ST Kinetics wins US$121.5m US Marine Corps deal

ST Kinetics wins US$121.5m US Marine Corps deal
Published: 3:45 PM, March 21, 2016
Updated: 6:21 PM, March 21, 2016

SINGAPORE – Local defence company ST Kinetics has been awarded a US$121.5 million contract to supply 13 amphibious combat vehicle prototypes, known as Terrex 2, to the United States Marine Corps. Together with US-partner Science Applications International Corp. (SAIC), it was awarded the contract over objections from a competitor that had a cheaper proposal.

According to a statement from the US Government Accountability Office (GAO) on March 15, General Dynamics Land Systems had challenged the Marine Corps’ evaluation in not awarding the tender to the lower-rated, lower-priced proposal by General Dynamics. The GAO concluded that the Marine Corps’ evaluation of the General Dynamics proposal was reasonable and consistent with the evaluation scheme identified in the solicitation.

It added: “GAO also concluded that the decision to select SAIC’s higher-rated, but higher-priced proposal was within the agency’s discretion when conducting a best value procurement.”

According to the GAO, this is the first phase of a two-step procurement for the development of the Marine Corps’ amphibious combat vehicle. The total value of the contract with all options exercised is approximately US$1.2 billion, it said.

ST Kinetics and SAIC will now move into the Engineering, Manufacturing and Development phase of the programme, known as the Amphibious Combat Vehicle Phase 1, Increment 1, said an ST Engineering press statement on March 17. ST Engineering is the parent company of ST Kinetics.

The Terrex 2 is an 8x8 wheeled armoured amphibious combat vehicle that can transport a combat load of up to 11 soldiers, and three crew members. In water, it has a hydraulically driven propulsion systems with full independent thrust control authority that allows it to operate even through six-feet high plunging surf.

“The selection of the Terrex 2 is a testament to the proven strengths of the Terrex family as a lethal and highly survivable 8x8 wheeled armoured vehicle platform,” said ST Kinetics president Ravinder Singh in the statement. “What we have now achieved in Terrex 2 is a testimony to the maturity of our defence engineering expertise, allowing us to compete against established global defence companies.”

A version of the Terrex, the Terrex Infantry Carrier Vehicle, is used by the Singapore Armed Forces. It has seven variants including command, trooper, pioneer and medical versions. The team behind the Terrex won the Defence Technology Prize in 2010 awarded by Singapore’s Ministry of Defence.