Russian Defense Procurement Contracts in August-September 2012
Mikhail Lukin, Kommersant Publishing House
On August 2 the government released information about the execution of a contract for the delivery of 3,827 PB-4SP tubeless pistols for the Ministry of Interior. The value of the contract is 44,700,584.64 roubles (unit cost 11,680.32 roubles), for delivery by November 2012. The sole bidder in an auction held on April 16 was OAO Federal Research and Production Center “Science and Research Institute of Applied Chemistry” (Sergiyev Posad, Moscow Region). The contract was announced on March 6, 2012. The PB-4SP pistol is a modification of Osa, a self-defense weapon approved for use by civilians. It uses more powerful non-lethal ammunition.
On August 8 the government released information about a contract to manufacture and supply eight Gonets-M spacecraft in 2012-2015. The value of the contract is 1,726,518,800 roubles (unit cost 215.8m roubles). The contract was awarded to OAO Academician Reshetnikov Information Satellite Systems. Information about the order was initially released in July 20.
A month later, on August 23, the government announced the failure of an open competition (which was announced on June 1) for a contract to develop a multirole system of personal satellite communications and data transmission from low-orbit spacecraft (the Gonets-M R&D project). The sole bidder was OAO Academician Reshetnikov Information Satellite Systems. The contract includes the development of the Gonets-D1M system, with 12 orbiting satellites built using a modified Gonets-D1 satellite platform. The system will have the capacity to serve up to 10,000 users and have a throughput of at least 100 Mbit per 24 hours. The starting price of the contract is 2,857m roubles.
On August 17 - September 14 the government released information about 11 contracts for the disposal of RSM-50, RSM-52, RSM-54 and 3M-91 SLBMs and missile components, worth a total of 227,612,970 roubles. The government then announced the failure of all the auctions for these contracts; orders were placed with the solder bidders, in most cases at the starting price.
Two contracts, worth 101,548,700 roubles, were awarded to OAO Krasnoyarsk Machinery Plant:
Transportation by railway, removal of rocket fuel components, neutralization, disassembly and disposal of RSM-50 SLBMs (three missiles). The value of the contract is 30,421,800 roubles.
Transportation by railway, removal of rocket fuel components, neutralization, disassembly and disposal of RSM-50 SLBMs (six missiles). The value of the contract is 71,126,900 roubles.
Five contracts, worth 53,830,400 roubles, were awarded to ZAO South Urals Specialized Disposal Center:
Transportation and disposal of 5 sets of 3B-66 blocks of dismantled SLBMs, worth 2,153,500 roubles.
Disassembly and disposal of elements of RSM-50, RSM-52 and RSM-54 SLBMs (28 units), worth 2.2m roubles
Processing and burial of 10 sets of nozzle clusters of the main engines of RSM-52 SLBM, worth 11,505,700 roubles.
Transportation, disassembly, processing and disposal of RSM-52DMV SLBM mock-ups (2 units), worth 18.5m roubles.
Transportation, disassembly and disposal of RSM-52DMV SLBM mock-ups and TPA-1 transports (4 units), worth 19,471,200 roubles.
Two contracts worth 58,818,200 roubles were awarded to OAO Zlatoustovskiy Machinery Plant:
Neutralization, disassembly and disposal of special-purpose engines, core engines, control systems and other elements of 3M94 SLBMs (30 units), worth 13,710,000 roubles.
Disassembly and disposal of components and elements of 3M-65 and 3M-91 SLBMs, worth 45,108,200 roubles
Two contracts, worth 13,415,670 roubles, were awarded to OOO Iskra Research and Production Company:
Neutralization, disassembly and disposal of special-purpose engines, core engines, control systems and other elements of 3M94 SLBMs (364 units), worth 3,497,180 roubles.
Neutralization, disassembly and disposal of special-purpose engines, core engines, control systems and other elements of 3M94 SLBMs (749 units), worth 9,918,490 roubles.
On August 22 the government released information about a contract for an R&D project entitled “Systemic analysis of Russia’s maritime activities and development of drafts of the Russian Maritime Doctrine for the period until 2030, as well as a draft piece of legislation on state regulation of Russia’s maritime activities” (Code name Mariner 2030). The contract, worth 82,8m roubles, was awarded to OAO State Science and Research Institute of Navigation and Hydrography (St Petersburg), which was the sole bidder. The delivery deadline is December 2013.
The contract was initially announced on June 19, 2012.
On August 28 the government announced the failure, due to the absence of any bids, of an open electronic auction for a state contract for maintenance and extension of service life of 80 sets of USET-80 and UMGT-1 torpedoes, and MG-44 and MG-74 sonar countermeasure devices currently in service with the Pacific Fleet.
The starting (maximum) price of the contract was set at 40m roubles (500,000 roubles per unit). The contractor was expected to establish the actual state of repair of the torpedoes, identify any defects, conduct repairs (routine and medium-depth), re-certify the torpedoes and obtain all the necessary documents for the extension of their service life. The contract was announced on August 3.
On August 30 the government withdrew its previous announcement of a contract for the delivery to the MoD of a mobile versatile 150-bed hospital. The initial price of the contract was 1,303,700,000 roubles. The auction was scheduled for 24 September. The original announcement was made on July 13.
The hospital was to include a reception and triage block, an outpatient block, a diagnostic block, a surgery and intensive care unit, a general-hospital unit, an infectious diseases unit, a medical supplies block, an administrative block and an auxiliary block, all housed in 70 tents and 106 special containers transported by 25 cars and trucks of different types.
The auction was cancelled after the Rosoboronpostavka defense procurement agency said the terms of the auction were unfair and broke the law. More specifically, the agency said that “the party which invited bids for the contract spelled out in great detail the precise technical specifications of some of the components and equipment to be supplied; these specifications could only be met by a single supplier, which restricts the right of the other bidders to take part in the auction”.
On August 31 and September 17 the government released information about contracts for the delivery in 2012-2014 of ground control, maintenance and testing equipment for the Yak-130 and Su-34 aircraft. Both contracts were announced by the MoD in July 2012. Both auctions failed because there was only a single bid for each of the two contracts. The government then awarded the contracts at the starting price to the sole bidders:
A contract worth 290,557,501.44 roubles for ground maintenance equipment (116 items in total) for the Yak-130 aircraft, to be delivered to the 209th Training Air Base (Borisoglebsk, Voronezh Region), was awarded to OAO Irkut Corporation.
A contract worth 688,658,900 roubles for ground control equipment, maintenance equipment and testing instruments (387 items in total) for the Su-34 aircraft, to be delivered to the 7000th Guard 1st Rank Air Base (Voronezh), was awarded to OAO Chkalov Novosibirsk Aircraft Production Company.
On September 5 the government released information about a contract to dismantle and dispose of the equipment and components of the SRLS-62 Dunay-3U fixed-position radar (Chekhov, Moscow Region), to be completed in 2012-2013. The radar, which has been out of service since 1998, used to be part of the A-35 missile defense system, which protects Moscow. The auction was announced on July 9. The contract was awarded to the sole bidder, OAO Almaz-Antey Air Defense Concern. The value of the contract equals the starting price of 118,794,200 roubles.
On September 6 the government completed the signing of the contract for the transportation, disassembly and disposal of components of ICBMs, to the number of 36, which were left unused after the completion of the Amur-P R&D project (5Zh60P complex of the A-135 missile defense system).
The contract, announced on July 24 and worth 4,709,400 dollars, was awarded at the starting price to OAO Mashinostroitel Perm Plant. The delivery deadlines are in October-November 2012. The missiles to be disposed of are in storage at the Polet Production Company, a branch of FGUP Khrunichev GKNPTs (Omsk).
On September 10 the government released information about a contract to disassemble and dispose of 846 special components of ground-based missile systems. The contract has been awarded at the starting price of 38,698,100 roubles to ZAO South Urals Specialized Disposal Center (town of Miass). The contract is part of the Federal Program “Industrial Disposal of Weapons and Military Hardware in 2011-2015 and in the Period Until 2020”. Information about the contract was announced on July 17.
The missile system components to be disposed of are currently in storage at the 29th Arsenal of the Strategic Missile Troops (village of Balezino, Udmurtia). They include:
45 communications vehicles of various types.
33 command vehicles of various types.
5 mobile missile battalion command stations.
43 combat duty support vehicles of various types.
720 ground-based mobile launchers.
On September 10 the government announced information about a contract to dispose of ground-based missile system components to the number of 7,512, including 7,367 to be disposed of in 2012, and another 145 in 2013. Bids for the contract were invited on July 17, 2012. The contract was awarded at the starting price of 39,879,300 roubles to the sole bidder of the failed auction, ZAO South Urals Specialized Disposal Center.
The disposal works are to be conducted at the 2565th Central Hardware Storage Base of the Strategic Missile Troops (village of Novodugino, Smolensk Region), at OAO PO Barrikady company (Volgograd), and at the 28th Guard Red Banner Missile Division (Kozelsk, Kaluga Region).
On September 11 the government declared the failure, owing to the absence of any bids, of an auction for a state contract to train technicians and instructors in the operation and maintenance of the IVECO 65E19WM (LMW) armored vehicles. The contract, worth 1,646,034 roubles, required the training of four MoD officers for a total of 160 academic hours (including 40 hours of theory and 16 hours of driving practice). Training was to be conducted at the IVECO plant in Bolzano (Italy). The contract was announced on August 28.
On September 11 the government released information about the execution of a contract for the delivery of S-8KOM (9-A-4421) unguided airborne HEDP rockets to the Interior Ministry.
The contract, worth 105,730,200 roubles, has been awarded to OAO Plastics Plant (city of Kopeysk, Chelyabinsk Region). Under the terms of the contract, which was announced on March 28, the company will supply 2,484 rockets at the unit price of 42,300 roubles.
On September 13 the government released information about changes to the terms of four contracts for the delivery of sniper rifles to the Interior Ministry. The auctions were initially announced on June 5-7, 2012. The Interior Ministry has agreed to buy 313 rifles from OAO NPO Izhmash for a total of 29,851,562.13 roubles, including:
13 SV-99 rifles worth 1,938,623.83 roubles (unit price 149,124.91 roubles).
23 SV-98 rifles worth 10,378.589 roubles (unit price 451,243 roubles).
277 SVD rifles (including 30 folding-stock units) worth 17,534,349.3 roubles (unit price 63,300.9 roubles).
On September 13 the government announced an open auction for a contract to deliver to the MoD some 4,946,058 flasks of individual prophylactic hygiene products in 2012. The purpose of the product is “to ensure personal hygiene of hands by servicemen before handling food or after visiting toilet, as well as individual prevention of pyodermatosis”.
The starting (maximum) price of the contract has been set at 329,890,448.8 roubles (83.6 roubles per flask). The auction has been scheduled for October 22.
On September 14 the government released information about a contract for the delivery to the Russian FSB security service of Gorizont Air S-100 ship-based helicopter-type unmanned aerial vehicles (a Russian-assembled version of the Camcopter S-100, made by Austria’s Schiebel).
The contract was announced on August 6. Following an auction held on August 31, it was awarded to the sole bidder, OAO Gorizont (Rostov-on-Don), at the starting price of 156,503,750.57 roubles.
According to the terms of the auction, the UAV system is designed for daytime and night-time reconnaissance in good and adverse weather conditions; video monitoring; territory and water surface monitoring; detection and identification of objects in a pre-determined area or along the flight path; fixing the coordinates of these objects; determining the direction and movement parameters of targets; and transmission of video and thermal imaging information in real time to a ground control station and/or to a central automated control system. The UAVs must also be capable of carrying additional “Russian-made payload”.
The hardware to be delivered to the customer includes two UAVs, a sealed storage container, control, power supply and communication blocks, various consumables, and tanks for fuel storage and sedimentation. The whole UAV complex requires a crew of six to operate and maintain.
On September 14 the government released information about open bidding for a contract to deliver PD-441-01 special data transmission systems to the MoD. The starting price of the contract has been set at 91,143,768.76 roubles. It includes the delivery of 262 PD-441-01 units, which support data transmission at the rate of up to 9,600 bit/sec. The unit price has been set at 347,877 roubles.
The outcome of the bidding is to be announced on October 12, 2012.
On September 19 the government released information about open bidding for a contract to conduct flight tests and provide ground control services for the Resurs-P No 1 spacecraft using MoD facilities (Resurs-P (LI) project). The contract is part of an R&D project to develop an optical-electronic geo-surveying spacecraft and a space system based on that spacecraft.
Under the terms of the contract, ground control services for the Resurs-P satellite during its flight tests are to be provided for a 90-day period. The starting (maximum) price of the contract was set at 56,250,000 roubles. The outcome of the bidding is to be announced on November 1, 2012.
On September 24 the government released minutes from a meeting to determine the outcome of open bidding for a contract to improve the database which contains information about the soldiers who died or went missing during World War II and during the post-war period (OBD Memorial project). The contractor will be asked to process archive documents (including their scanning and optical character recognition), and enter the resulting information into the Memorial database, including personal data and electronic copies of reports documenting the losses during World War II and the post-war period. There are a total of 1,379,909 paper records to be processed. All the new information will need to be merged with the data that was entered into the Memorial database in 2007-2011 (which includes record of 29,018,843 people and 13.7m digitized documents; the overall size of the archive is 28TB). The new information is to be hosted on the customer’s hardware and software systems.
The starting (maximum) price of the contract has been set at 40,845,306.4 roubles. The contract was announced on July 27. Two bids have been submitted so far, by ZAO NPT Opyt and ZAO Electronic Archive, both from Moscow. Both bids have passed the initial vetting. The winner was to be announced on October 4.
On September 28 the government released minutes from the meeting to open sealed bids for an MoD contract to dispose of small arms and close combat weapons in 2012. The contract, which was announced on August 10, is worth a total of 97,631,848.78 roubles; it includes two lots:
Dispose of 205,483 automatic assault rifles, 3,975 grenade launchers, 338,855 pistols, and 344 mounted grenade launchers. The lot is worth 76,794,333.23 roubles.
Dispose of 98,588 automatic assault rifles and submachine guns, 21,356 pistols and revolvers, 49 rifles and carbines and 2,323 machine-guns. The lot of worth 20,837,515.55 roubles.
There were two bids for each lot, submitted by OAO Molot Vyatka-Polyanka Machinery Plant and OOO Transport Technologies (Petrozavodsk). Both companies offered the starting price.
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