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Moscow Defense Brief


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#5 (67), 2018

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Facts & Figures

Brief Review of Russian Defense Procurement Contracts in December 2012 — January 2013

Mikhail Lukin, Kommersant Publishing House

On December 4 the government declared the failure, due to the absence of any bids, of an open electronic auction for an MoD contract for 2 sets of air accident investigation instruments worth 9,968,990 roubles. The MoD wanted each set to include: communication instruments (an Inmarsat terminal, a satellite phone, and a mobile radio station); navigation instruments (GPS/GLONASS receivers, a compass, etc); computer equipment; video and photo cameras; optical instruments (magnifying glasses, microscopes, binoculars); search instruments (a metal detector and probes ); and various auxiliary instruments.

The auction was announced on November 13, 2012.

On December 18 the government released information about an MoD contract for an automated airborne assault division control system (Product 83t851-12, standard automated field command station module). The contract, worth 721,768,266 roubles, was awarded to the sole bidder, OAO Communication and Control Systems Research Institute (Moscow), with the delivery deadline in July 2013. The company is to supply 27 control station sets (unit price 26,732,158 roubles).

Seven sets apiece will be delivered to the 7th Guard Airborne Assault (Alpine) Division (Novorossiysk); the 76th Guard Airborne Assault Division (Pskov); and the 98th Guard Airborne Assault Division (Ivanovo). Another four sets will be supplied to the 38th Independent Airborne Assault Troops Communication Regiment (Medvezhyi Ozera, Moscow Region), and two sets to the 31st Independent Guard Airborne Assault Brigade (Ulyanovsk).

A standard command station is housed in two MPK-72 and one MPK-24 inflatable frame modules, and transported by two vehicles. It has 20 workstations equipped with computers, various peripherals and communication equipment, an autonomous power supply system, etc.

The notification about an open electronic auction was released on November 7; the sole bidder matched the starting price.

On December 21 the government released information about an MoD contract for 25 PNGK-1 mobile navigation and surveying sets worth 450 m roubles (unit price 18m roubles). The contract has been awarded to the sole bidder, OAO 106th Experimental Optics and Mechanics Plant, with the delivery deadline at the end of 2013. Ten sets will be delivered to MoD surveying units in the town of Korenovsk, Krasnodar Territory, and five apiece to Sertolovo, Leningrad Region; Verkhnyaya Pyshma, Sverdlovsk Region; and Khabarovsk.

Each set consists of a KAMAZ-4350 chassis equipped with an inertial mapping system, GLONASS and GPS receivers, and various computer equipment.

The notification about an open electronic auction was released on November 12; the sole bidder matched the starting price.

On December 21 the government released information about a Navy contract for 95 Kryakva-A and Kryakva-B hydro-acoustic noise and signal registration, conservation and processing, systems to be delivered in 2013-2015.

The contract has been awarded after an open electronic auction held on November 13, 2012 to the sole bidder, ZAO Morskiye Ispytaniya (Gelendzhik, Krasnodar Territory), which matched the starting price of 178,809,810 roubles.

The deliverables include:

  • 42 Kryakva-B sets (for use with surface ships) worth 75,794,880 roubles (unit price 1,804,640 roubles), including eight sets to be delivered to the Northern Fleet, nine to the Pacific Fleet, 18 to the Baltic Fleet, and seven to the Black Sea Fleet.

  • 14 Kryakva-A sets (for use with aircraft) worth 28,331,100 roubles (unit price 2,023,650 roubles), including eight sets to be delivered to the Northern Fleet and six to the Pacific Fleet.

  • 39 Kryakva-A sets (for use with submarines) worth 74,683,830 roubles (unit price 1,914,970 roubles), including 16 sets to be delivered to the Northern Fleet, 17 to the Pacific Fleet, and six to the Black Sea Fleet.

On December 21 the government released information about a Navy contract for 22 Alevrit-001.1, Alevrit-001 and Alevrit-FRTS situation display hardware and software systems (FSOO) for use at command HQs of large troop formations and fleet formations.

An FSOO system is a component of a Navy integrated and automated control system; its purpose is to automate the functions of the following officers: fleet observation duty officer (Main Coastal Information Station; troop formation Coastal Information Station), and operations duty officer of the 825th Navy Information Center.

The FSOO system automates the following tasks:

  • collecting and accumulating information about the situation in “close to real time” mode;

  • processing information flows (maintaining databases) by naval situation display duty officers;

  • maintaining a dynamically updated map of the situation in the area of responsibility;

  • processing input and forming output documents about the situation;

  • producing recommendations for managing the situation display system in a specific tactical situation.

After an open electronic auction held on November 13, 2012 the contract was awarded to the sole bidder, the Federal State-owned Government-funded Science Institution of the St Petersburg IT and Automation Institute of the Russian Academy of Sciences (SPIIRAN). The value of the deliverables is as follows:

  • Alevrit 001: 14.1m roubles; eight systems to be delivered

  • Alevrit 001.1: 13.9m roubles; five systems to be delivered

  • Alevrit FRTS: 390,000 roubles; nine systems to be delivered

The winner of the contract matched the starting price of 185,810,000 roubles.

Final deliveries are to be made by the end of 2015.

On December 21 the government released information about an MoD contract for 55 Vectronix Moskito laser distance gauges with nighttime observation capability and a Bluetooth channel. The starting price was set at 55m roubles (unit price 1.1m roubles).

The contract has been awarded to the sole bidder, Tekhsnabexport, after an auction announced on November 7, 2012. The company matched the starting price.

On December 24 the government released information about an MoD contract for components of the Tor-M1-2U SAM system. The contract, worth 5,703,564,429.15 roubles, has been awarded to OAO Izhevsk Kupol Electromechanics Plant, with the delivery deadline at the end of 2013. Deliverables include:

  • 12 9A331MU combat vehicles worth 4,732,474,438.92 roubles (unit price 394,372,869.91 roubles);

  • three 9V887M2U maintenance vehicles worth 236,781,773.13 roubles (unit price 78,927,257.71 roubles);

  • one 9V887-1M2U maintenance vehicle worth 79,942,951.77 roubles;

  • one 9F399-1M2U group SPTA set vehicle with 45,344,752.45 roubles;

  • six 9T244-1 transporter-loaders worth 156,802,700.16 roubles (unit price 26,133,783.36 roubles);

  • six 9T245-1 transporter-loaders worth 74,011,927.44 roubles (unit price 12,335,321.24 roubles);

  • one 9F116 rigging equipment set worth 3,799,373.12 roubles;

  • one 9S931 planning module worth 64,004,672.70 roubles;

  • one 9S931-1 planning module worth 50,277,584.16 roubles;

  • three 9S932-1 planning modules worth 260,124,255.30 roubles (unit price 86,708,085.10 roubles).

On December 25 the government released information about a Navy contract for 82 MR-231, 231-3 and 231-4 navigation radar stations for surface ships and submarines. The order was placed on November 15, 2012 with the sole bidder, OAO Gorizont (Rostov-on-Don). The delivery deadline is at the end of 2015.

The bidder matched the starting price of 326,038,010 roubles (average unit price 3,976,073.30 roubles).

Some 25 sets are expected to be delivered in 2013, 28 in 2014, and 29 in 2015, including 32 to the Northern Fleet, 19 to the Pacific Fleet, 12 to the Caspian Flotilla, 10 to the Black Sea Fleet, and nine to the Baltic Fleet.

On December 25 the government released information about an MoD contract for six sets of versatile training equipment for scuba divers. The notification about the open electronic auction was released on October 31; the auction itself was scheduled for December 10, 2012, and was aborted because there was only one bidder.

The contract has been awarded to OAO Okeanpribor Concern (St Petersburg) at the starting price of 801,333,810 roubles (unit price 133,555,635 roubles). Two sets apiece are to be delivered in 2013, 2014 and 2015 to the S&R Depot of the Navy’s 3rd Supply Base in Vologda.

The functionality of the complex includes training in the following areas: basic diver training; underwater shooting; free drops from a helicopter; using salvage pontoons; training the pilots of remote-controlled submersibles; and therapeutic recompression.

The notification about the open electronic auction was released on October 31.

On December 27 the government released information about a contract to develop an imitator of signals emitted by new-generation satellite navigation systems, which will be used by a select group of users (code name Dubler). The delivery deadline under the contract is the end of 2016; the notification about an open competition was released on November 9, 2012.

The contract has been awarded to ZAO Navigation Systems Design Bureau (KB NAVIS, Moscow). There was one other bidder, OAO MKB Kompas. The winning bidder offered the price of 257,900,000 roubles (down from the starting price of 258m roubles).

The R&D project includes the development of a versatile imitator of the existing and future signals of satellite navigation systems (GLONASS, GPS, GALILEO, and SBAS). These devices will be used by the MoD’s metrology centers to “test the performance of navigation equipment”. The contractor has been tasked with developing a fixed-position and mobile versions of the device (models IS-P and IS-M, respectively). The device must be capable of imitating the carrier’s movement at an altitude of up to 150,000 km, at a speed of up to 11 km/sec and with an acceleration of up to 1 km/sec2.

On December 29 the government released information about contracts for dismantling and disposing of NSK-65 test benches in the village of Nenoksa, Arkhangelsk Region (the Navy’s missile test range) in 2013-2015.

Two test benches are to be dismantled:

  • NSK-37, at the starting price of 89,198,800 roubles;

  • NSK-65, at the starting price of 141,840,900 roubles.

The results of the open competitions will be announced on February 28.

In December 2012 the government released information about four Navy contracts for batteries used in torpedoes. Following open electronic auctions, all four contracts have been awarded to the sole bidder, ZAO Elektroistochnik (Saratov). The following items are to be delivered in 2013:

  • 12 76STs-250D-1 torpedo batteries worth 96,259,068 roubles (unit price 8,021,589 roubles);

  • 17 336STs-80K-1 (SET-65) torpedo batteries worth 181,572,563 roubles (unit price 10,680,739 roubles);

  • nine 160STs-110K and 160 STs-110K-1 (TEST-71M) torpedo batteries worth 92,167,938 roubles (unit price 10,240,882 roubles);

  • 14 259STs-110K-1 (USET-80) torpedo batteries worth 232,586,970 roubles (unit price 16,613,355 roubles)?

The four contracts are worth 602,586,539 roubles.

The notifications about the open auctions were released in October-November; the sole bidder matched the starting price for all four contracts.

In December 2012 and January 2013 the government released information about the MoD’s 2013 fuel contracts. A total of 55 open electronic auctions were held; the overall starting price of the contracts was set at 14,234,399,933.3 roubles (for an average price of 447,890 roubles per tonne).

Out of the 10 largest lots, the auctions for five were aborted. Out of the remaining five, four have been awarded to OOO PromTekhResurs. The following are the five largest contracts signed so far:

  • OOO PromTekhResurs: 68,600 tonnes of TS-1 aircraft kerosene, worth 2,095,834,272 roubles (same as the starting price), to be delivered to Astrakhan and Rostov-on-Don;

  • OOO LUKOIL-Rezervnefteproduct: 47,500 tonnes of TS-1 aircraft kerosene, worth 1,400,407,825 roubles (down from the starting price of 1,436,315,925 roubles), to be delivered to Moscow;

  • OOO PromTekhResurs: 14,000 tonnes of summer diesel, worth 468,476,540 roubles (same as the starting price), to be delivered to Murmansk;

  • OOO PromTekhResurs: 12,870 tonnes of RT aircraft kerosene, worth 428,842,814.4 roubles (down from the starting price of 430,997,895.9 roubles), to be delivered to Chita;

  • OOO PromTekhResurs: 12,500 tonnes of summer diesel, worth 402,915,750 roubles (same as the starting price), to be delivered to St Petersburg?

The beneficial owner of OOO PromTekhResurs is Yevgeniy Petrovich Chuvashin; according to media reports, he is a top manager at Lukoil.

On January 14 the government announced the winner of an open electronic auction for an MoD contract for 526 paper shredders and other technical instruments for the disposal of paper documents. The contract was announced on December 5, 2012.

There were two bidders; the winner is OOO Akvatel (Moscow), which offered the price of 15,267,297 roubles, down from the starting price of 15,499,794.54 roubles.

On January 23 the government released information about an MoD contract for uniforms worth 1,629,835,075.99 roubles (the starting price was set at 1,638,025,202 roubles). The contract was announced on April 4, 2012.

The auction attracted 12 bidders; the winner is the OOO OPTIMA textile company, which has been contracted to deliver the following items:

  • 500,000 Type a summer field uniforms, Tsifra-type camouflage pattern, worth 540,484,000 roubles (unit price 1,080.97 roubles);

  • 300,000 Type a winter field uniforms (jacket and trousers), Tsifra-type camouflage pattern, made of polyester-viscose material, worth 764,160,000 roubles (unit price 2,547.2 roubles);

  • 1,014,000 textile undershirts, Tsifra-type camouflage pattern, worth 147,303,780 roubles (unit price 145.27 roubles);

  • 1,414,000 cotton textile underpants, Tsifra-type camouflage pattern, worth 175,866,249.79 roubles (unit price 124.4 roubles);

  • 600 Type B summer field uniforms, Tsifra-type vat-colored camouflage pattern, for senior officers, worth 667,846.2 roubles (unit price 1,113.08 roubles);

  • 400 Type B winter field uniforms (jacket and trousers) made of polyester-viscose material, Tsifra-type camouflage pattern, for senior officers, worth 1,353,200 roubles (unit price 3,383 roubles).

On January 28 the government released information about an open competition for an MoD contract for an R-849M1(M) upgraded mobile communication station.The station should be mounted on a UAZ-396219 chassis (UAZ-396218) and carry R-168-100KB and R-999 B2 radios, antennas, a mobile computational complex, and other equipment. It should be able to work in mobile and stationary mode in Short Wave, Medium Wave 1, and Medium Wave 2 — Decimeter Wave bands.

The starting price of the contract has been set at 15,498,870 roubles.

The auction has been scheduled for March 1, 2013.

On January 29 the government released notifications about three open electronic auctions for an MoD contract for dynamic computer-based combat simulators, including:

  • two TEK-916-RDP dynamic computer-based combat simulators for training BMD-2 airborne infantry fighting vehicle crews, at the starting price of 16,132,000 roubles (unit price 8,066,000 roubles);

  • two TVK-916-D dynamic computer-based driving simulators for training BMD-2 airborne infantry fighting vehicle crews, worth 9,544,000 roubles (unit price 4,772,000 roubles);

  • two TVK-184-D dynamic computer-based driving simulators for training T-72B MBT crews, worth 9,984,000 roubles (unit price 4,992,000 roubles).

All the auctions have been scheduled for February 25, 2013.

On January 30 the government released a notification about an open electronic auction for a Navy contract for a PZh-61M (Project 824M) floating medium-heavy reinforced concrete dock, to be delivered in 2014. According to contract specifications, the dock should be able to accommodate surface ships and submarines of up to 5,000 t.

The starting price of the contract has been set at 165,107,710 roubles. The dock will be assigned to the Black Sea Fleet, and delivered to Novorossiysk.

On January 31 the government released information about an MoD contract for a TRANSAS TAT PRO MAZ-543 driving simulator for training MAZ-543 truck drivers, to be delivered in 2013. After an open electronic auction held on November 27, the contract was awarded to ZAO Transas (St Petersburg) at 7,042,677.78 roubles. The company is to deliver five simulators (unit price 1,408,535.58 roubles). There were two other bidders.

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