TURKS PREPARING NEW ATTACK HELICOPTER TENDER

C O N F I D E N T I A L ANKARA 004291

SIPDIS

E.O. 12958: DECL: 08/02/2029
TAGS: MASS PREL PGOV TU
SUBJECT: TURKS PREPARING NEW ATTACK HELICOPTER TENDER

REF: ANKARA 2791

(U) Classified by CDA Robert S. Deutsch. Reasons: 1.4 (b)
and (d).


1. (U) Defense industry and journalist sources expect SSM to
issue a new RFP for attack helicopters this week. The
previous tender was canceled last May after a seven-year
process in which Bell Helicopter's Cobra was selected as the
preferred aircraft (reftel). Under the procurement model at
that time, TAI would have been the prime contractor and the
site of much of the modification work done to conform to the
unique requirements of Turkish Land Forces. Most sources
expect that this time around, SSM will desire bids that
account for a domestically developed "mission computer."
(Note: A source at Bell believes this to be in reality the
fire control computer.) Such a requirement would be
unprecedented. Moreover, considerable software source codes
would be required to be released in order to develop a
mission computer that could interface with other systems on
the aircraft. Most American companies believe this
requirement will knock them out of the competition because
the USG will not authorize the release of all the code the
Turks will demand. (Note: The same should be true for
foreign-made aircraft with sensitive American components.)


2. (C) On July 29, polmilcouns called on SSM DU/S Faruk Ozlu
and raised the helicopter tender. Ozlu said that the media
has it wrong. The first ten helicopters to be procured will
be "off-the-shelf with work-share." Thus, some amount of the
work in producing the first ten would be required to take
place in Turkey. The GOT would then have options for
packages of "customized models" for which the contractor
would be required to provide "technical assistance to Turkish
industry to be able to do the customization." The amount of
technical assistance offered would be evaluated and
considered in awarding the contract. Thus, he argued, there
was no absolute disclosure requirement, but each country
would be expected to put forward a proposal based on what its
government would authorize for release. He therefore
expected American companies would compete, as they had before.


3. (C) Comment: Both Bell and Boeing have told us that they
will pay the required fee to receive a copy of the RFP,
although both were pessimistic about their ability to compete
given what they understood would be the source code release
requirements. If the RFP is as Ozlu described, these
companies might decide to compete again for the contract.
However, the political environment now (with EU accession
decision upcoming and the EU declaring the PKK/Kongra Gel a
terrorist organization) will be more favorable to Europeans
than in 1997 when the Turks began their recently aborted
effort to procure attack helicopters, and greater flexibility
on technology transfer may also play in the Europeans' favor.
Nonetheless, sources within the Turkish military continue to
express preference for American aircraft. Unfortunately, the
Land Forces Command did not play a very active role in the
previous, seven-year procurement effort. We can only hope
with new leadership (TLFC Commander Gen Yalman's replacement
should be announced this week) will play a more assertive
role in what all sources confirm is the top procurement
priority for the Turkish armed forces. End comment.

DEUTSCH