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The race for the “mother of all defence deals”, the $10.4 billion project to acquire 126 medium multi-role combat aircraft (MMRCA) for IAF, is getting hotter. “IAF is likely to submit the exhaustive report by next week. Subsequently, a shortlist of the fighters which have done well in the field evaluation test and the staff evaluation will be made,” said a source. This will be the first time that “life-cycle costs” will be taken into account rather than just pitching for the lowest bidder. The “direct acquisition cost”, the cost of operating the fighters over a 40-year period, with 6,000 hours of flying, and the cost of the ToT will all be taken into account to arrive at a “verifiable cost model” for the commercial evaluation.
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"The 'direct acquisition cost', the cost of operating the fighters over a 40-year period, with 6,000 hours of flying, and the cost of the ToT will all be taken into account to arrive at a 'verifiable cost model' for the commercial evaluation. 50% offsets specified in the contract."
Perhaps the main reasons behind the MMRCA competition.
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