SHAH ALAM: Back in August, Malaysian Defence wrote about the tender for the upgrade of six Hercules C-130 airlifter of the Royal Malaysian Air Force. The tender is for the avionics upgrade for RMAF Hercules, with the first aircraft as the test bed for the programme.
The tender was published on August 20 and was supposed to close on October 10 but the deadline was extended to December 9. Two days after the original post was published, it was updated as industry sources told me that the indicative cost for the first aircraft is listed at RM278 million. I wrote that the cost for the six aircraft will be around RM1.7 billion.
As the cost of the J-version of the Hercules is US$73 million (for the USAF) or RM301 million, we can get at least five new Hercules for the cost of the planned upgrade. That said, at this time, it will be difficult to pursue a procurement programme with the US and the OEM – Lockheed Martin.
Second hand Js like to those retired by the UK’s Royal Air Force will be cheaper still.
Several days after December 9, checks on the ministry’s website showed that the eight bids were made for the tender. As this is an international tender, six of the bids were made in US dollars. The other two were in Ringgit Malaysia.
The first bid is US$99.8 million (RM445 million); second, US$47.7 million (RM212 million); third US$72.4 million (RM322.76 million); fourth US$115.9 (RM516.68); fifth US$61.8 million (RM275.2 million); sixth US$65 million (RM289.77 million); seven RM264.8 (US$59.40) and eighth, RM277.9 million (US$62.81). It is likely the bids in ringgit were put by local companies. I am guessing the two are Airod Sdn Bhd and BHIC AeroServices Sdn Bhd. I stand to be corrected, of course.
Do note that the figures listed below are those marked on the envelopes of the bidders and the government is not bound by the lowest bid or any other bids. That said only the second, fifth, seven and eight bids are lower than the indicative cost.
Even with the eight bids, there is no guarantee work on the RMAF Hercules will go ahead. What I wrote previously still stands.
RMAF C-130 upgrade programme has been in the works for the last two decades – an LOI was even signed in 2014 but floundered for many reasons.
It is unclear whether the latest tender will lead to contract signing based on what we have seen in the past. With the plan to operate the Hercules fleet until 2040, an avionics upgrade is needed though. Malaysian Defence was told that the upgrade programme is similar to the ones planned but canceled previously.
— Malaysian Defence