipedia.

The same Mission Pallet System was also offered by Lockheed Martin to be installed on some of the PAF's C-130 Hercules transport aircraft, although this might be a separate offer aside from bidding for the new LRPA.
Photo taken from Wikipedia.

6. PT Dirgantara Indonesia's CN-235MP Persuader
If reports are true that PTDI teamed-up with Raytheon Company for their MPA offer for the PAF, then this would be a departure from PTDI's previous team-up with Thales with their AMASCOS 200 system for the TNI-AL (Indonesian Navy) MPA requirement. 

Raytheon previously offered their AN/APS-134 surface search radar for the CN-235MPA Persuader, and also has the AN/APS-148 Sea Vue search radar. They have the capability to provide PTDI with the necessary surveillance and weapons systems and integration. Their recent experience was as the weapons integrator for Turkey's Meltem-III ATR-72 MPA program.

The CN-235's smaller size may compromise its bid as it cannot meet some of the requirements set by the DND. From the layout below, it shows the disadvantage of its tight interior space to provide the number of console stations and other provisions.

A typical layout of a CN-235MP Persuader aircraft.
Photo taken from bandara.com.

The CN-235-220 MPA from PT DI (Indonesian Aerospace) for the Indonesian Navy, but this specific aircraft uses the Thales AMASCOS 200 instead of a system from Raytheon. Take note of the modified nose to carry a search radar.
Top photo taken from PTDI website. Bottom photo taken from Mahdi News website.

7. Saab Technologies' Swordfish Maritime Patrol Aircraft
The Swedish company's current offering, the Swordfish MPA uses their own Saab 2000 aircraft platform. Saab claims that the Swordfish has a maximum endurance greater than 9.5 hours, and a typical on-station time of up to 5.5 hours while operating 200nmi from its base. It also has a maximum range of greater than 2,000 nmi, a maximum cruise speed of 350 knots, and a patrol speed of 160 knots. It has a service ceiling of 31,000 feet and needs 1,300 meters of take-off runway distance. It integrates Selex's Seaspray 7500 maritime surveillance radar, an active Acoustic System from Ultra Electronics, and a high definition EO/IR sensor pod from FLIR Systems. The aircraft is also equipped with an advanced C4I, AIS, IFF, ESM, Self-Protection System (SPS), SATCOM and Data Links.

Although there are no new Saab 2000s produced since 1999, so Saab needs to discuss this thoroughly with the DND to keep their product in the race. 

The Saab 2000 Swordfish MPA demonstrator.
Photo taken from AIRheads Fly website.

The Saab 2000 Swordfish's layout. Saab may need to adjust the layout to conform to PAF requirements should their offer be shortlisted.
Photo taken from Saab 2000 Swordfish datasheet.

The Verdict:
MaxDefense believes that this project is one of the most tightest competitions ever to be conducted by the DND and AFP, although the choice of the platform is biased on the Airbus Military C-295 due to its commonality with tactical transports ordered by the PAF earlier. The Bombardier Q-400 is a very good aircraft, and so is the Saab 2000 if only there are new builds for this aircraft. 

Although MaxDefense believes that Airbus Defense and Space has the highest chance of bagging the project, IAI Elta Systems and L-3 Mission Integration may have a strong chance of stealing away a win from the front runner. 

If the competitive bidding last August 11, 2014 will be considered a total failure, then the DND may opt to either have a re-bidding using the same or a revised specification and documentation requirements, a negotiated bidding, or a government-to-government (G2G) deal with a friendly foreign government, which is actually the fastest way to acquire the system. MaxDefense still hopes that the bidders will submit a Motion for Reconsideration, and the DND-BAC allows the bidders to proceed to avoid further delays on the project, since majority of the reasons for ineligibility was because of the slow processing time to acquire documents from Philippine government offices and agencies.

More updates will be made as MaxDefense awaits the outcome of the MFR deadline, which is supposed to be today, August 14, 2014.

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UPDATES:
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April 18, 2015:
MaxDefense has not updated this entry for several month. It would be remembered that MaxDefense @ Facebook covered the report wherein the bid submission and opening for the project failed last August 11, 2014, and that the DND SBAC-1 has given IAI Elta and Elbit Systems until August 14, 2014 to file for a Motion for Reconsideration.

Eventually the bidding did not push through and was considered a failed bidding. According to government procurement procedures, the DND can proceed with a re-bidding for the project. But so far, the DND has not proceeded with a rebidding for still unconfirmed reasons, as no formal reason has been released by the DND.


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June 25, 2015:
Aside from pursuing the acquisition of P-3C Orions, the DND also confirmed that the Long Range Patrol Aircraft (LRPA) project for the Philippine Air Force is still a go, although the bidding could not proceed because it was among those pending due to Malacanang's decision not to abruptly sign the Revised AFP Modernization Act for reasons still not confirmed by both the DND and the Office of the President. This project is said to run astride with the P-3C Orion acquisition, alhough the concept of operating two types of MPA aircraft is still questionable.

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Analysis on the PAF's Upcoming Long Range Patrol Aircraft

For the past few months, you may have been hearing representatives from the Philippines' Department of National Defense (DND) and Armed Forces of the Philippines (AFP) discussing the acquisition of long range patrol aircraft for the Philippine Air Force (PAF). The last of these announcements even came from President Benigno Aquino III himself during the appointment of new PAF chief Maj. Gen. Jeffrey Delgado last month, where he reiterated the national government's support for the aircraft purchase.

MaxDefense's previous blog entry discussions included the DND's ongoing deal with the US government on the procurement of patrol aircraft, in which they will be acquired under a US Foreign Military Sales (FMS) program. The Approved Budget for the Contract (ABC) allocated for the 2 aircraft is Php 5.97 billion (around $133 million), which includes training of aircrew and ground personnel, and an Integrated Logistics Support (ILS) package. As of this writing, MaxDefense sources says that the deal with the US government is now in the final stages, and we can expect the DND to announce the deal completion within a few months, or even weeks, from now. Expected delivery of the 1st unit is expected by 2016, while the 2nd unit may arrive by 2017.


Purpose:
The PAF's Long Range Patrol Aircraft (LRPA) are expected to be the Philippine military's primary airborne "eyes and ears" platform, designed to detect and identify surface and possibly subsurface assets passing through or intruding the country's Exclusive Economic Zone (EEZ) and territorial waters. They are equipped with advanced surveillance systems, can operate both day and night, have enough range and endurance to be present in the air for the longest possible time, and would probably be armed to defeat hostile naval threats.


Possible Offers:
So what is the long range patrol aircraft to be procured? Previously, MaxDefense discussed a possible shortlist of what the US can provide for the project: the Lockheed P-3C Orion, and the Airbus Military CN-235MP or the larger C-295 MP or ASW Persuader. Aside from these, MaxDefense also sees the Boeing MSA as a possible contender, which is presently offered using a Bombardier CL-600 Challenger 605 business jet as a platform, installed with the sensors of the P-8A Poseidon. The Boeing MSA can also be offered in other suitable business jet models like the larger Bombardier Global Express, depending on the client's requirement.

Lockheed's P-3 Orion maritime patrol aircraft
Photo taken from Wikimedia.

Being a US government assisted program, we can now say that other contenders that we have been discussing months ago can be taken out of the list, which includes the ATR-42MP Surveyor and ATR-72ASW from Italy.

Not much has been released on the specifications of the long range maritime patrol aircraft requirement of the PAF because of the DND's decision to go for a direct deal with the US government. The DND won't be required to publish the specifications to the public like what it usually do for its other projects undergoing tender. We can, for now, dwell on the ABC, averaging at around $66 million per aircraft.

Availability and Cost:
Non-flying P-3s are abundant in US military storage facilities and can be either be granted or sold to allies, and reactivated and upgraded anytime for immediate service. Some recent recipients of the aircraft include Pakistan and Taiwan, which have the same close military relationship with the US as the Philippines. If the US government provide the airframes to the Philippines by grant, the budget allocated by the DND would be enough to pay for refurbishing and reactivation of 2 P-3C Orions from the boneyard. Normally refurbished P-3s were sold by the US government above $80 million each, so the US government's offer would now depend on the US government's means to assist the Philippines. It would be best if the DND would get the newer P-3C variant, which is more advanced and less airframe hours.

The Boeing MSA using the Challenger 605 platform was quoted by Boeing to cost around $50-$60 million, within the budget allocated as well, but being a new platform with no buyers yet, it may encounter compliance issues on technicalities set by the DND for procurement of assets.

The CN-235MP Persuader is definitely within the budget allocated by the DND, and there are estimates we can take from previous deals that Airbus Military (or previously as EADS) had with other military units. Previously, Mexico's deal was for 6 CN-235 MP Persuaders was estimated at around $252 million for 6 aircraft, including ground infrastructure, plus full logistics and spares support for 5 years (average of $42 million per aircraft). Aside from Mexico and the US Coast Guard, there are several other countries operating the CN-235MP Persuader in different configurations. Previous contracts by Airbus Military with the US Coast Guard pegs the HC-144A Ocean Sentry at $35-40 million each as of 2010.

The C-295MP / C-295ASW are expected to be more expensive that the CN-235MP, but may still be within the budget provided by the DND. The sale of such aircraft to Chile a few years ago did not disclose the deal's value, but MaxDefense sources confirmed that the C-295MP and C-295ASW will not exceed $55 million each for the complete aircraft.

A Chilean Navy C-295MP Persuader maritime patrol aircraft, a product of EADS (now Airbus Military).

US Government Involvement:
A project that involves the US government should consider some factors as compared to buying in the open market. US interests will be in the forefront, and this may either include allowing (or disallowing) the Philippine military to use US-standard equipment and technology. Being a Major Non-NATO Ally, the Philippine may be eligible to obtain such equipment, but there might be some restrictions as well depending on the decision of the US government. 

Will the US allow the Philippines to own and operate the P-3C Orion, its equipment and systems, armaments, and obtain the training? From MaxDefense's opinion, yes, the Philippines may be allowed to do so, but MaxDefense can't confirm this yet. But this reason may not stop the DND from getting its hands on a P-3 Orion. The US may offer a less-capable version which also costs less than the standard high end version, it could probably have its surveillance systems replaced with another type, or it could also be a de-weaponised version similar to what was offered to Vietnam. 

Also, the source of equipment to be sold to the Philippines will probably be from US defense contractors, although there were recent instances that the US offered FMS for equipment sourced outside the US, like the proposed AT-26 Super Tucano program for Afghanistan, or the CN-235MP Persuader acquisition for Mexico. So the P-3C Orion has a greater chance of being offered as compared to the Spanish-built CN-235 or C-295 series aircraft.


Conflict of Interest:
The CN-235 and C-295 platforms are both from Airbus Military, and although they have offices in the US, they are sourced from CASA-Airbus Military's factory in Spain. This might have implications on the sale due to the involvement of the US government in the patrol aircraft acquisition. It is expected that the US will push to have its products sold, either EDA or new builds. The C-295MP/ASW Persuader's FITS (Fully Integrated Tactical System) was also developed by EADS/Airbus Military, which makes the aircraft less attractive as a US government offer.

A possible solution is for Airbus Military to provide the aircraft platform, and US defense contractors will provide the surveillance and integration systems. A similar project is on the USCG's HC-144A Ocean Sentry aircraft, which is actually a CN-235 MP Persuader using US-made systems. The US may offer a C-295 or CN-235 equipped with Lockheed Martin's Mission System Pallet (MSP), or any alternative systems from other American defense contractors like Northrop Grumman. 

The Airbus Military's HC-144 Ocean Sentry maritime surveillance aircraft operated by the US Coast Guard. This is based closely on Airbus Military's CN-235MP Persuader.
Photo taken from US Coast Guard website c/o Wikimedia.

Boeing may offer any business jet to install its MSA system, and may include US-made aircraft like the Gulfstream G550 Special Mission series, although the choice of aircraft to be used may dictate the final pricing of the aircraft. 

Boeing -Bombardier Challenger 605 MSA (maritime surveillance aircraft).
Photo taken from Australian Aviation website.

Natural Choice:
Among the possible contenders, the P-3 is said to be the best choice of the DND and AFP, being a favorite for several years now. According to MaxDefense sources from the AFP, both the Philippine Navy and Air Force have been looking at the P-3 Orion since the implementation of the AFP Modernization Program in 1995. It has been present in almost all PH-US military exercises and is also a usual visitor to the country. US Navy P-3s regularly patrol Philippine waters when the Americans were still occupying Subic Naval Base, and continues to do so "unofficially" in several occasions up to this time. It has become the baseline set by the PN & PAF for any future maritime patrol aircraft, even after the availability of newer and cheaper models in the market.

The C-295MP or C-295ASW Persuader are also strong contenders that we can consider a natural choice. With the C-295 platform chosen as the next medium-lift aircraft of the PAF, its chances of getting chosen rather than its smaller variant CN-235 is higher. The longer range and higher endurance of the larger C-295 is another advantage against the CN-235, but both can be equipped with US-supplied MPA equipment which might be an integral part of the deal being a US government sale.


Weapon Delivery Capability Requirement?
MaxDefense sources also revealed that the PAF ideally wanted an MPA aircraft that is capable of carrying and firing anti-ship missiles and anti-submarine torpedoes, which the Boeing MSA does not have. In the meantime, the Lockheed P-3 Orion and the Airbus Military C-295ASW Persuader are configured to have the capability of weapons delivery. The C-295 has an ongoing test to carry the Italian Marte Mk.2/S anti-ship missiles, although no word yet on firing other types. 

Chile's C-295ASW Persuader. The underwing hardpoint is visible in this angle, which can be used to mount ASW torpedoes. 

The P-3C is certified to fire the AGM-84 Harpoon missile, as well as torpedoes and naval mines, giving it an advantage over all other competitors on this requirement.



Acquisition Numbers:
It is surprising to know that the DND and PAF are only looking for 2 units, when the total requirement is for at least 6 aircraft. This is probably the initial acquisition, and as more funds come in after this phase of the AFP Modernization Program, at least 4 more aircraft will be acquired. 



MaxDefense doesn't know yet which was offered by the US government to the DND and PAF, but it appears that refurbished Lockheed P-3C Orions has the higher probability of being offered or picked against its Airbus Military and Boeing competitors. The Orion is the most capable platform being a proven design,  But whatever is the result of the acquisition program would be beneficial to the Philippine military's goal of having a modest capability to patrol its vast EEZ and territorial waters. We await for more details on this FMS project, which we expect to be finalized very soon. 

MaxDefense will provide updates on this project as more information comes in. 




==========
UPDATES
==========
May 20, 2014: The DND released an Invitation to Bid for the PAF's upcoming Long Range Patrol Aircraft (LRPA). This is major turn-around for the project as the negotiations was already on the high-end between the Philippine and US governments for US FMS-sourced equipment. This can be considered a major set-back as the original timetable for the LRPA acquisition was pushed back by more than 1 year as the expected arrival of the 1st unit was scheduled on 2016, probably just before President Aquino steps down.

It appears that the US indeed offered refurbished P-3C Orion to the DND, but it is still unclear why the deal did not push-through. MaxDefense is still finding out the details, but there are 2 possible reasons why the DND decided to go for bidding, either the US government was asking for more than the allocated budget of the DND, or the US made an offer that the DND finds unacceptable. 

The tender for the LRPA has the following details:
* ABC remains at Php 5,976,000,000.00;
* 2-stage Competitive Bidding (similar to the bidding for the Philippine Navy's new frigates and anti-submarine helicopter acquisition programs);
* Delivery of both aircraft will be 1,095 days (2 years and 10 months) from receipt of Notice to Proceed;
* 1st stage pre-bid conference is scheduled on May 30, 2014, while submission of bids will be on or before June 13, 2014;
* The LRPA must be used by the armed forces of country of origin, or by the armed forces of at least 2 other countries;

Being a tender, it is expected that the aircraft will be brand new. If so, then the EDA Lockheed P-3C Orions, or any other EDA offers from the US or other friendly countries are definitely out of the game. But it would be best to check the Technical Specifications first, which will definitely indicate if the requirement are for brand new aircraft.

MaxDefense will continue to provide update on this LRPA acquisition project.

===============
June 28, 2014:
The DND released another Supplemental Bid Bulletin, showing the queries made by the expected bidders, and DND-BAC's replies. From the list, it shows the entities expected to submit a bid for the project as:

* Elbit Systems;
* Airbus Defense and Space;
* Raytheon;
* IAI Elta Systems Ltd.;
* Saab Technologies;
* PT Dirgantara Indonesia (Persero);
* Bombardier Aerospace;
* L3 Mission Integration
* Lockheed Martin.

Quoting from the replies made by the DND-BAC and the checklist included in the SBB, it shows that the aircraft platform should be brand new, turboprop-powered, 11,000 lbs. minimum payload at maximum fuel, 7 hours minimum endurance, cruising speed of at least 200 knots, range of at least 1,400nmi. 

It also indicated the need for the aircraft to accommodate 4 operator consoles, aerial surveillance camera (EO/IR), a search radar with ISAR, WAS, and SAR modes, ESM/ELINT, COMINT, Magnetic Anomaly Detector (MAD), Sonobuoy receivers and processors, tactical data link, and availability of hardpoints to carry munitions and stores. 

=================
August 11, 2014:
Opening of bid documents for 1st stage bidding of Long Range Patrol Aircraft acquisition project ongoing. The bidding did not proceed as planned.

 All 7 bid submissions were opened and the following were noted:

For documentation requirements:
* Saab Asia Pacific was found ineligible to bid due to missing Tax Clearance documents;
* L3 Mission Integration was also found ineligible due to the same reason; 
* IAI Elta Systems was also found ineligible initially, but the decision was overturned after BAC found its submitted Financial Statement documents eligible;
* Elbit Systems' bid was considered eligible and was the first bidder to do so;
* Lockheed Martin was also considered ineligible due to documentation problems;
* PT Dirgantara Indonesia (Indonesian Aerospace) was also found ineligible. 
* CASA-Airbus Defense and Space was also found ineligible because of failing to meet certain requirements.

With only 2 Israeli companies, IAI Elta Systems and Elbit Systems, passing the documentation requirements, both underwent with the opening of technical specifications and performance parameters, both companies failed to make the mark. 

Due to the failure, further checking by the DND-BAC for the brand and type of aircraft platform offered - an important part of the bidding, did not continue.

Bidders that failed the documentation part of the bid opening are given a chance to file for a Motion for Reconsideration within 3 days. MaxDefense expects most of the bidders to make use of the MOR as majority failed only because of documentation requirements and not because their bids are non-compliant. CASA-Airbus Defense and Space, Saab Asia Pacific, and PT Dirgantara Indonesia already made known their intentions to file for MOR in the next few days.

The deadline for filing of Motion for Reconsideration was set on Thursday, August 14, 2014, and if the DND-BAC acknowledges the documents, the bidders will be given a chance to open the other parts of their bids.

More updates will be made later on as more information is made available.


==================
September 19, 2016:

Finally got updates on the Philippine Air Force's Long Range Patrol Aircraft (LRPA) acquisition project, which was not given updates for several months now. 

Based on the Supplementary Bid Bulletins made available by the Department of National Defense last March 2016, interests on the project was made through queries sent for clarifications. Among those noted to have submitted their queries are Elbit Systems, Boeing, Finmeccanica, PT Dirgantara Indonesia (Persero), Airbus Military, and ELTA Systems Ltd. 

Based on the queries made, Elbit Systems seemed interested to submit an offer based on an Unmanned Aerial Vehicle (UAV) platform which was not acceptable. 

Meanwhile, Boeing may require US Congress approval for the sale of their product, which means they still have a say if the deal can proceed or not, while the entire process can delay the project. 

PT Dirgantara Indonesia was trying to push for an extension of the delivery timeline, and appears to be having problems meeting the minimum requirements of having a minimum payload of 11,000lbs at maximum fuel. It was not posted in the SBB but as of June 2016, the company is actually blacklisted from joining biddings or projects with the AFP. 

Finmeccanica's query were more on administrative including their expected change of company name (now known as Leonardo), while Elta requested asked regarding the possible use of an aircraft model already offered by a competitor, which means they can use any aircraft model as long as it meets the specifications of the PAF.

According to MaxDefense's military and defense sources, the LRPA Project's 1st Stage Bidding proceeded with the Submission and Opening of Bid Envelopes (SOBE) last March 2016, with Airbus Military being the only one qualified to continue to the 2nd Stage. Although there was no confirmation of what Airbus is exactly offering, it was said to be using the C-295 aircraft as a platform. Based on the Technical Specifications used by the PAF, MaxDefense believes the offer will be derived from Airbus' C-295 ASW Persuader maritime patrol / anti-submarine warfare aircraft.

No schedule yet on when the 2nd Stage of the Bidding will be made.

The PAF's specifications for the LRPA included an anti-submarine warfare capability, including firing torpedoes and being equipped with a Magnetic Anomaly Detector (MAD), thus pointing that Airbus should be offering the armed ASW variant of their C-295ASW Persuader,
Photo taken from Airbus' website.

MaxDefense will provide updates later on as more information is gathered.

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