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Frigate Lot 2C Sublot 2 - 30mm Ammunition Acquisition Project of the Philippine Navy

As part of the acquisition of frigates by the Philippine Navy, a separate lot for the acquisition of munitions was also provided as part of the Horizon 1 phase of the Revised AFP Modernization Program.

This entry discusses updates on the Frigate Acquisition Project Lot 2C Sublot-2: 30mm Ammunition acquisition project of the Philippine Navy.


Acquisition of 30mm Ammunition is required for the Aselsan SMASH 30mm naval guns of the Jose Rizal-class frigates. Credits to original source of the photos above.


Project Summary:

Frigate Acquisition Project Lot 2C Sublot 2 - 30mm Ammunition Acquisition Project

Note: Edited as of 10 January 2020:

* End User: Philippine Navy (Offshore Combat Force)

* Quantity: 1 lot

* Modernization Phase: Horizon 1 phase Priority Projects of RAFPMP

* Project ABC: Php114,147,256.00

* Acquisition Mode: Public Bidding

* Source of Funding: GAA Funds through AFP Modernization Program Trust Fund

* SARO Release: TBA

* Winning Proponent: Nammo Palencia S.A. (Spain)

* Product for Delivery: 
    - 3,000 rounds CTG 30mm TPT
    - 6,000 rounds CTG 30mm HEI
    - 2 units cutout model of CTG 30mm TPT
    - 2 units cutout model of CTG 30mm HEI

* Contract Price: Php110,839,806.00, converted from EU1,912,680.00

* First post by MaxDefense: 07 February 2016

* Searching Hashtag: #PNFAPLot2C30mmAmmoAcquisition

* Status: Project awarded to Nammo Palencia S.A., NOA released November 2019, Contract Signed and NTP released on December 2019. Expected delivery within 360 calendar days from NTP release.

Overview:

The acquisition of 30mm ammunition was originally part of the frigate's requirements, wherein the shipbuilder shall provide the ammunition as part of the deal to build the frigates.

The decision to separate the acquisition of ammunition was made in 2016 prior to the start of the 2nd Stage Bidding of the Frigate Acquisition Project. The decision was in line with the request of most of the interested shipbuilders to separate the acquisition of ammunition from the frigate platform itself as shipbuilders are not in a position to purchase munitions like missiles on behalf of the Philippine Navy.

Usually, it is the end user that directly acquires the munitions as this requires government approval and cannot just be sold to any company or entity.

Originally the budget allocated for this project was Php100,000,000.00. But based on the bid documents, it was increased to Php114,147,256.00.

The DND conducted 4 bidding attempts before the project was declared successfully tendered. 

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U P D A T E S:
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07 February 2016:

The Department of National Defense (DND) released the Bid Documents for the 2nd Stage Bidding of the Frigate Acquisition Project of the Philippine Navy, and the requirement now separates the acquisition of munitions fro the actual frigate platform.

Since the caliber of the secondary gun was placed in the specs as between 30mm to 40mm, there was no specifics with regards to size of the munition to be acquired. Besides, since the acquisition of the munitions has become separate, this was not given priority anymore until the frigate platform is confirmed and its design approved.

This was discussed on MaxDefense's blog entry, which can be accessed from the link below:

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03 September 2016:

MaxDefense discussed the weapon subsystems submitted by the winning shipbuilder Hyundai Heavy Industries (HHI), as well as that of the losing shipbuilder Garden Reach Shipbuilders and Engineers (GRSE) for comparison.

Both shipbuilders offered a 30mm caliber gun, which means the ammunition needed would be compatible to the guns.

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05 March 2019:

The DND has released an Invitation to Bid (ITB) for the Frigate Acquisition Project Lot 2C Sublot 2: 30mm Ammunition acquisition project.

The munitions are 30 x 173mm, and should be compatible with the Aselsan SMASH 30mm gun's Mk.44 Bushmaster II cannon.

The schedule of requirements are as follows:

A. Ctg. 30mm Ammunition Target Practice Tracer (TPT): 4,000 rounds
B. Ctg. 30mm Ammunition High Explosive Incendiary (HEI): 6,000 rounds
C. Cut-aways: 2 nos. TPT, 2 nos. HEI
The Approved Budget for Contract (ABC) is Php114,147,256.00, and the winning bidder is required to deliver the goods within 360 days from receiving the Notice to Proceed (NTP) from the DND.

Pre-Bid Conference is scheduled 14 March 2019, while the Submission deadline and Opening of Bids is scheduled on 28 March 2019.

Part of the Invitation to Bid for the Frigate Acquisition Project Lot 2C Sublot 2: 30mm Ammunition. Photo screenshot from bid docs as provided in DND's website.
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14 March 2019:

The Bid Submission deadline and Bid Opening schedule was moved from 28 March 2019, to 30 April 2019.


Updated closing date of submission of bids, now indicating 30 March 2019. Photo screengrabbed from PhilGEPS.


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19 June 2019:

It appears that the 1st bidding attempt failed, as the DND released a new set of Bid Documents indicating it to be a Rebid.

The new Submission and Opening of Bids is now scheduled on 18 June 2019, but this was later moved to 25 June 2019.

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25 June 2019:

The DND released Supplemental Bid Bulletin No. DND/PN-FAP2C2-18-R2-01 dated 25 June 2019, wherein it mentioned that based on the Pre-Bid Conference held on 18 June 2019, and a letter from Nammo Palencia of Spain dated 19 June 2019, the Submission and Opening of Bid Envelopes (SOBE) is being moved from 02 July 2019 to 16 July 2019.

The SBB from the DND can be accessed through the link provided HERE.

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15 October 2019:
It appears that the 4th bidding attempt for the project proceeded as planned last August 2019. But MaxDefense has not received information yet on complete list of bidders, nor who is the lowest bidder.

So far MaxDefense was told that European manufacturer Nammo was among those that submitted a tender, while expected tenderer from South Korea Poongsan did not submit a tender.

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05 November 2019:
MaxDefense sources confirmed that only Nammo submitted a bid for the project and was declared the Single Calculated Bidder. It has already passed the Post Qualification Inspection (PQI) held last month, and is now expected to receive the Notice of Award (NOA) anytime soon.

It is believed that the DND would be issuing the NOA soon as the year is almost ending and the budget for the project must be assigned to the winning bidder before the budget allocation expires.

Nammo produces medium-caliber ammunition including 30mm ammunition. Photo from Defense24 website.

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17 December 2019:

The Notice of Award (NOA) for the Frigate Lot 2C Sublot 2 - 30mm Ammunition Acquisition Project has finally been released in favor of Nammo Palencia S.A, which is the Spanish branch of the Norwegian ammunition manufacturer.

The NOA, dated 14 November 2019 and received on 04 December 2019 by Nammo Palencia's representative, indicates the contract price submitted to be at Php

The copy of the NOA released by the DND last November 2019. Photo screengrabbed from documents from PhilGEPS.
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10 January 2020:

The DND has released the Notice to Proceed (NTP) of the project to Nammo Palencia S.A. as shown on the document dated 13 December 2019 and posted by PhilGEPS recently.

The release of NTP officially marks the start of the delivery schedule and deadlines, which means that with the delivery happening within 360 days from NTP issuance, we can expect that Nammo Palencia S.A. could deliver the goods on or before 08 December 2020.
The NTP as released by the DND last 13 December 2019. Photo screengrabbed from documents taken from PhilGEPS.

With this, MaxDefense sees a problem: since the first frigate, the future BRP Jose Rizal (FF-150) is expected to be delivered by mid-2020, the ship would not have any 30mm ammunition for it start training. The Philippine Navy is expected not to have 30mm ammunition in their stocks since they have not used such caliber before. Unless the Philippine Navy bought another batch separately at an earlier date.

Only other possibility for the Philippine Navy to start preparing for the use of the Aselsan SMASH 30mm gun on the frigates is if the US Navy would provide some of their 30mm ammunition to the Philippine Navy under the Enhanced Defense Cooperation Agreement (EDCA) provisions that include sharing of supplies.\

Or if Nammo Palencia could actually supply the goods far earlier than expected, considering 30mm ammunition is not really a special product and Nammo Palencia may have already produced a huge percentage of the Philippine Navy's order even before the contract was awarded to them.

Surprising that the DND actually took time to have this project awarded considering that they knew the frigates would be arriving earlier than the deadline they imposed to the winning bidder, and that the Philippine Navy does not have a stock of 30mm ammunition since its standard medium caliber gun is the smaller 25mm round.

The successful release of NTP and Contract Signing for this project marks a major milestone as this project is among the few remaining Horizon 1 phase projects that has not been completed yet until now.

The Aselsan SMASH 30mm gun. Each Jose Rizal-class frigate has one, and these are the only guns in the Philippine Navy that uses 30mm rounds. Credits to original source of photo.

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First edit and release: 05 March 2019
Copyright MaxDefense Philippines / Philippine Defense Resource.






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