STATUS OF SIGMA95N TOT PROJECT - KORWA DIVISION

SL

System Aircraft

PROJECTS : INGPS : Jaguar DARIN-II Jaguar DARIN-III MiG-27 Upg, LCA, Hawk Su-30MKI : M/s Sagem France

STATUS Brief: A Technical & commercial proposal for Mfg & DLM ToT of INGPS received from M/s Sagem covering all platforms. The proposal excludes ToT for sensors (RLG & Accelerometer) of all variants.

Five rounds of discussion have already been held. Based on the last discussion & projections
indicated by the PNC, Sagem has been asked to submit Best & Final offer latest by 31st Jan2012. The ToT schedule are as follows: Commencement of DLM excluding DARIN-III Commencement of SKD manufacturing Development of INGPS for DARIN-III & subsequent Flight Trials /certification Commencement of DLM for DARIN-III Commencement of CKD/MCKD manufacturing

OEM

No. of LRUs

01
01

QPA
SIGMA95N

T0+18 Months

LTRA : LTRA signed in May8. TOT : MFG/DLM ToT

T0+25 Months

The manufacturing volume against firm order is 222 nos & estimated repair arisings are
2600 nos over the 20 years duration. A. Present MFG/DLM TOT proposal:

The depth of ToT offered by M/s Sagem is limited to 35% (based on spare cost). Whereas
the investment (Euro 14118904) proposed against MFG/DLM ToT is around 400 times the ToT cost as multiple of EU i.e 99900*0.35=34965, which is exorbitantly high and needs to be extensively reduced.

Details are placed as E-1. B. EU /Kit cost :

 The EU cost offered by M/s Sagem is Euro 99900 for delivery at 2012-13 level, whereas the
cost of SIGMA 95N against an alive P.O (No: 07-6715) is still at Euro 93200 for delivery in 2012. Sagem is required to bring down the price of End Unit at current P.O level and corresponding reduction in Kit prices.

Copy of earlier P.O & current offer are attached as E-2.

C. Product Support against MFG/DLM TOT :

Similar to the product support extended in ULISS-82 ToT project, M/s Sagem is required to
adopt the same approach in SIGMA95N ToT also, in place of imposing additional LTSA. D. Repair of non-ToT modules under LTRA:

At present Korwa is taking repair of complete system (SIGMA95N) including ToT +non-ToT
at a flat cost of Euro 27385 (base price Euro 24700 fixed upto Dec08+3 escl @3.5%), whereas Sagem has offered the flat repair price for Inertial Sensor Block (BSI-nonToT module) under ToT proposal as Euro 49500. Details are placed as E-3.

M/s Sagem is required to extend the existing LTRA (valid upto May2013) with the
extended scope of repair of non-ToT modules also. Or in view of repair of a sub part of complete system, LTRA cost shall be around 25-30% of End Module cost of BSI. E. ToT for the non-ToT modules (for all variants)

HAL/MOD has taken up the issue with M/s Sagem directly or through Indo-French summits
for ToT of BSI consisting of RLG & accelerometer. Sagem is required to extend the ToT for BSI (RLG & Accelerometer) & GPS/GLONASS Module also under current ToT proposal.

The correspondence in respect to BSI ToT is placed as E-4.

MOM of Indo-French Forum dated 7.10.2011 AHQ letter to Sagem on BSI ToT & Sagem reply. HAL letter to MoD for TOT for Sensors.

F.

Additional Pints needs to be taken up with IAF/AHQ

DRE sanction by March2012

a)

PPR is already submitted at AHQ. A presentation was also delivered on 8th Dec2011 at AirHQ, wherein In-principle agreement for setting up MFG/DLM facility was also accorded by IAF. At present, the validity of the Sagem offer is upto 31 st March2012 only and has been requested to extend the same upto June2012.

b)

Issuance of one NAB test bench to Korwa against TOT setup by IAF.

IAF would have 08 BM-II test benches (NAB level) against HAWK programme. There are 05 BM-II test benches already installed at Air Force station, Bidar Further 03 BM-II test benches to be delivered against 57-addl HAWK programme. In view of upcoming manufacturing & repair volume as well as to optimize the investment against ToT setup, AHQ is required to issue one BM-II test bench (presently available at HAWK level and can be used for Jaguar DARIN-II with relevant s/w) against MFG/DLM ToT setup.

The issued test bench can be upgraded to meet the additional requirement of Jaguar DARIN-III & Su-30MKI 42-addl. The cost saving would be 2.71 Cr approx. [ Cost of universal test bench: Rs 4.37 Cr, Cost of upgradation of two test bench : Rs 1.66 Cr]