"Defense News" reports that a turf war is liable to break out between Israel Military Industries Ltd. (IMI) and Rafael Advanced Defense Systems Ltd. in a major international competition by the Ministry of Defense for a second-generation active protection system for combat vehicles, potentially worth billions of shekels in orders, after the Ministry of Defense failed to force the two companies to cooperate.
According to "Defense News", Rafael produces the Trophy first-generation active defense system, and IMI has developed the Iron Fist. The request for information in the tender is scheduled to be published in early spring.
The Ministry of Defense is apparently planning an international tender for the new active protection systems, after failing to persuade Rafael and IMI to jointly produce a system. The ministry wants a single system for both the Merkava Mark IV tanks and Namer (Leopard) armored personnel carriers (APCs), reversing an earlier plan to equip Merkavas with the Trophy and Leopards with the Iron Fist.
"Defense News" says, "For more than two years, Ministry of Defense officials have implored executives from the two state-owned firms to join forces on a common, second-generation system that provides a cheaper and more effective answer to future threats than the first-generation Trophy. But Rafael has insisted on taking the lead in any second-generation system while IMI argues that its Iron Fist embodies next-generation requirements and is only a year or so away from initial fielding."
The magazine says, "The Ministry of Defense's 2010 directive to merge attributes of Trophy and Iron Fist into a common system for all ground vehicles reversed earlier plans for parallel buys of Trophy-equipped tanks and Iron Fist-protected troop carriers. Current plans for an international tender appear to comply with findings from an Israeli government investigation last May that called on Ministry of Defense to conduct an 'urgent and orderly' competition to equip Leopard carriers with the much-needed protection."
"Defense News" adds, "The May 1 report by former State Comptroller Micha Lindenstrauss criticized acquisition flip-flops, statutory infractions and its inability to manage industry infighting for costly and troop-threatening delays in fielding APS-equipped troop carriers. The report noted that after nearly a decade of parallel development of rival systems - and two years of failed attempts to forge cooperation between the two suppliers - that Leopard APCs continue to roll off production lines without the required active protection."
"Defense News" quotes a senior Ministry of Defense source as saying that it could take about four years to ready a second-generation active protection system for operational fielding. In the meantime, he insisted that all new Merkava Mark 4s and Leopards would be equipped with Trophy. He said, “Our directive is to have commonality with the existing system [Trophy], and not to split the pie in different pieces." He added, “In parallel, if the companies are not willing to cooperate, we will come out with a request for information in March 2013 for Generation B."
Rafael and IMI declined to respond to "Defense News", which quotes several industry executives claiming that tender was a last-ditch attempt by the Ministry of Defense to forge cooperation between competing firms.
"Defense News" quotes an IDF officer as saying that he was unaware of current procurement plans to equip Leopard APCs with the Trophy, and that a follow-on contract now being negotiated with Rafael is strictly for new Merkava Mark 4 tanks. He added that the IDF had provided a Leopard to IMI in May for integrating the Iron Fist, and that the integration and testing should be completed by the end of the year, after which the Iron Fist-equipped Leopard would be put through rigorous IDF-managed field tests.
"By April 2013, we’ll have a very good understanding of what Iron Fist offers to the Leopard,” said the officer adding, “The minute we go for a competition, the one who has the best, most cost-effective solution to offer will take the cake.”
Published by Globes [online], Israel business news - www.globes-online.com - on September 5, 2012
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