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Sunday, February 16, 2020

Man-Portable Air Defense System (MANPADS) Acquisition Project of the Philippine Army

In line with the Philippine Army's modernization program, it has raised the requirement to equip its forces with air defense systems to protect its units from aerial threats, while also forming the base for an expanded air defense capability in the future.

To meet the requirement, the Philippine Army has included the Man-Portable Air Defense System (MANPADS) Acquisition Project under its Horizon 2 phase Priority Projects.

An example of a SHORAD system being looked at by the Philippine Army for their initial air defense artillery units. Photo from MBDA website.


Project Summary:


Man-Portable Air Defense System (MANPADS) Acquisition Project

Note: Edited as of 30 November 2023.

* End User: Philippine Army (Army Artillery Regiment)

* Quantity: 2 batteries, increased.

* Modernization Phase: Horizon 2 Phase Priority Projects of RAFPMP

Project ABC: Php2,275,200,000.00

* Acquisition Mode: TBA

* Source of Funding: From other sources, to be paid via Multi-Year Obligatory Allocations (MYOA).

* SARO Release: TBA

* Winning Proponent: TBA

* Product for Delivery:
    - 2 batteries worth of MANPADS system

* Contract Price: TBA

* First post by MaxDefense: 14 October 2018

* MaxDefense Searching Hashtag: #PAMANPADSAcquisition

* Status: Procurement phase ongoing. Shortlisted products were the MBDA Mistral and LIG Nex1 Chiron. Decision is expected to be made before mid-2020, and an award made by 3rd quarter 2020 or earlier. Project was placed at the backburner due to lack of funding, and did not reach awarding stage by the end of 2022 which is also officially the end of Horizon 2 phase. Project is CANCELLED but re-emerged as the Short Range Air Defense System (SHORADS) Acquisition Joint Project of the Philippine Army, Philippine Navy (Marines) and General Headquarters - Armed Forces of the Philippines as part of Horizon 3 Phase 1. The project remains under the Re-Horizon 3 after a review by the DND under orders of Defense Sec. Gilberto Teodoro Jr. with only difference in programming period.



Overview:


The Philippine Army has raised the requirement to have at least 2 air defense batteries to become the initial component of a modern unit tasked to defend Philippine Army units from aerial threats.

In this regard, the Philippine Army also raised two new Air Defense Artillery Batteries that will become the core units of a future Air Defense Artillery Battalion under the Army Artillery Regiment. 


According to the Philippine Army:

“(An) Air Defense Battery is designed to provide air defense for Army units, areas, and installations against unmanned aerial vehicles or remotely-piloted vehicles as well as fixed and rotary aircraft…”

Another one infotarp displayed by the Philippine Army during the event. The system on the photo is the MBDA Mistral using the ATLAS mounting. Photo shared exclusively to MaxDefense by a community member.

It would be remembered that as early as 2016, MaxDefense has posted reports on the Philippine Army training on Air Defense Artillery with the US Army in Fort Sill in Oklahoma, in preparation for these new capabilities.

The Philippine Army used to have air defense units using anti-aircraft guns received from the US government after World War II, including M45 Quadmounts using 12.7mm machine guns. 


Previously the PA had air defense assets like the M45 Quadmount as seen here used in the Korean War by PEFTOK contingent.

This time, the Philippine Army will be initially using missile systems starting with Short-Range Air Defense (SHORAD) missile systems  before progressing to longer-ranged air defense systems.

Unknown to many, while the Philippine Army unofficially do not have air defense units or assets prior to the 1st and 2nd Air Defense Artillery Batteries, the Philippine Army is safekeeping the air defense assets of the Presidential Security Group (PSG) which has MANPADS in its inventory including the MBDA Mistral and FIM-92 Stinger in limited numbers.

With the project failing to reach a decision to award to any proponent, the project was cancelled in its current form, budget and quantity, and re-emerged as the Short Range Air Defense System (SHORADS) Joint Acquisition Project between the Philippine Army, Philippine Navy (Marines) and the General Headquarters - Armed Forces of the Philippines as part of the Horizon 3 Phase 1 of the RAFPMP.

This was later slightly revised under the Re-Horizon 3 Phase as the Horizon 3 Phase underwent re-review under orders from Defense Sec. Gilberto Teodoro Jr. Only slight changes were made to accommodate the programming of the project.

There is only a few changes on the specifications between the original and new project, although the main difference will be on the budget and quantity to be procured, which is now larger to accommodate the requirements of all 3 end users.

According to the Re-Horizon 3 Phase documents received by our parent page MaxDefense Philippines, the aim of the SHORADS Joint Acquisition Project for the General Headquarters AFP is for "Air Defense of Critical Infrastructure and High Value Targets" which require "Mobile Anti-Aircraft / Anti-Surface Capabilities". Meanwhile there are no changes in the Philippine Army requirements which is for "Air Defense of Army and Divisional elements, areas or installation". 



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U P D A T E S:
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14 October 2018:

MaxDefense first mentioned about the project of the Philippine Army to acquire Man Portable Air Defense Systems (MANPADS) as one of its priority projects.

This would be separate from air defense systems being acquired by other AFP service branches, like the Philippine Air Force's Ground-Based Air Defense System (GBADS) and the Philippine Navy's Shore-Based Air Defense Missile System (SBADMS).


The Philippine Army requirement would allow them to defend ground formations / field units and bases against low-flying aircraft and helicopters, unmanned aerial vehicles, and other low-flying aerial threats.


MANPADS could also be used to defend from aerial threats during huge events like world leader gatherings, sports Olympics, concerts, political rallies, and others. Photo for reference only.

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01 November 2019:

MaxDefense received several queries regarding a post made by an FB-based South Korean defense page on the review of export approval by South Korea's Defense Acquisition Program Administration for TPS-880K local air defense radar and Chiron KP-SAM air defense system to the Philippines.

Since the source of the news is from South Korea, obviously it tackles on the South Korean side of things. So MaxDefense will discuss the Philippine side on the issue, us being more knowledgeable on what's happening in the AFP Modernization as well as on what's happening behind the Philippine defense and military bureaucracy.

Currently, there are three air defense projects in the Horizon 2 phase of the RAFPMP, but only the Philippine Army is requiring a low level air defense system under its Man-Portable Air Defense System (MANPADS) Acquisition Project. This project has requirement that fits the capabilities of the LIGNex1 Chiron VSHORAD system.

Since the information from the South Korean side was said to be sourced from DAPA, most likely it is true that the South Korea is already looking at approving any export license to the Philippines. This could only happen if the Philippine side, most likely the Department of National Defense (DND) already sent a Letter of Request (LOR) to its South Korean counterpart to start looking at the possibility of exporting it to the Philippines.

Sending in an LOR means that a selection shortlist was already made by the Philippine Army's Technical Working Group (TWG) and Defense Acquisition System Assessment Team (DASAT) for this project. Thus its possible that LIGNex1's Chiron KM-SAM short range air defense system and the TPS-880K local air defense radar are already among the those in the top selection / shortlist.

Upon checking with sources, MaxDefense was told that the the project has not been finalized yet, and the Chiron-TPS-880K combo is competing with other products mostly from Europe. Also apparently the project has not received an approval from the GHQ AFP yet, which is part of the approvals ladder, although it will soon. While LIGNex1's offer has a high chance of getting the final selection, chances of other proponents bagging it instead of LIGNex1 still remain high.



The TPS-88K radar (top) and the Chiron SHORAD system (above) appears to have been offered as a package by the South Korean government to meet the requirements of the Philippine Army's MANPADS Acquisition Project. Credits to original sources of the photos.

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15 November 2019:

MaxDefense confirmed in its social media post that Russia's 9K333 Verba short range air defense system was among those included in the Philippine Army's evaluation for MANPADS, but it did not reach shortlisting. 


Instead, only MBDA's Mistral and LIG Nex1's Chiron were shortlisted by the Philippine Army's Technical Working Group (TWG) for the project, for still unknown reasons.

The Russian 9K333 Verba, which is an improved version of the earlier Igla system. Credits to original source of photo.

MaxDefense received word from sources that the Verba actually has superior performance even compared to the Mistral and Chiron, but other reasons were said to have been raised in removing it from the final selection. MaxDefene believes that CAATSA could be a major issue, as the same has been happening to several projects where Russian products were considered.

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17 January 2020:

As posted on MaxDefense's blog entry regarding the topic, which can be accessed through the link below:

"PH Army to Acquire ATMOS SPH, Eyes MBDA Mistral & LIGNex1 Chiron SHORAD as it Activates 2 New Units" - first posted on 17 January 2020.


The activation of the 2nd Air Defense Artillery Battery is in line with the Philippine Army's plan to build-up cadres and operational units to operate incoming air defense assets.

The Philippine Army has an ongoing project to acquire such systems under the Philippine Army Man Portable Air Defense System (MANPADS) Acquisition Project, which is part of the Horizon 2 phase of the RAFPMP. The project involves the acquisition of 2 batteries worth of MANPADS with a budget of around Php2,275,200,000.00 (around US$44.6 million).

MaxDefense sources confirmed that the Philippine Army is looking at two models, the French MBDA Mistral,  and South Korean LIGNex1 Chiron short range air defense missile systems. Both missile systems are similar in capabilities as the Chiron was said to have been developed from the Mistral but using South Korean technology and content, and both having an effective range of around 6 to 7 kilometers. MaxDefense will discuss about both systems in a future blog or resource page entry.



The MBDA Mistral in ATLAS mounting (top) and LIGNex1 Chiron (above). Photo taken from MBDA website for Mistral, and Indian Defence Review for Chiron.

It still remains to be seen which one will be selected as the Philippine Army’s Technical Working Group (TWG) for the project is still conducting their evaluation as of this writing, although MaxDefense was told that competition is tight between MBDA and LIGNex1.

Standing-up both batteries for the Air Defense Artillery is already an indication that the project is coming up soon, with MaxDefense expecting a decision and contract signed by 2020. 

Based on the Philippine Army's programming, they expect the delivery of the weapon systems by 2024, while also activating the 1st Army Air Defense Artillery Battalion also by 2024.

It still remains to be seen if longer ranged air defense systems will be acquired as part of the Horizon 3 phase of the RAFPMP, which also means activating additional air defense units.


Activation of the 2nd Air Defense Artillery Battery during ceremonies last 15 January 2020. Photo ftom Philippine Army.

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19 June 2020:

Looks like the Army Artillery Regiment now also has a mock-up of a vehicle-mounted man-portable air defense system (MANPADS), which they presented during their 13th founding anniversary.

MaxDefense previously reported that based on the Philippine Army's evaluation, they have shortlisted the MBDA Mistral and LIGNex1 Chiron MANPADS to fulfill the requirement under the Philippine Army's MANPADS Acquisition Project.

MaxDefense believes that the Mistral may be more palatable to the Philippine Army due to commonality with existing MANPADS.


A mock-up of a vehicle-mounted MANPADS, similar to those based on the Mistral or Chiron VSHORAD systems. Photo from King of Battle (Army Artillery Regiment) official Facebook page.

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30 June 2023:

The Philippine Army's Army Artillery Regiment posted a video during its 125th Anniversary last 27 June 2023, showing their requirements for a Short Range Air Defense System (SHORADS).

Among those mentioned are what we assume is the base requirements for the system, which includes a Minimum Radar Range of 25 kilometers, a Missile Range of between 6 to 8 kilometers, Altitude of 1,500 to 3,300 meters, Speed not less than Mach 2, Firepower /Warhead of between 2 to 4 kilograms using proximity and impact fuze.

This is not too different from the original specs of the MANPADS Acquisition Project, and its possible that both the MBDA Mistral 2 and the LIG Nex1 Chiron could still be among the top choices.

Our parent page MaxDefense Philippines confirmed that the MANPADS Acquisition Project did not reach a certain degree of procurement phase by the end of the Horizon 2 phase in 31 December 2022, and is being carried over to the Horizon 3 phase under a different project name, and changes in the project's coverage and requirements which will be discussed later on.


Screen grabbed from the AAR's video.


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30 November 2023:

As the Horizon 3 phase of the RAFPMP has been ordered for re-review by Defense Sec. Gilberto Teodoro, the project now appears to be clearer in terms of scope and requirements.

Our parent page MaxDefense Philippines confirmed that what was previously posted about the changes in the project from MANPADS Acquisition to SHORADS Acquisition is indeed correct.

But there are changes in the Horizon 3 Phase compared to the original Horizon 2 project, as the project is now a joint acquisition between the Philippine Army, Philippine Navy (Marines) and the General Headquarters of the Armed Forces of the Philippines.

The quantity and budget has also been increased, from 2 batteries for the Philippine Army in the Horizon 2 phase, to far more than that for all 3 end users. 

The Philippine Army and Philippine Marine Corps intend to use the SHORADS for Air Defense of manoeuvre units, as well as bases and installations. Meanwhile the GHQ AFP intends to have some of the SHORADS for air defense of critical infrastructure and high level targets.

We will be posting more details about this project as the Re-Horizon 3 Phase is approved by Pres. Ferdinand Marcos Jr. either by December 2023 or early 2024.


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First edit and release: 16 February 2020
Copyright MaxDefense Philippines / Philippine Defense Resource.




Saturday, February 15, 2020

ORD PABAC-045-19 Assault Rifle 5.56mm M4/AR-15 Platform Acquisition Project (2019) of the Philippine Army

 The Philippine Army (PA) continues its acquisition of more 5.56x45mm assault rifles based on the M4 / AR-15 platform as part of its 2019 budget.


Due to its similarity to an earlier project, MaxDefense Philippines and Philippine Defense Review decided to name this project as the Assault Rifle 5.56mm M4/AR-15 Platform Acquisition Project (2019) of the Philippine Army, with emphasis on adding "2019" to differentiate from the one started in 2018, and to anticipate future purchases by the Philippine Army.


Philippine Army troops using M4/AR-15 platform. Credits to original source of photo.

Overview:

As the Philippine Army continues to expand in size and improve its standard infantry weapon systems by moving away from old M16A1 rifles, it has embarked on the acquisition of more 5.56x45mm assault rifles to cover these requirements. 

After the massive acquisition of rifles in the last few years which resulted to the delivery of the Remington R4A3 5.56x45mm rifle, the Philippine Army has now started on yearly acquisitions just to cover for any gaps in the firearms requirements within the organization.

For 2019, with the plan to expand the manpower of the Philippine Army beyond its usual size, it found itself in need of additional 5.56mm rifles. And like what they did in 2018, they decided to go for an acquisition using its own budget for the year instead of going through the AFP Modernization Program that has already been approved in 2018. 


Project Summary:

Assault Rifle 5.56mm M4/AR-15 Platform Acquisition Project (2019)

Note: Edited as of 10 December 2021.

* Project Number: ORD PABAC-045-19

* End User: Philippine Army (unspecified units)


* Quantity: 11,551 units (original), 12,412 units (final)

* Modernization Phase: N/A, Philippine Army procurement outside RAFPMP for 2019

* Project ABC: Php540,779,107.70

* Acquisition Mode: Public Bidding

* Source of Funding: Philippine Army GAA 2019

* SARO Release: N/A

* Winning Proponent: Taurus Armas (Brazil)

* Product for Delivery: Taurus T4 5.56x45mm rifle, 14.5" barrel

* Contract Price: approx. US$7.3 million 

* First post by MaxDefense: 15 February 2020 (this post)

* MaxDefense Searching Hashtag: #PAAssaultRifle556Acquisition

* Status: Taurus Forsa through its local representative was declared lowest bidder, but  failed Post Qualification Inspection and was post-disqualified. Second lowest bidder is Armscor Global Defense - Emtan JV, with PQI scheduled on 04 March 2020. Project declared cancelled as of 03 August 2020, but was restarted by 4th quarter 2020. Awarded to Taurus Armas as of January 2021. Contract signed 2nd quarter 2021. Pre-delivery inspections and testing passed as of 25 September 2021. Delivered to the Philippine Army in October 2021, and inducted to the Philippine Army as of late November 2021. First units confirmed to be handed-over to 99th Infantry Battalion. PROJECT COMPLETED.

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U P D A T E S:
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15 February 2020:

MaxDefense received confirmation that the Submission and Opening of Bid Envelopes (SOBE) for this project pushed through last 03 February 2020, with Brazil's Taurus Armas said to have submitted the lowest bid with the Taurus T4 5.56x45mm rifle.

Post Qualification Inspection (PQI) appears to have not taken place yet, although it is possible that this would happen soon. Until a Notice of Award is released in favor of Taurus, it is still highly possible that other bidders may have a chance at the project.


The Taurus T4 is the Brazilian arms manufacturer's first foray into the AR-15 platform. It is currently in use by Brazilian law enforcement and military units, while a semi-automatic version called the T4SA was just introduced recently to the American civilian arms market.

Due to being a new product, not much has been said about the Taurus T4.

The Taurus T4 5.56x45mm rifle, which is based on the AR-15 design. Photo taken from Pinterest.

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04 March 2020:

MaxDefense received confirmation that Taurus Armas failed to pass the Post Qualification Inspection (PQI) conducted by the PITC's Bids and Awards Committee and Philippine Army officials. No mention was made on the reason of failure. This means that Taurus Armas is considered post-disqualified from the tender.

The second lowest bidder will have the chance then to undertake PQI. MaxDefense learned though sources that the second lowest bidder was Armscor Global Defense, which is partnered with Israel's Emtan Carmiel Ltd. and has offered their MZ-4 5.56mm AR-type assault rifle. Readers should be familiar of this family of rifle, as the piston version MZ-4P were sold by the thousands to the Philippine National Police (PNP) by Armscor Global Defense is the past 3 years and reported by MaxDefense in its updates on PNP modernization and procurements.

PQI is said to have started today 04 March 2020, and will take several days. MaxDefense will monitor developments if Armscor-Emtan can pass the PQI and bag the project.


The Emtan MZ-4 5.56x45mm assault rifle, which is their version of the AR-15. The Philippine Army is interested in the 14.5" barrel option. Photo taken from Emtan Karmiel's website.

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02 August 2020:

MaxDefense received information from sources that the project has not moved forward since early this year, and while we have not receive any confirmation or proof to show, sources mentioned that the project might have failed, and it remains to be seen if a rebidding would be implemented.

It also appears to be true since MaxDefense has been receiving enquiries about the project from several people who appear to be related to the bidders of the project, to determine if their info matches that of ours.

Based on our experience in dealing with such groups or people, it only means that something went wrong with the last company that was in undergoing evaluation process, which is Armscor Global Defense, which was offering the Emtan Karmiel MZ-4 rifles from Israel.


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08 August 2020:

The Philippine government's procurement services website PhilGEPS updated the project's status on 03 August 2020 to CANCELLED, which means that our earlier updates on the lack of movement on the project was indeed correct.

We have not receive an update if the last company that underwent Post Qualification Inspections, Armscor Global Defense which offered the Israeli-made Emtan Karmiel MZ-4 5.56x45mm assault rifle, passed or failed the inspections.

Since the project was cancelled rather than failed, there could be other reasons on the project did not push through. One possibility could be the lack of funding from the Philippine Army's side, as the entire AFP has returned some of its annual funding to the Department of Budget and Management (DBM) to assist in COVID-19 response expenditures.

This project, being not part of the AFP Modernization Program, is not covered by Horizon 2 phase funding, and instead is covered by the Philippine Army's 2019 annual funding.



Screenshot from PhilGEPS showing the project's status as cancelled.

With the project declared a failure, it remains to be seen if the project would be re-implemented in another date, considering the poor economic turnout of the Philippines for the first half of 2020, and the poor outlook for the entire 2020 and even 2021.

Nonetheless, the need for more rifles is needed due to the increasing size of the Philippine Army.  


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09 August 2020:

Additional information were provided on the project coming from an industry source.

Apparently, Taurus got disqualified because its Single Largest Contract which is a requirement during Post Qualification Inspections, was deemed ineligible based on the DND-BAC's assessment.

Meanwhile, Armscor Global Defense was also disqualified from the project because its Israel partner Emtan's Net Financing Contracting Capacity (NFCC) was said to be non-compliant to the project's requirements.

While it is the reason for the project to be declared a failure, the decision by the Philippine Army to cancel the project was due to realignment of funds, which means a re-bidding is not being pursued at the moment.

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16 January 2021:

Brazilian arms manufacturer Taurus Armas announced that they were awarded a US$7.3 million deal to supply 12,412 units of Taurus T4 5.56mm rifles for the Philippine Army.

The deal also include local company and Taurus distributor Trust Trade providing support for the rifles in the Philippines.

This is a huge development for the project and for the Philippine Army, as this would be another brand of 5.56mm M4-type rifle in service after the Colt M4 and M4A1, the Remington R4A3, the SIG M400, and LMT SPM14.

No information has been made yet if the contract was already signed, and we are still getting Philippine sources to corroborate the reports coming out from Brazil. 

Since there are no new notices coming out from the Philippine government's procurement system since the project was cancelled back in August 2020, it is possible that the deal was done through negotiated procurement between the Philippine Army and Taurus Armas.

Deals done through Negotiated procurement will not be appearing in the PhilGEPS system.

The quantity appears to be more than what the Philippine Army original requested, with a difference of more than 800 rifles. This is probably due to the huge difference between the budget allocated by the Philippine Army and the contract value offered by Taurus Armas.
 

The Taurus T4 5.56mm rifle. Photo c/o Monch Publishing.

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25 July 2021:

We received confirmation that a contract has been signed a few months ago, and that the project has proceeded, with Taurus Armas starting the manufacturing of T4 rifles for the Philippine Army.

Delivery is expected to be completed before end of 2021.

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25 September 2021:

Taurus Armas, through its local representative Trust Trade Firearms, has announced that Taurus has passed and complete pre-delivery inspection and testing of their T4 5.56mm assault rifle, which was selected by the Philippine Army for the Assault Rifle 5.56mm M4/AR-15 Platform Acquisition Project (2019). 

According to Trust Trade, the tests include Completeness Inspection & Random Sampling, Physical Inspection, Weight & Dimensional Inspection, Trigger Pull Test, Functional Test, Cyclic Rate of Fire Test, Targeting & Accuracy Test, Maximum Effective Range Test, High Pressure Resistance Test, Dust Exposure Test, Mud Immersion Test, Water Immersion Test, Drop Safety Test, Interchangeability Test, Endurance Test and Cook Off Test.

Delivery is expected to proceed anytime soon, considering this milestone.


Taurus team with Filipino officials as it completed pre-delivery inspections and passing of tests of their T4 rifles for the Philippine Army. Photo credits to Trust Trade.

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28 November 2021:

Our parent page MaxDefense Philippines confirmed that the Philippine Army already received the full shipment of assault rifles from Taurus Armas, and has already started ballistic testing. 

The rifles are said to be expected to be distributed to units soon.

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04 December 2021:

he newly delivered Taurus T4 5.56x45mm assault rifles from Brazil have been officially handed over to the Philippine Army's 99th Infantry Battalion during ceremonies held at Fort Magsaysay, Nueve Ecija.

The Taurus T4 was acquired by the Philippine Army to arm newly-formed units and replace M16A1 rifles still used by other units. These would complement the other M4-type rifles used by regular Philippine Army units including the Remington R4A3, SIG Sauer M400 rifles. 

Photo credits to the Philippine Army.






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With the Taurus T4 5.56mm rifles already delivered and formally inducted with the Philippine Army, MaxDefense and Philippine Defense Resource officially consider the ORD PABAC-045-19 Assault Rifle 5.56mm M4/AR-15 Platform Acquisition Project of the Philippine Army as COMPLETED.

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x x x x x x x x x x x 
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First edit and release: 15 February 2020
Copyright MaxDefense Philippines / Philippine Defense Resource.



Tuesday, February 11, 2020

Combat Engineering Equipment Lot 4 - Armored Combat Engineer Earthmover Acquisition Project of the Philippine Army

 


As part of its modernization program and based on the learnings from the Battle of Marawi in 2017 against ISIS-inspired terrorists, the Philippine Army has embarked on the introduction of Combat Engineering Equipment to its arsenal.

Among those for acquisition are a small fleet of Armored Combat Earthmovers (ACE) which could provide combat support in any terrain.

The project, called the Combat Engineering Equipment Lot 4 - Armored Combat Engineer Earthmover Acquisition Project, is part of the Horizon 2 phase Priority Projects under the Revised AFP Modernization Program, and was among those approved in-principle by Pres. Rodrigo Duterte last June 2018.


The Kunduz amphibious armored combat earthmover developed by FNSS of Turkey. Photo credited to uri1974, taken from Wheelsage.org.

Project Summary:

Combat Engineering Equipment Lot 4 - Armored Combat Engineer Earthmover Acquisition Project

Note: Edited as of 21 August 2023


* End User: Philippine Army (unspecified Army Engineering Brigade)

* Quantity: 6 units, potentially more


* Modernization Phase: Horizon 2 Phase of RAFPMP


* Project ABC:
 Php1,200,000,000.00


Acquisition Mode: Government-to-Government (G2G) negotiations between the Philippines Department of National Defense andTurkish Ministry of Defense under the Turkey-Philippines Defense Industry Cooperation Agreement.

* Source of Funding: GAA Funded


* SARO Release: 
   - SARO worth Php177,673,058 (15% initial payment)
   - SARO-BMB-D-22-0009340 worth Php417,801,181.00 dated 07 October 2022 (2nd MYCA payment)
   - SARO-BMB-D-23-0021665 worth Php624,547,428.31 dated 07 August 2023 (3rd and final MYCA payment)

* Winning Proponent: 
FNSS Savunma Sistemleri A.Åž.(Turkey)

Product for Delivery: FNSS Kunduz Amphibious Armored Combat Earthmover (AACE)

* Contract Price: 
Php1,193,717,660.00

* Residual Amount: Php6,282,340.00


* Expected Project Completion: March 2023


* First post by MaxDefense: 
2018

* MaxDefense Searching Hashtag: #PACEEACEEAcquisition

* Status: Originally among those decided as a G2G acquisition with Chinese government. Changed to G2G with Turkish government. Notice of Award (NOA) said to have been released in favor of FNSS as of February 2020, Contract Signing and Notice to Proceed delayed due to COVID-19 restrictions and government's decision to postpone until further notice. Contract signing confirmed to have been made on November 2020.


The FNSS Kunduz armored earthmover in action. Photo taken from Defenseworld's website.

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U P D A T E S:
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11 February 2020:

Turkish defense company FNSS, through its CEO Nail Kurt confirmed that they have signed a deal with the Philippine military for the export of the Kunduz amphibious armored combat earthmover.

The export deal with the Philippines is said to be the first for the product.

Based on MaxDefense Philippines' own monitoring of the AFP Modernization Program, only the Philippine Army has an impending requirement for armored combat earthmovers as part of its Combat Engineering Equipment Acquisition Project.

Previous posts made by MaxDefense on its social media page indicated that there are several lots under the Combat Engineering Equipment project that were supposed to be awarded as part of Government-to-Government (G2G) deals with the United Kingdom and People's Republic of China. Among those originally assigned for G2G with China is the Combat Engineering Equipment project's Lot 2, which calls for the acquisition of six (6) armored combat earthmovers.


Should China be awarded with the project under a G2G deal, it was eyed to be supplied by Poly Group, one of China's largest defense comapnies.

According to MaxDefense sources, the Philippine Army was against the G2G deals with China as they believe that while their products are cheaper, they are wary of the quality of Chinese machinery as well as the logistics and support package that they can offer.

Shifting the deal to a different source was approved last year by Defense Sec. Delfin Lorenzana, and the Philippine Army decided to downselect two models: Turkey's Kunduz from FNSS, and South Korea's KM9 ACE from Hanwha Techwin. Both models were derived from the American M9 Armored Combat Earthmover (ACE), which was the basis of the Philippine Army's own requirement for the Armored Combat Engineer Earthmover.



The Hanwha Techwin KM9 ACE, which was downselected by the Philippine Army together with the FNSS Kunduz. Eventually the Turkish product was selected. Photo taken from Oryx @ Twitter.

Ultimately the Philippine Army's Technical Working Group (TWG) for the project selected the FNSS Kunduz, which appears to be an improved version of the M9 ACE by adding amphibious capabilities, as well as improved armor protection for the crew.

The FNSS Kunduz. Credits to original source of photo.

MaxDefense is still in the process of determining the exact value of the deal. Based on FNSS' own announcement, the contract signing and Notice to Proceed (NTP) is expected to be signed only in 2 months time, or around April 2020.

FNSS also confirmed that delivery is expected by 2021, which means the contract duration should be around 365 days (1 year) which is standard with DND contracts under the AFP Modernization Program. This places the delivery deadline to be around April 2021, although FNSS could deliver initial batches at an earlier date.


FNSS showing the main components of the Kunduz AACE. Photo taken from FNSS' website.

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09 August 2020:

MaxDefense received information from sources that the project is not suspended like some other projects of the AFP Modernization Program, but is still to be pursued within 2020, although is postponed until further notice.

This is because the initial funding for the program was already made in FY2019, and the current funding for it would already be the second of three Multi-Year Contractual Authroities (MYCA). 


It was decided in May 2020 that the project would be among those whose MYCA funding would be continue under FY2020. An allocation of Php910,412,107.19 was made for FY2020 for both Lot 1 (Armored Vehicle-Launched Bridge) and Lot 4 (Armored Combat Earthmover), which constitutes around 33% of the contract price for both projects.

The Turkish government was said to have put some pressure for this project to proceed considering the value of the initial MYCA allocation is not very significant. If pursued, the Philippines will become the first export customer for the FNSS Kuduz.

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05 January 2021

FNSS was reported to have confirmed that the deal between the Philippines and Turkey for the delivery of Amphibious Armored Combat Earthmovers (AACE) for the Philippine Army has proceeded after a contract was signed on November 2020.

The deal was said to be the second under the Turkey-Philippines Defense Industry Cooperation Agreement, which was signed in 2019 between the two countries as Turkey hopes to participate in the modernization program of the Armed Forces of the Philippines.

FNSS is expected to deliver its Kunduz AACE to the Philippine Army, and complete the contract obligations by March 2023.

Testing would be conducted in both countries, before final acceptance by the Philippine Army.


The Kunduz AACE from FNSS. Photo credits to FNSS.


It appears that the delivery will take around 3 years, which is quite lengthy considering the products to be delivered are not as complicated and plentiful. 

It would have been better if the Philippines will have some sort of participation in its production, considering the agreement between Turkey and the Philippines is focued on Defense Industry Cooperation.

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22 August 2023:

The third and final MYCA payment for the project was secured with the DBM's release of a new last 07 August 2023, with SARO-BMB-D-23-0021665 worth Php596,858,829.50.

This means that the delivery of the Kunduz ACE could be happening soon, as the contract stipulates final payment only upon completion of delivery.

 
3rd and final SARO release for the project was made on 07 August 2023. Photo screengrabbed from DBM's SARO listing.


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First edit and release: 11 February 2020
Copyright MaxDefense Philippines / Philippine Defense Resource