180814 mainThe Brazilian Navy has finalized another stage of the bidding process that will select the winner of a contract for four Tamandaré Class corvettes (CCTs). The bidding proposals will be shortlisted, after an analysis, on August 27, 2018 and the winning bid selected on October 29, 2018. The Ukrainian bid proposed by State-owned Ukrinmash company has been praised by Brazilian experts as a “super oferta” that has every chance of getting through to the next stage of the tender process.

 

Ukrainians have passed with confidence through the first stage of the competition

 

The Gestão de Programas da Marinha (DGePM, Navy Program Management Board), in coordination with Empresa Gerencial de Projetos Navais (EMGEPRON, Management Company of Naval Projects) invited 21 companies from 16 countries to submit their bids for the tender, with a reservation that only those companies with at least ten years of experience in warship building would be eligible to compete.

 

The deadline to receive bids expired on June 18, 2018. After preliminary analysis of the bids received, EMGEPRON picked nine of them to proceed to the next phase of the selection process. The nine bidding proposals will now be analyzed from technical, legal, fiscal and budgetary / financial points of view.

 

            The following national and international companies (or consortia) have submitted proposals:

  • Consortium “ÁGUAS AZUIS” – Atech Negócios em Tecnologias S.A, Embraer S.A and ThyssenKrupp Marine Systems GmbH (TKMS, Germany)
    Subcontractors: Ares Aeroespacial e Defesa S.A, Fundação Ezute, Oceana Estaleiro S.A, Omnisys Engenharia Ltda, SKM Eletro Eletrônica Ltda and WEG equipamentos elétricos S.A.
  • + Consortium “FLV” – Fincantieri S.p.A, Leonardo S.p.A (both Italy) and Vard Promar S.A. (a subsidiary of Fincantieri with a shipyard in Brazil)
    Subcontractors:: Fundação Ezute and Ares Aeroespacial e Defesa S.A.
  • BAE Systems (UK), CONSUB Defesa Tecnologia S.A. and Mac Laren Oil Estaleiros Ltda.
  • Ukrinmash (Ukraine), Thales (France) and Arsenal de Marinha do Rio de Janeiro (AMRJ).
  • Consortium “VILLEGAGNON” – Naval Group (France), Enseada Industria Naval S.A. and Mectron S.A.
  • Consortium “DAMEN SAAB TAMANDARÉ” – Damen Schelde Naval Shipbuilding B.V (Netherlands) and Saab AB (Sweden) offering Damen’s Sigma 10514 ship design.
    Subcontractors: CONSUB Defesa e Tecnologia S.A, WEG equipamentos elétricos S.A, and Wilson Sons Estaleiros Ltda.
  • Goa Shipyard Limited (GSL, India), Indústria Naval do Ceará (INACE), Fundação Ezute and SKM Eletro Eletrônica Ltda.
  • Garden Research Shipbuilder Engineers (GRSE, India), ELBIT Systems Ltd and SINERGY Group Corporate.
  • STM, Estaleiro BrasFELS Ltda., Fundação Ezute, THALES, and Omnisys Engenharia Ltda.

 

180814 Tamandaré

"Nine contenders have submitted bids to build and supply four Tamandaré Class corvettes (CCTs) for the Brazilian Navy. What is most interesting is that Russia is not among them, but India is, and there is a consortium of the Ukrainian company Ukrinmash, French Thales and Brazilian Shipyard Arsenal de Marinha do Rio de Janeiro (AMRJ). The required key specifications include a full displacement of 2,790 tonnes, a length of 103.4 m, and a maximum speed of 25 knots."

 

Russian companies had been tentatively planning to compete, but, as predicted by the Media & Consulting Company Defense Express previously, were unable to form a bidding coalition due to the international sanctions imposed on Russia for its annexation of Crimea and aggression in Eastern Ukraine.

 

Ukrainian Bid is Tailored for the Brazilian Navy Requirements

 

Ukraine’s bid, known as the Project 58300 ‘Amazonas’ corvette, is a version of the baseline Ukrainian Project 58280 design developed by the Mykolaiv-based State R&D Shipbuilding Center to meet Brazilian Navy requirements under the Tamandaré ССT Request for Proposal. Upgrades included customized and adapted weapon package and navigation suite, and the addition of advanced radar sensors and EW capabilities supplied by Europe’s leading manufacturers. Overall, the Ukrainian offer fully conforms to the Customer required technical specifications.

 

Ukraine is the only bidder to propose building a complete series of four CCTs at the Brazilian Navy’s Arsenal de Marinha do Rio de Janeiro (AMRJ) Shipyard. This will enble the Customer to closely supervise the vessels building process and to monitor related cost expenditures. Beyond that, this is the only bid to propose that expenditures for construction of the vessels remain structured within the Navy's Finance, which is kind of a cost saving measure.

 

180814 Tamandaré 1

Ukrinmash teamed up with French Thales and Brazilian Shipyard Arsenal de Marinha do Rio de Janeiro to form a consortium for the four-ship Tamandaré project

 

The Ukrainian bid furthermore offers the maximum level of production localization and great involvement of the Brazilian industry at all stages of ship construction.

 

Surprisingly or not, it will entail benefits for the Ukrainian side as well as for Brazil. With Tamandaré ССT–related production operations consolidated at the AMRJ Shipyard (which should be modernized under Offset provisions as specified in the RFP), Ukrinmash will be able to focus efforts on a single production site and to ensure effective planning of production operations without being too much distracted from the prime contract.

 

Beyond that, Ukrinmash, if selected, is ready to grant Brazilian Navy intellectual property rights to the design and its associated engineering documentation and manuals.    

 

The benefit for the Brazilian side is that it will have in its possession the full set of authorized manuals for maintenance, repair and overhaul (MRO) of Project 58300 warships and will be able to build them domestically without the need of third-party’s consent, with Ukrainian experts involved as consultants if needed.

 

But the potential benefits don't end there. Of most interest to the Brazilian Navy might be the Offset portion of the Ukrainian company’s bidding package, which includes the following:

  1. The establishment of an Authorized MRO Service Center in Brazil to provide full maintenance of gas turbines that will be used on Tamandaré corvettes or might be used on other Brazilian Navy’s warships, as well as the transfer of associated R&D expertise, knowledge, and equipment. This will help the Brazilian Navy solve its historic problem with gas turbines, which have been monopolistically supplied by Rolls-Royse.
  2. The transfer of five floating docks, with displacements ranging from 3,500 to 25,000 tons, for servicing corvettes and other classes of warships.
  3. The transfer of the Project 1164 Missile Cruiser Atlant, renovated and demilitarized in Ukraine, to the Brazilian Navy. Once in Brazil, the vessel will be upgraded and modified by Ukrainian experts to make it conform to its new purpose and specifications as might be required by Brazil’s naval command. It is worth noting that the Cruiser Atlant has been stored/moored in fresh water in full compliance with all the required rules and procedures. The Ukrainian side also undertakes to carry out the full set of ship pre-delivery maintenance and demilitarization works, and ensure its transportation to Brazilian shore. In Brazil, the R&D Shipbuilding Center will develop a full package of new manuals and engineering documentation that will incorporate Brazilian Navy’s requirements regarding armament, navigation, communication, combat management, and other capabilities, depending on the types of missions the ship will be used for. This is what makes the Ukrainian bid unique among other bidding proposals.

 

As part of its bidding package, Ukrinmash offers the following technologies for the corvette:

 

- The Thales TACTICOS series combat management system (CMS)

- Ship’s Technical Equipment Management System developed by Zorya-Mashproekt – the company who will also provide its gas turbines and other shipboard equipment for the ships.

 

The Ball’s in Brazil’s Court Now

 

The Ukrainian proposal is so obviously appealing that it will be hard to resist. Ukraine, represented by Ukrinmash, offers all its warship building experience, expertise and capabilities to help Brazil boost its naval warfare capacity. Ukrinmash has already received requests for participation from dozens of businesses seeking a share in the ССT project. With potentially so many industries involved, the Ukrainian bid, if successful, could give a strong boost to Ukraine’s homeland defense capacity and to its economy as well.

 

Even though the bidding proposal by Ukrinmash and AMRJ calls for the highest possible level of local industry participation as demanded by the RFP, the scope of the project is so large that much will be left to be done by Ukrainian industries who have so much in store to offer the Brazilian side. In addition to the direct financial benefit, we can talk about the potential involvement of dozens of Ukrainian enterprises and hundreds of extremely knowledgeable professionals in the CCT project. The will also enable Ukraine -- who is currently experiencing temporary difficulties with funding its own large-scale naval modernization projects -- to provide business for lots of own companies and to have experienced professionals in large multinational Naval projects readily available for work when it is required.

 

Summing it up. Ukraine -- home to one of the world’s strongest industries of shipbuilding -- offers a project that would bring together its experience and expertise, and the most advanced European technologies of armament, navigation, communication and combat management into a fully integrated solution, and it is ready to go as far as to build all the four ships locally at the Brazilian Navy’s AMRJ Shipyard.

 

Whether Brazil will have enough vision to select this truly groundbreaking proposal (with all its potential benefits in terms of cost effectiveness and integrated solutions and approaches offered) will be seen first on August 27, 2018 when the shortlisted winners are to be selected, then on October 29, 2018 when the ultimate winner for the TAMANDARÉ Corvette procurement project will be announced.

 

Valeriy Riabykh,

Defense Express

 

You can find this article in Ukrainian here: УКРАЇНСЬКО-БРАЗИЛЬСЬКИЙ “TAMANDARÉ” – ПРОПОЗИЦІЯ, ВІД ЯКОЇ ВАЖКО ВІДМОВИТИСЬ

 

Defense Express note:

Following are a few facts about Ukraine’s naval shipbuilding industry:

 

Over 70% of the Soviet Navy’s ships with displacement of 3,000 tons and above, including all aircraft and missile cruisers, destroyers, frigates, amphibious assault ships, and corvettes had been built at Mykolayiv-based shipyards.

 

A tremendous shipbuilding capacity had been accumulated in Ukraine over the years of Soviet race for naval dominance. Mykolayiv-based Shipbuilding Yard alone had built 12 missile cruisers with displacement of 11,000 each in less than nine years.

 

There is one fact for those who are seeking a better idea of the size of Ukraine’s shipbuilding industry: naval shipbuilding capacities in the city of Mykolayiv are exceeding those of the enormous shipbuilding empire of Hyundai (Ulsan, South Korea).

 

Despite the ongoing military hostilities in its eastern regions, Ukraine has been increasing its production capacity and remains a reliable partner in international defense technology cooperation.

 

In one of the most recent developments, the Indian company Bharat Heavy Electricas Ltd, in early July 2018, announced it would set up a joint venture with Zorya-Mashproekt to overhaul naval gas turbines in India. The Indian Navy has 22 warships equipped with Ukrainian-built turbines. Beyond that, the Indian Navy is going to negotiate with Ukraine on a contract for maintenance of its INS Vikramaditya aircraft carrier, which, by the way, had been built also in Mykolayiv by Black Sea Shipyard.

 

 

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