As Turkey's defense spending procedures for commercial deals have evolved into those aligned with 'today's global conditions' of the defense sector, the Pentagon is getting squeezed out of the race by the US's own relatively highly restrictive spending procedures
ÜMIT ENGINSOY
WASHINGTON - Turkish Daily News
In unusually candid remarks, the U.S. Defense Department has chided the Turkish defense procurement agency's acquisition policies, saying the current approach hampered Ankara's military modernization and U.S.-Turkish defense industry cooperation.
"The state of defense industry cooperation [with Turkey] is an issue of concern. While there are a number of promising projects either underway or under consideration, the defense industry relationship has been stagnant for the past several years," Dan Fata, deputy assistant secretary of defense for Europe and NATO, told a congressional hearing on U.S.-Turkish relations on Friday.
"We remain concerned that the current approach of Turkey's defense procurement [agency] towards contracting prevents U.S. companies from bidding," Fata said, referring to the Undersecretariat for Defense Industries (SSM), Turkey's procurement organization. "It is also hindering Turkey's military modernization, interoperability with NATO allies and U.S.-Turkey defense industry cooperation."
Fata was testifying before the House Foreign Affairs Committee's subcommittee on Europe.
"A much-needed re-alignment of Turkey's procurement priorities would reinforce a critical element of our strategic relationship," he said.
In his written testimony Fata said: "Onerous terms and conditions - liability, work share, technology transfer, and upfront U.S. government approval requirements in Turkey's standard contracts - have kept U.S. firms from bidding."
"Until Sikorsky [Aircraft] finalized a sale of 17 [S-70B] Seahawk [naval] helicopters last fall, no U.S. firm had won a major direct commercial sale since 2002," he said.
Introducing a standard procedure for commercial deals in 2004, the SSM has since then been seeking upfront government sale guarantees from all foreign contenders in newly launched programs. But under U.S. export laws and regulations, the State Department, the Pentagon and eventually Congress can approve a deal only after a contract has been signed.
In the last few years the two countries' conflicting regulations have prevented U.S. companies from bidding for Turkey's programs for attack helicopters, training aircraft and a military satellite. But for the helicopter gunship and trainer programs, U.S. firms have proposed alternative direct sales under U.S. Foreign Military Sales (FMS) loans.
Although the military and SSM are sometimes divided over the procurement agency's methods, their officials were united in blaming the U.S. side on most difficulties. "The United States is known as a notorious supplier for its extremely strict export rules and reluctance for transfer technology," said one senior Turkish military official. "Today in many cases there is a multitude of suppliers. If or when the United States is reluctant to give something, there are other countries willing to sell it. So we don't have to buy such items from the United States."
"Before criticizing us, Washington should reconsider the wisdom of its export procedures which do not fit into today's global conditions," said one procurement official.
The U.S.-Turkish dispute is mainly on commercial sales, in which SSM launches an international competition and collects bids from contenders, following which the country's decision-making committee selects a winner.
But most U.S.-Turkish defense programs are in the form of FMS schemes, in which purchasing governments use U.S. loans for U.S.-made equipment.
In Turkey's largest defense procurement program in history, Ankara early this year formally selected the U.S.-led F-35 Joint Strike Fighter as its Air Force's next generation fighter aircraft. It plans to pay more than $10 billion in an FMS deal for nearly 100 aircraft over the next 20 years.
Another FMS program worth $1.6 billion for the upgrade of the Turkish Air Force's current F-16 fighter fleet is continuing. Talks are continuing for another planned FMS deal for the purchase of 30 new more advanced F-16 Block 50 aircraft.
Turkish Daily News, LINK
Editor's comment : In fact , it seems Turkey is bashing US Military sales policy. Defense industry is becoming a very competitive market, costumer satisfaction and providing solutions based on costumer needs would become a must. Politically motivated alliance based sale policies (which are against costumer's interests) would shift to costumer loyalty programs. It seems it is what Turkey push for and it is what US state (not companies) failed to understand and missed a huge share in procurements..
ÜMIT ENGINSOY
WASHINGTON - Turkish Daily News
In unusually candid remarks, the U.S. Defense Department has chided the Turkish defense procurement agency's acquisition policies, saying the current approach hampered Ankara's military modernization and U.S.-Turkish defense industry cooperation."The state of defense industry cooperation [with Turkey] is an issue of concern. While there are a number of promising projects either underway or under consideration, the defense industry relationship has been stagnant for the past several years," Dan Fata, deputy assistant secretary of defense for Europe and NATO, told a congressional hearing on U.S.-Turkish relations on Friday.
"We remain concerned that the current approach of Turkey's defense procurement [agency] towards contracting prevents U.S. companies from bidding," Fata said, referring to the Undersecretariat for Defense Industries (SSM), Turkey's procurement organization. "It is also hindering Turkey's military modernization, interoperability with NATO allies and U.S.-Turkey defense industry cooperation."
Fata was testifying before the House Foreign Affairs Committee's subcommittee on Europe.
"A much-needed re-alignment of Turkey's procurement priorities would reinforce a critical element of our strategic relationship," he said.
In his written testimony Fata said: "Onerous terms and conditions - liability, work share, technology transfer, and upfront U.S. government approval requirements in Turkey's standard contracts - have kept U.S. firms from bidding."
"Until Sikorsky [Aircraft] finalized a sale of 17 [S-70B] Seahawk [naval] helicopters last fall, no U.S. firm had won a major direct commercial sale since 2002," he said.
Introducing a standard procedure for commercial deals in 2004, the SSM has since then been seeking upfront government sale guarantees from all foreign contenders in newly launched programs. But under U.S. export laws and regulations, the State Department, the Pentagon and eventually Congress can approve a deal only after a contract has been signed.
In the last few years the two countries' conflicting regulations have prevented U.S. companies from bidding for Turkey's programs for attack helicopters, training aircraft and a military satellite. But for the helicopter gunship and trainer programs, U.S. firms have proposed alternative direct sales under U.S. Foreign Military Sales (FMS) loans.
Although the military and SSM are sometimes divided over the procurement agency's methods, their officials were united in blaming the U.S. side on most difficulties. "The United States is known as a notorious supplier for its extremely strict export rules and reluctance for transfer technology," said one senior Turkish military official. "Today in many cases there is a multitude of suppliers. If or when the United States is reluctant to give something, there are other countries willing to sell it. So we don't have to buy such items from the United States."
"Before criticizing us, Washington should reconsider the wisdom of its export procedures which do not fit into today's global conditions," said one procurement official.
The U.S.-Turkish dispute is mainly on commercial sales, in which SSM launches an international competition and collects bids from contenders, following which the country's decision-making committee selects a winner.
But most U.S.-Turkish defense programs are in the form of FMS schemes, in which purchasing governments use U.S. loans for U.S.-made equipment.
In Turkey's largest defense procurement program in history, Ankara early this year formally selected the U.S.-led F-35 Joint Strike Fighter as its Air Force's next generation fighter aircraft. It plans to pay more than $10 billion in an FMS deal for nearly 100 aircraft over the next 20 years.
Another FMS program worth $1.6 billion for the upgrade of the Turkish Air Force's current F-16 fighter fleet is continuing. Talks are continuing for another planned FMS deal for the purchase of 30 new more advanced F-16 Block 50 aircraft.
Turkish Daily News, LINK
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Editor's comment : In fact , it seems Turkey is bashing US Military sales policy. Defense industry is becoming a very competitive market, costumer satisfaction and providing solutions based on costumer needs would become a must. Politically motivated alliance based sale policies (which are against costumer's interests) would shift to costumer loyalty programs. It seems it is what Turkey push for and it is what US state (not companies) failed to understand and missed a huge share in procurements..
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