A pc-generated picture exhibits a simulated sea trial of Hanwha Ocean’s Korean Subsequent-Technology Destroyer (KDDX). Courtesy of Hanwha Ocean
Korea’s arms procurement company has once more postponed a closing choice on how one can award the Korean Subsequent-Technology Destroyer (KDDX) undertaking, opting as a substitute for a chosen aggressive bidding course of after almost two years of impasse.
The Protection Acquisition Program Administration (DAPA) stated Monday that the Protection Undertaking Promotion Committee had authorized a plan to pick a contractor for the detailed design and building of the primary KDDX vessel by means of a contest restricted to HD Hyundai Heavy Industries and Hanwha Ocean.
The company will now redraw its grasp plan for the ship’s detailed design and building, a blueprint that should clear a closing committee hurdle earlier than formal bids are solicited. Whereas the transfer introduces one other layer of administrative assessment to the already stalled program, officers insist they’re dedicated to an aggressive timeline, aiming to finalize a contract by the tip of subsequent yr.
A DAPA official stated the committee reached the choice unanimously after in depth deliberation.
“Many members emphasised the necessity to restore equity by means of competitors, whereas additionally guaranteeing that the undertaking doesn’t face additional delays,” the official stated throughout a closed-door briefing following the assembly.
The KDDX program, launched in 2011, envisions the development of six 6,000-ton-class destroyers outfitted with domestically developed fight techniques, forming a core ingredient of the Navy’s future floor fleet. Hanwha Ocean — then working as Daewoo Shipbuilding & Marine Engineering — produced the idea design in 2012, with HD Hyundai Heavy Industries finishing the fundamental design a number of years later.
Nonetheless, the undertaking has been mired in controversy because it emerged that HD Hyundai workers illegally obtained confidential KDDX-related supplies, together with idea design information. Courtroom rulings finalized in 2023 confirmed the violations, fueling a protracted dispute over whether or not the follow-on phases must be awarded by means of a sole-source contract or open competitors.
DAPA had favored a sole-source contract, arguing that it will be quicker and higher in the event that they protect design continuity, however the strategy drew criticism over equity and potential authorized challenges.
The talk intensified earlier this month after President Lee Jae Myung publicly questioned the appropriateness of awarding sole-source contracts to corporations penalized for leaking army secrets and techniques.
Explaining the most recent choice, a DAPA official stated the designated competitors would permit the company to steadiness equity with schedule administration.
“Primarily based on the committee’s choice, we’ll proceed step-by-step in keeping with established procedures, with the purpose of finalizing the contract by the tip of subsequent yr,” the official stated.
The choice successfully reopens the race between the 2 shipbuilders, a growth seen as widening alternatives for Hanwha Ocean.
Hanwha Ocean welcomed the choice in a press release, calling it a constructive step towards resolving long-standing uncertainties surrounding the undertaking.
“The choice to finalize the choice technique for the detailed design and building of the lead KDDX vessel, even at this stage, is a welcome consequence,” the corporate stated.
Issues stay that the extended choice course of may have an effect on the Navy’s power modernization timeline, as a number of getting old destroyers are anticipated to retire within the coming years. DAPA, nevertheless, stated the revised schedule can nonetheless meet operational necessities if subsequent procedures proceed with out additional disruption.
