Criticism In Malaysia Of Sole Source Submarine Contract

In 2002 the Malaysian Government signed a contract to purchase two advanced diesel electric submarines from European manufacturers. The contract was worth about $1.5 billion. The first vessel has already been delivered and the second will be next year.

The opposition parties are criticizing the government for not doing the contract through competitive bids but rather sole sourcing it to France’s Aramis and Spain’s Navantia. The normal practice in Malaysia is to competitively bid large contracts but the Government defended the contract as protecting defense information. The argument must be that since no public RFP was put out only the builder learned about the requirements and capabilities needed. It is rather a strange argument unless there is an acceptance that only domestic suppliers can be trusted and as in this case there were none.

U.S. DoD Awards Verizon Large Telecom Contract

Networkworld reports that the U.S. awarded Verizon a ten year contract to provide communication services to bases in the Pacific. The contract will support facilities in the Western U.S., Pacific Rim countries, Central and South America as well as in South West Asia. The contract has a value of $2.5 billion if all options are exercised by 2019. Verizon will manage the Defense Information Network System (DISN) for the military which is used to provide basically all communications for the facilities including internet as well as voice and video. This contract is a continuation of an earlier one won by MCI which was absorbed by Verizon.

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