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.

Malaysia orders joint US – French air defense surveillance system

The Malaysian government ordered from RaytheonThalesSystems an upgraded air defense surveillance and control system for the country. See the story here. The system will be based on a central command and control facility designed and built by Raytheon for the US and Canada. Thales will make a long range radar in France to provide surveillance and data to the command center. No details on the size of the contract were announced.

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