Text Fwd: Bidding for Military Communication Network System in Mudslinging

Korea Times
Bidding for Military Communication Network System in Mudslinging
01-06-2010 20:54
By Jung Sung-ki
Staff Reporter

A 4-trillion-won project to equip the nation's armed forces with the most up-to-date military communication network system is in rough-and-tumble shape due to heated competition between bidders.

The Defense Acquisition Program Administration (DAPA) is conducting an in-house audit of the bidding for the program — the development of the Tactical Information Communication Network (TICN) — after two bidders filed complaints with the agency over alleged foul play by their competitor.

As a result, the already long-delayed program, which was initiated in 2003, is expected to see a further delay.

The TICN is a cutting-edge digital command-and-control and sensor-to-shooter battlefield system expected to replace the existing SPIDER communication systems run by the Army by 2020.

It is designed to advance into a high-speed, large-capacity, long-distance wireless relay transmission system. SPIDER can only transmit still images and voice data, but TICN allows for the integrated transmission of video, image and voice data at more than 10 times the current speed.

Last August, DAPA opened a bid for the full-scale development of TICN, following two years of exploratory development from 2007 to 2008. The agency said it would select final bidders by the end of October.

Two precision electronics makers, Samsung Thales and LIG Nex1, submitted their own request for proposals (RFP) for the program that includes six sub-categories, including a Network Management System (NMS), High Capacity Trunk Radio (HCTR) and Tactical Multi-band and Multi-role Radio (TMMR).

During the exploratory development period, Samsung Thales was in charge of the NMS development and two other subsystems, while LIG Nex1 took charge of TMMR. Among the subsystems, the development of TMMR is considered the most lucrative one, worth about 1.5 trillion won.

Samsung Thales has sought to take over the TMMR portion of the full-scale development.

DAPA considered Samsung Thales' offer positively during the first evaluation in October, sources said, as the joint venture between Samsung and French defense firm Thales said it could reduce development time by a year and also cut costs by 300 billion won.

LIG Nex1, however, raised the issue of whether or not Samsung Thales had received the required Capability Maturity Model Integration (CMMI) certification level. The five-level CMMI is a process improvement framework that organizations use to improve their ability to build and maintain quality products and services.

The U.S.-based Software Engineering Institute (SEI) awards the certification which is valid for three years.

As for the TICN program, DAPA requested a bidder with a CMMI level 3 or more as part of its more than 200 evaluation criteria.

LIG Nex1, which has the highest CMMI level of 5, argues Samsung Thales falsely stated in its RFP that it had a CMMI level of 4 despite the fact that the certification had already expired.

Samsung officials rebutted the claim, saying the firm simply listed the records of its CMMI acquisition and didn't mean to cheat the agency. Samsung Thales has a level 3 certification, which was awarded in 2007, according to the officials.

The firm last month successfully applied for level 5 and will receive certification by as early as late this month, they say.

After accepting LIG's compliant, the agency decided to review bidders RFPs again in November, but Samsung Thales this time filed complaints over an alleged connection between LIG and DAPA members.

Samsung claimed that one of the DAPA officials who participated in the second round of the selection committee provided an LIG official with the results of the committee meeting via text message.

A DAPA spokesman said the in-house audit will be finished Friday and the selection process will be re-launched no later than March.

gallantjung@koreatimes.co.kr