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U.S. firms eye $2.43 billion Singapore F-16 order

: Jan 27, 2014 - : 10:54 am

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The U.S. Defense Department has notified Congress that it had approved the sale to Singapore of upgrades for 60 F-16 fighter jets, setting off a potential competition for an order valued at $2.43 billion.

The Pentagon’s Defense Security Cooperation Agency, or DSCA, said Singapore had requested an upgrade of 60 aging F-16 jets built by Lockheed Martin Corp to improve their reliability and effectiveness in combat.

Lockheed, which built the original F-16s, and BAE Systems, a key supplier and subcontractor, are increasingly focused on capturing upgrade orders given reductions in U.S. and European military spending.

In its notification to Congress, DSCA did not name a prime contractor for the Singapore F-16 upgrades. Officials at the agency had no immediate comment on whether there would be an open competition or a sole source award.

Officials at the Singapore embassy were not immediately available to comment on the issue.

Lockheed said it hoped to win the order. “Lockheed Martin has partnered with Singapore on the F-16 program for more than 25 years and we look forward to continuing to support them in the future,” said spokesman Michael Rein.

But BAE is pressing for an open competition, arguing that it can carry out upgrades to existing F-16s for less cost.

Last year, BAE finalized a deal worth over $1 billion to upgrade over 130 South Korean F-16 fighters, and the company is seeking additional orders in Europe and Asia.

“We want to be considered as a competitor for Singapore’s F-16 upgrade program and look forward to further discussions with them to support and deliver F-16 upgrade solutions tailored to their requirements,” said BAE spokesman Neil Franz.

“Our team is very interested in this pursuit and would like to see an open competition,” he said, noting that BAE provides about 40 percent of the mission equipment for current F-16s.

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