By Kang Seung-woo
The military has asked for 900 billion won in additional budget for the new fighter program or F-X project, a source said Wednesday.
The source said, “This amount comes on top of 7.5 trillion won that is currently set aside for the purchase of the aircraft.” The total FX budget is set at 8.3 trillion but only 7.5 trillion won is for aircraft purchases with the rest for, among others, armaments.
The request for an increased budget will be formally made after the new round of bidding that is expected to fail to produce a clear winner.
The Defense Acquisition Program Administration (DAPA) said that no request for additional budget has been made nor has it been considered.
All three competitors failed to meet the given budget in the previous round.
A new round of bidding midway through this month is not likely to close the price gap.
In addition, Lockheed Martin’s F-35 Lightning II, currently in development, may benefit from it, experts say.
The F-35 is vying against Boeing’s proposed F-15 Silent Eagle and the European Aeronautic Defense and Space Company (EADS)’s Eurofighter Tranche 3 Typhoon.
“Although DAPA has decided to reopen a new round of bidding, it will proceed with the same condition that resulted in a temporary halt (last month). Will there be another factor to push the costs down in companies’ sides?” said Lee Hee-woo, president of ILS Research Institute and former Air Force general.
“In addition, it hinted at increasing the budget unless it finds the final bidder, which will prevent the bidders from moving to within the budget.”
Yang Uk, a senior research fellow at Korea Defense and Security Forum (KDSF), said that the nation’s arms procurement agency set a low price ceiling.
“The DAPA budget is worth about 50 highly capable combat planes. Without lowering the number of jets to be bought, no company will satisfy the procurement price,” he said.
He added that as the budget cannot be upped at this point, the bidding will end in failure.
Starting on June 18, DAPA carried out a total of 55 bidding sessions for three weeks, but all competitors failed to satisfy the government’s budget requirements and as a result, DAPA temporarily suspended the project.
Last week’s meeting, presided over by Defense Minister Kim Kwan-jin, came up with a decision to reopen the bidding in order to avoid further delay of the project.
Meanwhile, another possible delay will help the besieged F-35 catch its breath, the watchers said. If DAPA tweaks the program, it is foreseen to take about two years.
Development of the stealth jet has been delayed due to technical glitches and it is often the competitor’s punch line because critics say it is questionable if the aircraft will be delivered at a time Korea needs them.
“If the bidding is declared a failure, it will work to the F-35’s advantage because they will be given time to solve what critics attack,” Yang said.