US embassy cable - 04ANKARA4291

C O N F I D E N T I A L ANKARA 004291 
 
SIPDIS 
 
E.O. 12958: DECL: 08/02/2029 
TAGS: MASS, PREL, PGOV, TU 
SUBJECT: TURKS PREPARING NEW ATTACK HELICOPTER TENDER 
 
REF: ANKARA 2791 
 
(U) Classified by CDA Robert S. Deutsch.  Reasons:  1.4 (b) 
and (d). 
 
1. (U) Defense industry and journalist sources expect SSM to 
issue a new RFP for attack helicopters this week.  The 
previous tender was canceled last May after a seven-year 
process in which Bell Helicopter's Cobra was selected as the 
preferred aircraft (reftel).  Under the procurement model at 
that time, TAI would have been the prime contractor and the 
site of much of the modification work done to conform to the 
unique requirements of Turkish Land Forces.  Most sources 
expect that this time around, SSM will desire bids that 
account for a domestically developed "mission computer." 
(Note:  A source at Bell believes this to be in reality the 
fire control computer.)  Such a requirement would be 
unprecedented.  Moreover, considerable software source codes 
would be required to be released in order to develop a 
mission computer that could interface with other systems on 
the aircraft.  Most American companies believe this 
requirement will knock them out of the competition because 
the USG will not authorize the release of all the code the 
Turks will demand.  (Note: The same should be true for 
foreign-made aircraft with sensitive American components.) 
 
2. (C) On July 29, polmilcouns called on SSM DU/S Faruk Ozlu 
and raised the helicopter tender.  Ozlu said that the media 
has it wrong.  The first ten helicopters to be procured will 
be "off-the-shelf with work-share."  Thus, some amount of the 
work in producing the first ten would be required to take 
place in Turkey.  The GOT would then have options for 
packages of "customized models" for which the contractor 
would be required to provide "technical assistance to Turkish 
industry to be able to do the customization."  The amount of 
technical assistance offered would be evaluated and 
considered in awarding the contract.  Thus, he argued, there 
was no absolute disclosure requirement, but each country 
would be expected to put forward a proposal based on what its 
government would authorize for release.  He therefore 
expected American companies would compete, as they had before. 
 
3. (C) Comment: Both Bell and Boeing have told us that they 
will pay the required fee to receive a copy of the RFP, 
although both were pessimistic about their ability to compete 
given what they understood would be the source code release 
requirements.  If the RFP is as Ozlu described, these 
companies might decide to compete again for the contract. 
However, the political environment now (with EU accession 
decision upcoming and the EU declaring the PKK/Kongra Gel a 
terrorist organization) will be more favorable to Europeans 
than in 1997 when the Turks began their recently aborted 
effort to procure attack helicopters, and greater flexibility 
on technology transfer may also play in the Europeans' favor. 
 Nonetheless, sources within the Turkish military continue to 
express preference for American aircraft.  Unfortunately, the 
Land Forces Command did not play a very active role in the 
previous, seven-year procurement effort.  We can only hope 
with new leadership (TLFC Commander Gen Yalman's replacement 
should be announced this week) will play a more assertive 
role in what all sources confirm is the top procurement 
priority for the Turkish armed forces.  End comment. 
 
DEUTSCH