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Truck Troop Carrier, Light Acquisition Project (2021) of the Philippine Army

The Philippine Army has raised a requirement for 90 new Light Troop Carrier Trucks that would be acquired through the Philippine Army's Government Appropriations Act (GAA) funding under Fiscal Year 2021.

This is not one of the usual truck procurement projects of the Philippine Army that were included in the AFP Modernization Program, but instead would be procured using its own annual funding.

Since the trucks are non-standard models, it is highly possible that the trucks would be used by a specific unit rather than distributing them to combat units which are already using the standard M35 and KM250 6x6 2 1/2-ton troop carrier trucks.

While the DND mentioned the trucks to be from URAL, there is a possibility that the trucks are actually smaller and made by GAZ due to pricing and classification. Photo credits to original sources.

Project Summary:

Trucks Troop Carrier, Light Acquisition Project (2021):

Note: Edited as of 31 May 2021.
 
* End User: Philippine Army (multiple units)

Quantity: 90 units


* Modernization Phase:
 GAA 2021 Procurement Projects of the Philippine Army


* Project ABC:
 Php324,000,000.00


Acquisition Mode: Public Bidding

* Source of Funding: Government Appropriations Act (GAA) 2021 funding of the Philippine Army

* SARO Release/s: 
TBA


* Winning Proponent: Conequip Philippines Inc.


* Product for Delivery: Ural or GAZ 4x4 trucks


* Contract Price: Php202,905,000.00


* First post by MaxDefense: 08 May 2021 


* MaxDefense Searching Hashtag: #PATrucksTroopCarrierLight2021Acquisition


* Status: Project was implemented through Public Bidding, with SOBE held on 11 January 2021. Conequip Philippines was declared the Lowest Calculated and Responsive Bidder. MaxDefense PH believes truck to be supplied is GAZ Sadko Next based on the unit price of Php2,254,000.00 per truck, which is cheaper than the unit price for the GAZ Sadko supplied to the PNP-Special Action Force in 2019 @ Php3,220,000.00 each. DND confirmed trucks are Ural brand, and will be delivered to the Philippine Army within 180 days from NTP release.

Overview:

The project to acquire 90 new trucks through public tender and by using the Philippine Army's own annual operating budget is something new for the Philippine Army.

This is due to most of its truck procurement done via the Philippine Army's Modernization Program, or through the AFP Modernization Program, and is usually acquired through Government-to-Government (G2G) process. In the past decade, most if not all new truck procurements were supplied by Kia Motors of South Korea in the form of the Kia KM-series trucks.

Currently, the Light Troop Carrier Truck of the Philippine Army is the Kia KM450 4x4 truck, which is a modernized version of the 1960s era M715 4x4 truck from the US.

There are a few potential reasons to believe why the Philippine Army decided to run a different procurement program for new Light Troop Carrier Trucks rather than order again from South Korea's Kia Motors:

1. The introduction of the Korea Light Tactical Vehicle (KLTV) to eventually replace the production of the KM450 truck for the Republic of Korea Army could be a potential problem to the continuous supply of KM450 trucks to the Philippine Army, and to the Armed Forces of the Philippines in general.

The KLTV is more of a light tactical vehicle  similar to the AM General Humvee rather than a simple utility truck.

Based on Kia Motor's website for military trucks, the KM450 series is still there, so its replacement by the KLTV is not yet happening but will only happen in the near future.

2. The KLTV is more expensive than the KM450 that it is replacing. Based on the previous contract between the DND and the Korean Government on behalf of Kia Motors, the KM450 is priced at around Php3.15 million each. 

According to MaxDefense PH sources, the KLTV is upward of Php4.5 million each.

Based on the project's details, the Philippine Army has budgeted around Php3.6 million for each truck, while conducting public tender for the acquisition.

3. The Philippine Army is urgently in need of new trucks, and procuring them through standard procurement process like Public Bidding would allow a quicker route.

In comparison:

We try to compare the new acquisition of Light Troop Carrier Trucks to previous acquisitions of the Philippine Army and other armed services of the Philippine government.

a. Kia KM450 truck - considered as Light Troop Carrier Truck per Horizon 2 phase of RAFPMP. Based on 2018 contract between DND and Korea Trade Investment Promotion Agency (KOTRA)

Php677,247,850.00 for 215 Kia KM450 trucks, or a unit rate of Php3,150,000.00 per unit.

Kia KM450 1 1/4-ton trucks used as armed troop carriers by the Philippine Army. 

b. Kia KM250 truck - considered as Medium Troop Carrier Truck per Horizon 2 phase of RAFPMP. Based on 2018 contract between DND and KOTRA.

Php1,859,984,500.00 for 310 Kia KM250 trucks, or a unit rate of Php6,000,000.00 per unit.

A Kia KM250 2 1/2-ton truck of the Philippine Army. Photo credits to Wikimedia Commons.

c. GAZ Sadko truck - considered as Medium Troop Carrier Truck per procurement by the PNP Special Action Force. Based on 2019 contract between PNP-SAF and ConEquip Philippines.

Php119,128,800.00 for 37 GAZ Sadko 4x4 trucks, or a unit rate of Php3,220,000.00 per unit.

A GAZ Sadko 4x4 truck of the PNP Special Action Force. Photo credits to original source.

d. Ural Next trucks - considered as Heavy Troop Carrier Truck per procurement by the PNP Special Action Force. Based on 2108 contract between the PNP-SAF and ConEquip Philippines.

Php85,575,000.00 for 10 Ural Next 42306 trucks, or a unit rate of Php8,557,500.00 per truck, although this includes 2 trucks modified into Command and Control trucks with airconditioned and fitted cabin.


Based on the Contract Price submitted by ConEquip Philippines for the Philippine Army's requirement of 90 vehicles, it appears that each truck is around Php2,254,000.00.

That is far cheaper to the Kia KM450's year 2019 rate, or even the GAZ Sadko's year 2019 rate.

Project Awarding:

The project was awarded to ConEquip Philippines, which is the local distributor of GAZ and URAL brands of Russian trucks. The NOA was released in favor of ConEquip Philippines on 11 February 2021.

As of 30 May 2021, no confirmation onf Contract Signing, or release of Notice to Proceed (NTP) has been reported by the PhilGEPS website.

PhilGEPS reporting on status of the Philippine Army's Truck Troop Carrier Light Acquisition Project. Photo screengrabbed from PhilGEPS website.

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U P D A T E S:
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30 May 2021:

The DND has released a statement discussing the acquisition of 90 trucks, which pertains to the Truck Troop Carrier, Light Acquisition Project of the Philippine Army for year 2021.

According to DND Spokesman Dir. Arsenio Andolong, "the trucks will boost the Army's capability to transport personnel and materiel wherever they are needed, whether it be in combat or humanitarian assistance and disaster response".

The DND mentioned that the trucks will be made by URAL, and will be delivered by ConEquip Philippines, which received the Notice of Award for the project on 11 February 2021.

The trucks would be delivered within 180 calendar days from receipt of Notice to Proceed (NTP) or Opening of Letter of Credit.

So far, it has not mentioned if the NTP has been released in favor of ConEquip Philippines.

Upon MaxDefense PH's check with PhilGEPS website as of 31 May 2021, there is no Contract signed yet between the Philippine Army and ConEquip Philippines.






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First edit and release: 31 May 2021
Copyright MaxDefense Philippines / Philippine Defense Resource

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