South Korea Fighter Jet Bidding Extended Again

South Korea’s Defense Acquisition Program Administration (DAPA) has once again extended final bidding on the F-X phase III fighter competition for at least one more week. 

The Lockheed Martin F-35 Lightning II, Boeing’s F-15 Silent Eagle EADS’ Eurofighter Tranche 3 Typhoon are currently in competition against each other hoping to secure the $7.3 billion contract to sell 60 aircraft.

“We will resume receiving offers from Tuesday,” said DAPA spokesman Baek Youn-hyeong said. “We have extended the bidding in the belief that there is more room to push costs down.” 

But he did not confirm whether the three participants placed bids that exceed Korea’s procurement budget. 

 Yonhap News reported that although the DAPA carried out more than 30 bidding sessions, none of the three companies met budget requirements.

Procurement office plans to set no time limit for the new bidding, meaning that it will not be over until at least one fighter jet satisfies the budget target, according to reports.

According to the Defense Security Cooperation Agency (DSCA) in April, a potential foreign military sale (FMS) of 60 F-35 steal jets and associated equipment, parts, training and logistical support would cost an estimated $10.8 billion, or 12.4 trillion won. 

Korea was supposed to pick a supplier last October, but last year’s presidential election delayed a decision until this month, which coincidently postponed DAPA’s plan to bring in new aircraft in 2016 until August 2017. 

With the third phase of the F-X program on hold again, there is speculation that the delayed timeline might create a void in the Air Force’s strength. 

But the DAPA said that Korea is capable of dealing with postponing the delivery schedule.

“We have some leeway, enough to adjust the schedule in the selection process unless the procedure drags on for too long. But we are on track to meet the timeline,” Baek said.