New Delhi: Even as three Rafale fighters line up in Bengaluru for eye-popping aerobatics displays at the Aero India 2015 exhibition this week, senior ministry of defence (MoD) sources say the proposal to buy the French fighter is "effectively dead".
The reason: During three years of negotiations between Dassault and MoD officials in the so-called "contract negotiation committee" (CNC), it has emerged that Dassault's bid was actually higher than that of the Eurofighter Typhoon, not lower as the MoD had announced on January 31, 2012.
Dassault had submitted a sketchy commercial bid, and when the CNC obtained details from the French company to arrive at the actual cost of the Rafale, the figures added up to significantly more than had originally been estimated.
The confusion is due partly to MoD inexperience with "life cycle costing" (LCC). The global tender for 126 medium multi-role combat aircraft (MMRCA) was the first time the MoD was awarding a contract based on LCC. This meant the winner would not be the fighter with the cheapest purchase price; instead the chosen fighter would be the one that was cheaper to buy, fly, maintain and overhaul over its 30-40 year service life.
16/02/15 Ajai Shukla/Business Standard
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The reason: During three years of negotiations between Dassault and MoD officials in the so-called "contract negotiation committee" (CNC), it has emerged that Dassault's bid was actually higher than that of the Eurofighter Typhoon, not lower as the MoD had announced on January 31, 2012.
Dassault had submitted a sketchy commercial bid, and when the CNC obtained details from the French company to arrive at the actual cost of the Rafale, the figures added up to significantly more than had originally been estimated.
The confusion is due partly to MoD inexperience with "life cycle costing" (LCC). The global tender for 126 medium multi-role combat aircraft (MMRCA) was the first time the MoD was awarding a contract based on LCC. This meant the winner would not be the fighter with the cheapest purchase price; instead the chosen fighter would be the one that was cheaper to buy, fly, maintain and overhaul over its 30-40 year service life.
16/02/15 Ajai Shukla/Business Standard
