Korean F-X decision pushed back yet again…

Korea Times:

F-X Project Bids Exceed Target Price

By Sohn Suk-joo
Staff Reporter

South Korea yesterday said that its first round of price negotiations with four foreign bidders over its $3.2 billion fighter procurement project was aborted.

“The talks broke down because their offer prices were too high. We will hold another round of bidding on Jan. 24,” said Chae Woo-seok, deputy commander of the Defense Procurement Agency (DPA), which is affiliated with the Defense Ministry.

The offer prices far exceeded target prices set by the DPA, Chae explained, saying that price negotiations will have to continue on several occasions unless the foreign bidders lower prices for the F-X fighter project, which is aimed at providing the Air Force with 40 next-generation jets by 2008.

The first round of bidding for the fighter project was held at the DPA office on Monday.

The F-X project bidders are U.S.’s Boeing Co., France’s Dassault Aviation, Russia’s Rosovoronexport and Eurofighter International, which combines firms from Britain, Germany, Italy and Spain.

The four task force teams, which reportedly arrived in Seoul last week, could not be reached for comment on Monday’s bidding session.

The Defense Ministry plans to complete price negotiations in January and cost-effectiveness analysis in February. It will decide on a final winner of the jet project by the end of March this year, but ministry officials did not rule out the possibility of the project’s further delay.

“If price negotiations drag on and cost-effectiveness analysis is prolonged, the decision will be further delayed,” a ministry official said on condition of anonymity.

The date for the F-X decision has been shifted to March this year from its original December 2001 deadline.

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At this rate, the competing aircraft will be out of production before a decision is reached! 🙁