Identifier
Created
Classification
Origin
05ANKARA3846
2005-07-04 09:28:00
CONFIDENTIAL
Embassy Ankara
Cable title:  

DEPUTY UNDER SECRETARY OF DEFENSE PATRICK

Tags:  MARR MASS PREL PGOV TU 
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This record is a partial extract of the original cable. The full text of the original cable is not available.

040928Z Jul 05
C O N F I D E N T I A L SECTION 01 OF 02 ANKARA 003846 

SIPDIS

STATE FOR EUR/SE AND PM/DTTC

E.O. 12958: DECL: 06/28/2015
TAGS: MARR MASS PREL PGOV TU
SUBJECT: DEPUTY UNDER SECRETARY OF DEFENSE PATRICK
UNDERSCORES CONTINUED CONCERNS WITH ATAK HELO TENDER

REF: ANKARA

Classified By: Acting DCM James R. Moore, reasons 1.4 (b) and (d).

C O N F I D E N T I A L SECTION 01 OF 02 ANKARA 003846

SIPDIS

STATE FOR EUR/SE AND PM/DTTC

E.O. 12958: DECL: 06/28/2015
TAGS: MARR MASS PREL PGOV TU
SUBJECT: DEPUTY UNDER SECRETARY OF DEFENSE PATRICK
UNDERSCORES CONTINUED CONCERNS WITH ATAK HELO TENDER

REF: ANKARA

Classified By: Acting DCM James R. Moore, reasons 1.4 (b) and (d).


1. (C) SUMMARY: Deputy Under Secretary of Defense (DUSD) for
Industrial Affairs Suzanne Patrick notified Turkish Under
Secretary for Defense Industries Murad Bayar that US

SIPDIS
companies and the US government remained concerned about many
of the ATAK Helicopter tender terms and conditions (T&Cs),
despite revisions made by the Turkish Undersecretariat for
Defense Industries (Savunma Sanayi Mustesarligi - SSM) in
response to input from Boeing. She suggested several SSM
actions that might address key industry concerns -- including
hosting meetings for all prospective bidders with the mission
computer design team -- and urged SSM to delay the bid
submission deadline 6-9 months to carry them out. Expressing
receptivity to some of these ideas, Bayar nonetheless held
that the schedule could not be further postponed absent
assurances that US firms would participate. SSM Aviation
Department Head Sedat Guldogan said a meeting with a visiting
Boeing team earlier that day had gone well and Boeing had
already been invited to meet with the Turkish mission
computer design consortium, prompting Bayar to declare that
SSM was already meeting DUSD Patrick's recommendations. He
expressed his desire for Bell Helicopter to rejoin the
competition and his intent to contact the company himself.
END SUMMARY.


2. (C) In a frank exchange during a two-hour meeting on June
27, DUSD Patrick related to SSM U/S Bayer the concerns
relayed to her by the three US firms (Boeing, Bell and
Sikorsky) that had purchased the ATAK Helicopter tender
regarding the tender's onerous T&Cs and the difficulty for US
firms to participate. While recognizing that SSM had revised
the tender to remedy some issues raised by Boeing, DUSD
Patrick underscored the changes had not gone far enough to
ensure a fair playing field for US firms. Enumerating the
extensive corporate liability, technology transfer and
licensing requirements, DUSD Patrick opined that the tender

contained requests for much more information than was needed
to achieve SSM's goal of integrating a Turkish mission
computer onto a foreign helicopter platform.

FURTHER SSM ACTION NEEDED TO DRAW IN US FIRMS
--------------


3. (C) After viewing SSM's ATAK Helicopter program summary,
DUSD made several specific recommendations for actions that
SSM could take that may alleviate some US defense industry
concerns about the tender:

- Mission Computer: DUSD emphasized the difficulty for a
foreign firm to determine how to configure a helicopter
without the 13 pieces of so-called "Delta Equipment"
identified by SSM for local production and integration into
the helo platform, and how to cost out a helo frame without
these items. She recommended that SSM take an additional 6-9
months to pair the Turkish mission computer consortium
(ASELSAN (electronics),TAI (aerospace) and TUBITAK (defense
industrial research)) with all prospective bidders BEFORE bid
submission. With an understanding of the proposed Turkish
mission computer configuration, US and other defense firms
could better tailor their bids and design a compatible
platform configuration. (Note: According to SSM, the mission
computer has been in development since 2001 and is scheduled
for a July 2006 test run. End Note.) Bayar said SSM had
specifically detached the mission computer development from
the tender to simplify the bid, but agreed DUSD's idea had
merit. However, given that the bid schedule had already been
delayed three months following issuance of the revised tender
in May, it could not be further delayed -- unless the USG
could guarantee that both Boeing and Bell would participate.

- Technical Data Packages (TDP): Saying that in US estimation
the laundry list of TDPs required significantly exceeded
SSM's needs based on their professed goal, and included far
more information than SSM could utilize, DUSD recommended
reducing the number of TDP requirements. SSM Aviation
Department Head Guldogan acknowledged that 50 TDPs were
requested but protested that 20-30 of those were requests for
manuals and other unrestricted information. (Note: DUSD
pointed out that SSM's production schedule listed a July 2006
test date for the mission computer and a 2007 First Quarter
deadline for TDP submission, suggesting that SSM is not/not
requesting the TDPs for mission computer development.
Guldogan confirmed that the TDP request is for integration,
not design, of the mission computer and other Turkish
components. End Note.)

- Delta Equipment: SSM identified 13 pieces of Turkish
equipment for integration into the ATAK platform. Beyond the
mission computer, the list includes weaponry and some
equipment currently produced in Turkey under joint venture
with the US, such as a targeting system, radio, flare system
and Moving Map. DUSD suggested that Turkey prioritize these
items and focus industry efforts only on those absolutely
needed in order to simplify the integration challenge.

SSM PLEASED WITH BOEING DISCUSSIONS
--------------


4. (C) Guldogan characterized SSM's meeting with Boeing
representatives earlier that day as positive, saying that the
two sides had agreed "mostly" that the company's risk had
been eliminated, but acknowledging that the payment schedule
was still under debate. He added that SSM has done "almost"
the maximum it can do, separating Boeing issues into three
categories: government authorizations, which it wanted Boeing
to work with the USG; items that increase production costs,
some of which had been addressed; and legal impediments -
which Guldogan pledged SSM's best efforts to remedy. SSM had
invited Boeing to meet with the mission computer consortium
and Boeing had agreed to sit down with the mission Office of
Defense Cooperation (ODC) to discuss a way forward on the
technology transfer challenges. Hearing this, Bayar said SSM
was already meeting DUSD's recommendation on mission computer
integration, suggesting that no further effort would be
necessary on SSM's part.

BELL - PLEASE COME BACK TO THE TABLE
--------------


5. (C) Bayar repeated several times SSM's interest in drawing
Bell Helicopter back to the table. He recognized that Bell's
negative experience with the first tender -- which it won and
negotiated for 7 years, only to see the tender canceled in
2004 -- may have led to Bell's withdrawal from participation
in the second tender. In Bayar's view, however, the changes
reflected in the revised tender issued in May might be
significant enough to draw Bell back to the table.
Recognizing that the USG can not act as an intermediary with
a US firm, Bayar pledged to contact Bell's President himself.


6. (SBU) Comment: In a subsequent meeting with Boeing,
company officials suggested that the rosy picture painted by
SSM regarding their discussions did not reflect reality. The
officials claim the revised ATAK tender only addressed 3-4%
of the 100 issues Boeing had raised with SSM and that most of
those changes were insubstantial. They dismiss the proposed
meeting with SSM's mission computer consortium as moderately
helpful, saying that absent further changes to the tender it
remained difficult for Boeing to bid. They ask, however,
that the USG not relay that to the GOT as the company has
other business pending with SSM that it wants resolved first.


7. (SBU) Comment (cont.): Other industry contacts have
confirmed that SSM Under Secretary Bayar did contact Bell
Helicopter Senior VP for Sales and Marketing Robert
Fitzpatrick. Our sources further indicated that the revised
tender issued in May 2005 did not include sufficient changes
to persuade Bell to re-join the competition. End Comment.


8. (U) This cable was not cleared with DUSD Patrick.
MCELDOWNEY