Indian MMRCA: Dassault’s Rafale dumps its price to beat the Eurofighter

Finally the winner of the Indian MMRCA competition has been announced (or at least the L1 bidder) and it seems that the French dumped their prices for the Rafale to beat the Eurofighter by $4-5 million per aircraft. The performance of the Rafale in the Libyan adventure was also to its benefit compared to the Eurofighter Typhoon. Normally in the procurement process, the L1 bidder is called for final discussions to settle the contract and some further price negotiations can be expected. The contract will not be settled till the next fiscal year (after April 2012) and it would be very unusual for the evaluated L1 bidder not to get the contract. This contract is particularly important for Dassault since not only did the Rafale need a boost but also because they are guaranteed a market with the Indian Air Force for at least the next 15 years.

Economic Times:

French company Dassault Rafale on Tuesday bagged India’s biggest-ever contract for supplying 126 combat aircraft for the air force, edging out European competitor EADS in the multi-billion dollar deal. 

The French firm was declared as the lowest bidder, according to which it will get the contract under India’s defence procurement procedure, sources said.  “The French firm Dassault Rafale has emerged as the L-1 (lowest bidder) and cheaper than its european rival EADS (maker of Eurofighter) in the tender and will be offered to supply the aircraft to the IAF,” the source said. 

They said the representatives of Dassault here were informed about the development in the morning and further negotiations on price will be held with them in the next 10-15 days. 

The contract will be signed only in the next fiscal. According to the Request for Proposal (RFP), the winner of the contract will have to supply 18 of the 126 aircraft to the IAF in 36 months from its facilities and the remaining would be produced at HAL facilities in Bangalore. 

Six companies including American F-16 and F-18, Russian MiG 35, Swedish Saab Gripen alongwith Eurofighter and Dassault Rafale were in the race in the beginning. But in April last year, the Defence Ministry shortlisted Dassault and EADS, evicting the American, Russian and Swedish bids. 

The process was started with the issuing of a global tender in 2007 after which all the six contenders were subjected to extensive field evaluation trails by the Indian Air Force at several locations across the globe. 

The Defence Ministry had earlier cleared the way for opening commercial bids of Rafale and Eurofighter Typhoon by approving their offset proposals.

famille Rafale

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5 Responses to “Indian MMRCA: Dassault’s Rafale dumps its price to beat the Eurofighter”

  1. bikeal Says:

    Reblogged this on Calgary Recreational and Ultralight Flying Club (CRUFC).

  2. Indian MMRCA: Rafale deal was $5 billion cheaper than the Eurofighter « The k2p blog Says:

    […] still represents a life-cycle cost difference of some $26 million per aircraft  and not just the $4-5 million lower list-price. It seems almost impossible for the Eurofighter to match this difference. The first 18 aircraft […]

  3. Indian MMRCA: Rafale deal is $5 billion cheaper than the Eurofighter « The k2p blog Says:

    […] still represents a life-cycle cost difference of some $26 million per aircraft  and not just the $4-5 million lower list-price. It seems almost impossible for the Eurofighter to match this difference. The first 18 aircraft […]

  4. Following Indian MMRCA success, Dassaut’s Rafale also tipped for Brazil « The k2p blog Says:

    […] Indian MMRCA success, Dassaut’s Rafale also tipped for Brazil Dassault’s success in being selected as the lowest bidder for the Indian MMRCA competition with the Rafale aircraft […]

  5. Eurofighter tries to spoil the Indian MMRCA Rafale deal « The k2p blog Says:

    […] Dassault’s Rafale was announced as being the lowest bidder beating the Eurofighter for the $20billion Indian MMRCA contract at the end of January. […]

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