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Egypt – Future Fast
Missile Craft (FMC)/Fast Attack Craft (FAC)
Rewritten – May 2001 HOT NEWS: August 2001, November 01
Program Status: In progress. In January of 2001, the Egyptian Navy (EN) announced that it had selected Halter Marine to provide four Ambassador Mk III fast attack craft (FAC) for this program. On 01 July 2001, the Egyptian Armament Authority approved the contract, and forwarded it to the Ministry of Defense for final approval. Operational Requirement: The EN has a requirement for a force of modern FAC to conduct independent and joint surveillance and strike operations against surface shipping and armed surface adversaries in the littoral waters of the Mediterranean and Red Seas. Such operations are intended to insure the use of coastal sea lines of communication (SLOCs) by Egyptian forces, and deny the same use by potential adversaries. Mission contingencies require a FAC with anti-air warfare (AAW), anti-surface warfare (ASuW), and electronic warfare (EW) capabilities that will allow it to operate in a moderate to high threat environment. Signature reduction, high speed, and maneuverability are required for the FAC to conduct the anticipated pursuit, intercept, and engagement scenarios. Program Background: Since the mid-1990s, the EN has been considering the procurement of a new FAC to begin replacing many of the FAC currently in inventory, most of which are past their effective service lives. Currently, the EN has twenty-one FAC in its inventory:
It must be noted that the Egyptian Government refers to its current FAC procurement as its Fast Missile Craft (FMC) Program, apparently viewing that phrase as less politically sensitive than Fast Attack Craft. No formal solicitations were issued until July 1999; however, the EN received a number of unsolicited bids prior to that date including:
In early 1999, the U.S. Naval Sea Systems Command (PMS-380) tasked Naval Surface Warfare Center, Carderock Division, Detachment Norfolk, to determine the feasibility of meeting the Egyptian FAC requirements using a modified Cyclone (PC-14) design. The Egyptians reportedly had concerns with the use of the Cyclone class hull as the basis for their new FAC. The Cyclone hull design is based on the same Vosper Thornycroft design used by Egypt for their Ramadan class, yet the Cyclone design is heavier and lacks the weapons load-out found in the Ramadan. From the Egyptian perspective, the Cyclone design, as it exists in the US Navy inventory, does not have sufficient weight margin to include a 76mm gun mount, Rolling Airframe Missile (RAM), Harpoon, and Phalanx. The feasibility study conducted by the Carderock ultimately concluded that most of Egypt’s FAC requirements, as were specified in late 1998/early 1999, could be met within the modified Cyclone design, but there were some significant shortfalls. For example, to modify the Cyclone design to meet Egypt’s needs Carderock recommended:
Based on these shortfalls, the modified Cyclone design, as proposed by PMS-380 was probably dropped from future consideration. Additionally, the US Navy estimated that the cost of four modified Cylcone class FACs would be around US$610.1M, which probably exceeded the EN’s budget. While Carderock was conducting the design feasibility study, PMS-380 also went out to US Industry requesting Pricing and Acceptance (P&A) for various US systems to go aboard the FAC, including the Phalanx CIWS, the RAM system, and 76mm guns. The P&A request was written as if these systems would be Government Furnished Equipment (GFE) for the program. However, the EN preferred that the selected shipbuilder would buy these systems direct in order to reduce costs. In March of 1999, at a meeting of the Joint Egyptian/US Military cooperation Council, the Government of Egypt asked the Naval Sea Systems Command to help manage the procurement of their future FAC project. Subsequently, Egypt issued a contract valued at approximately US$1M to NAVSEA (PMS-380 and PMS-325) for advisory assistance on the FAC procurement. On 22 July 1999, Egypt issued a Request for Quotation (RfQ) for the FAC Program, with bids due no later than 15 October 1999. The RfQ was issued to US shipyards to procure four FAC and associated support and services, using a Direct Commercial Sales (DCS) Contract and US Foreign Military Funding (FMF). The following seven US shipyards were probably included on the bidder list:
Subsequent to receiving the RfQ, Ingalls and Avondale (then the principal components of Litton Ship Systems) elected not to submit bids. In late 1999, the bidders list was down-selected to five shipyards including Halter Marine, Bollinger Shipyards Inc., Marinette Marine, Swiftships Inc., and Bender Shipbuilding and Repair Company, Inc.. By 22 August 2000, the list was further shortened to the final three shipyards (Halter Marine, Marinette Marine, and Bollinger Shipyards Inc). On 25 August 2000, the final three were involved in a face-to-face shootout exposing all the details of the program including the best and final offer. On 03 January 2001, Halter Marine announced that it had been selected by the EN to provide four Ambassador Mk III class FAC to satisfy its FMC program requirement. The program was valued at US$406M (US$200M from FMA and US$206M financed over five years), including construction, all weapons, integration, spare parts and technical services. Halter Marine will probably have an extremely difficult time delivering the total package for the reported US$406M price tag. Industry sources suggest that the program was under-bidded by as much as 33%, to assure a Halter Marine contract. Privately, the EN also expressed concern over the cheapness of the price quoted, and initially demanded a high-priced performance bond to guarantee the delivery, and assurances that there would be no cost overruns. On 19 April 2001, Halter Marine’s parent company, Friede Goldman Halter (FGH) announced that it had filed a petition for relief under Chapter 11 of the US Bankruptcy Code, which allows for reorganization of the company’s debt. Several weeks earlier, FGH had attempted to refinance its debt without success. Forward leaning statements by Halter Marine suggest that the EN contract will not be affected by the filing of Chapter 11. On 01 July 2001, the Egyptian Armament Authority approved the contract, and forwarded it to the Ministry of Defense for final approval. By the end of July 2001, Halter Marine will meet with the Armament Authority to demonstrate its financial ability to continue with this program. Due to its financial situation, Halter Marine probably will not be able to acquire the required performance bond. However, the EN may be proceeding without the bond, and instead levying additional requirements on Halter Marine. Sources indicate that the Egyptian Government will conduct audits on Halter Marine every three months to ensure its financial ability to continue with the program. Sources also indicate that the Defense Security Cooperation Agency (DSCA) approved the contract in its current form, which probably includes amendments concerning the Egyptian Government’s right to audit Halter Marine’s financial records. Program Acquisition Plan: On 01 July 2001, the Egyptian Armament Authority approved the contract with Halter Marine, and forwarded it to the Ministry of Defense for final approval. Approval will probably come before the end of 2001, with construction commencing in 2002. The first unit is scheduled to be delivered by 2005 followed by one unit per year. The following acquisition plan, for a buy of four units valued at US$101.5M each, is projected:
Design and Construction Considerations: When the EN released its initial FAC solicitation in July 1999, general characteristics included a vessel that would be fully operational in conditions up to Sea State 4 and able to survive through Sea State 6. It would be of welded construction using materials consistent with specified structural strength, reduced maintenance, and weight requirements. Builders were to use superstructure materials that enhance signature reduction, reduced maintenance, and weight. Additionally, the FAC would be designed and constructed to provide a service life of at least twenty years with minimum maintenance and repair. This service life is predicated on an operational profile that has the FAC on patrol for eight days each month. The remainder of the time the FAC would be pier side in a reduced availability status. The expected propulsion plan operating hours per engine was 2400 hours per year. The ship’s notional maintenance cycle includes a maintenance availability and dry-docking every 24 months. The EN would provide cryptographic, identification friend or foe (IFF), and fueling at sea equipment as Government Furnished Property (GFP). Wherever economically feasible, the FAC design was to incorporate automation and ship equipment performance monitoring technology to minimize crew requirements. The EN’s specifications call for a crew of 36, which is seen as the minimum needed to be able to operate the ship for up to eight hours at General Quarters (Condition I) and for up to eight days of sustained at-sea operations with weapons and sensors manned at Wartime Cruise (Condition III). Additional weapon and sensor system requirements as identified in the solicitation: An integrated bridge system. · External communications system.· Tactical data links.· A combined air/surface surveillance radar system capable of 3D-target designation, and electronic counter counter measures (ECCM) capable.· Signaal’s (now Thales Nederland) Scout navigation radar system.· A fire control system capable of using automatic acquisition and tracking, including passive track ability of targets, with extensive ECCM capability.· A lightweight shipboard Electro-Optical system.· Electronic Support Measures/Electronic Countermeasures suite (ESM/ECM) with 360-degree coverage.· Four decoy launchers for 360-degree coverage.· Eight Boeing Harpoon surface-to-surface missiles (SSMs).· Point defense missile system comprising the Raytheon Mk 49 guided missile launching system for the Rolling Airframe Missile (RAM)· Raytheon Mk 15 Mod 21 (Block IB) Phalanx close-in-weapons system (CIWS).· United Defense LP Mk 75 Dual-purpose 76mm/62 super rapid-fire gun (upgraded and overhauled).· Two M60 general-purpose removable machine guns.The combat management system (CMS) was to be of multi-role capability with anti-air (AAW), anti-surface (ASuW), electronic warfare (EW), and active and passive countermeasure capabilities. Lockheed Martin Naval Electronics & Surveillance Systems – Undersea Systems was chosen as the CMS system provider and integrator by Halter Marine, and will provide a flexible state-of-the-art design based on commercial-off-the-shelf technology. Ship Characteristics based on the Halter Marine Ambassador Mk III design:
Key Personnel:
Mr. Grant Corcoran
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