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Brazil Picks TKMS for New Corvettes

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Title : Brazil Picks TKMS for New Corvettes
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Brazil Picks TKMS for New Corvettes

The Brazilian Navy (MB), continuing the Strategic Program "Construction of the Naval Power Core," announced today that the final proposal of the "Águas Azuis" Consortium, dated March 8 of 2019, was selected as the best offer for the construction project of the "Tamandaré" Class Corvettes.

1 - The Process of Selection of the Best Offer

The selection process, which employed the expertise of the MB staff, had technical support in specific areas from the Getúlio Vargas Foundation (FGV) and the National Bank for Economic and Social Development (BNDES).

Its development took 15 months from the disclosure of the RFP n° 40005 / 2017-001, on December 19, 2017.

During this period, several successive phases were carried out: Questioning; Analysis and Refinement of Proposals; and Negotiation, involving the issue of 386 (three hundred and eighty-six) circulars between the project management and the bidders.

The selection process adopted by MB was based on two basic decision-making tools: Multicriteria Decision Analysis (AMD) and Risk Analysis. AMD alone evaluated 215 criteria.

These criteria were established in a matrix form, with the participation of specialists from the Technical Offices and the Budgetary / Financial Sector of MB, covering the following areas of analysis:
-- Platform;
-- Combat Systems;
-- Communications & IT;
-- Aircraft;
-- Commercial Proposal and Taxes;
-- Technical Capacity of National Shipyards;
-- Life cycle; and
-- Transfer of Technology, Compensation and Local Content.

The first level of the AMD was composed of four major criteria, which were the central areas of interest for the selection process:
-- Ship Performance
-- Lifecycle
-- Business Model
-- National Industry Share

The second instrument of the same degree of importance for the selection of the Best Offer was based on a permanent Risk Analysis in the various phases of the process, in the light of the guidelines issued in Decree No. 9.203 / 2017 and other related instruments and guidelines.

These documents define the good practices of public governance, principles and guidelines, with the purpose of providing greater technical and legal security to the decision-making process.

For the purpose of surveying the events (risks, problems, opportunities or benefits), similar to AMD structuring, the proposals were analyzed based on the same central areas of interest for the selection process, as previously described.

In addition, the events related to the legal / fiscal and economic / financial capabilities of the Consortium shareholders' companies, the companies identified as beneficiaries for the technology transfers of the Combat Management Systems and the Platform (ToT of the CMS and IPMS), as well as the national shipyards involved.

2 - The winning consortium and the future "Tamandaré" class

The selected consortium reached in the selection phase the Local Content Indexes of 31.6% for the first ship, and an average of 41% for the other ships in the class. It is formed by the companies ATECH Negócios em Tecnologias SA, Embraer SA and Thyssen Krupp Marine Systems GmbH (TKMS).

The following companies will be subcontracted: Atlas Elektronik, Alliance S.A. Shipyard and L3 MAPPS.

The selected proposal presents a project of an Intellectual Property Ship (NAPIP) of the German company TKMS, based on the ships of the "MEKO A100" class.

The future corvettes of the Tamandaré-class will have the following characteristics of the Platform and the Combat System:

-- Length: 107.2 meters
-- Beam: 15.95 meters
-- Draught: 5.2 meters
-- Displacement: 3,455 tonnes
-- Propulsion: 4 MAN 12V 28/33 DSTC diesel engines
-- Economic Cruising speed: 14 knots
-- Electrical power: Caterpillar C32 diesel generators.

3 - EMGEPRON and the contractual formalization

EMGEPRON will initiate the actions for the signing of the contracts with the future SPE "Águas Azuis" as contractor of the procurement project for the construction of the Tamandaré-class corvettes.

The Principal Contract and the other Associated Contracts (Transfer of Technology, Integrated Logistic Support and Compensation), for the acquisition of up to four ships will be preferably signed by the end of this year, in accordance with the conditions set forth in RFP nº 40005 / 2017-00.

In addition, the structuring of ship life cycle management, including the Service Support contract (after-sales maintenance), will be negotiated for the first time by the Brazilian Navy.

This initiative, depending on the success achieved, will contribute to a greater operational availability of the future ships during their entire lifecycle, in addition to contributing to a greater business continuity for the Defence Industrial Base.

The forecast of the definitive delivery of the ships to MB is planned for the period between 2024 and 2028, with the possibility of generating about 2,000 direct jobs and 6,000 indirect jobs.

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The Águas Azuis Consortium, formed by Thyssen Krupp Marine Systems, Embraer Defense & Security and Atech, was selected as preferred bidder by the Brazilian Navy for the construction of four naval ships in the Tamandaré Corvettes Class program (CCT).

The result was announced today, March 28nd, and represents a new milestone for the country's maritime defense and naval industry.

With Thyssen Krupp Marine Systems leadership and its naval systems expertise, the Águas Azuis Consortium companies will now form a SPC (Specific Purpose Company) for the implementation phase of the program.

Based on a long-term relationship and strong presence in Brazil, the companies and their subsidiaries have built a solid national partnership with proven capability to retain technology and ensure its development not only for the CCT Program, but also for future strategic defense projects in the country.

"We are very honored by the Brazilian Navy to entrust us with the mission to build the Tamandaré Corvettes Class. Being part of the CCT Program reinforces our leadership position and the proven technologies we have offered to the naval defense industry around the world for almost two centuries”, said Dr. Rolf Wirtz, CEO of Thyssen Krupp Marine Systems.

"This partnership will bring high-skilled jobs and technology to

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Brazil, strengthening its defense industry”, Wirtz adds.

"In this consortium with Thyssen Krupp Marine Systems, we offer a solid national partnership model with proven capability to retain the transfer of technology, ensuring its development for future strategic defense projects in Brazil. We have always been confident and the today’s result demonstrates that our proposal has truly addressed the operational needs of the Brazilian Navy”, said Jackson Schneider, President and CEO of Embraer Defense & Security.

National Sovereignty

With the CCT Program, the Brazilian Navy will expand and modernize its fleet. With four corvettes scheduled for delivery between 2024and 2028, the Navy will now have new escort ships to counter possible threats, ensure the protection of maritime traffic, and control the Brazilian jurisdictional waters, the so-called Blue Amazon, which totals over 4.5 million km². The escort ships will also play an important role in peace and humanitarian aid missions, in contribution to the Brazilian diplomacy.

The CCT Program will bring real contributions to the Brazilian economy:

-- Local content of more than 40% during ships building and the development of state-of-the-art systems;

-- Generation of more than 1,000 direct jobs and approximately 4,000 indirect jobs;

-- Competitiveness to meet the future demands of the Brazilian Navy and export of naval defense products;

-- Inclusion of research and development centers;

-- In-service support capability to a high-tech and long-life product.

The program contemplates a solid transfer of technology (ToT) in the naval engineering for military shipbuilding, combat and platform management systems.

One of the most modern shipyards in Brazil, Aliança-Oceana, will act as the ship-builder of the Águas Azuis Consortium, as well as transfer of technology (ToT) receiver of military shipbuilding. Located in Itajaí (Santa Catarina State), a region with a strong vocation for shipbuilding, the shipyard is part of Oceana Offshore Group, a company with more than 20 years’ experience in shipbuilding and offshore maritime operations.

With approximately 310,000 square meters, Oceana has the capacity to build 4 to 6 ships per year, and applies the most innovative engineering and construction processes, with a high level of automation and cutting-edge technology. It also has facilities located in Niterói (Rio de Janeiro State), which can serve as logistics and services support base for the Brazilian Navy.

Atech, an Embraer Group company, will be the supplier of CMS (Combat Management System) and IPMS (Integrated Platform Management System) of the Tamandaré Class corvettes and receiver of transfer of technology (ToT) in cooperation, with Atlas Elektronik, a subsidiary of Thyssen Krupp Marine Systems, and L3 MAPPS.

Located in Rio de Janeiro (RJ) and São Paulo (SP), Atech has 500 engineers specializing in software and hardware development for defense applications and has unique expertise in systems engineering and situational awareness technologies of decision-making.

Embraer Defense & Security will integrate sensors and weaponry into the combat system, bringing the program to its 50years’experience in in-service support solutions.

The MEKO class - authentic ship for blue waters

The Águas Azuis Consortium presented to the Brazilian Navy a proposal based on the concept of the MEKO class, a world reference through proven solutions in shipbuilding. Its modular design facilitates local integration and transfer of technology, helping to reduce acquisition, maintenance and modernization costs.

Combining state-of-the-art technology, innovation and robust combat capabilities, the MEKO class is a true blue-water vessel. These vessels have exceptional qualities of [range] and robustness. As a result, several Navies from all over the world have a flexible, versatile combat platform and a general naval environment for diversified mission profiles.

Since 1982, 82 MEKO-class corvettes and frigates have been delivered to Navies from 14 different nations, 37 of which were produced outside Germany and all still in full operation -offering a life cycle of more than 40 years. This class combines the benefits of five generations of ships, thanks to its design iteration, whereby the best design characteristics of each vessel evolve into the next, ensuring that the new generations have solid, proven maturity, technology, materials and standards.

Thyssen Krupp Marine Systems is one of the world’s leading system suppliers for submarines and naval surface vessels as well as for maritime security technologies. With nearly 5,500 employees, the company has a history of naval shipbuilding that dates back centuries and offers state-of-the-art technologies, innovations and extensive and dependable services to customers around the world. Thyssen Krupp Marine Systems is part of the Thyssen Krupp Group.

The Atlas Elektronik Group holds a leading position in all fields of maritime high technology, including command & control systems for submarines and surface vessels, sonars and sensors, mine warfare systems, heavyweight torpedoes, coastal surveillance systems and in-service support. Atlas has established a worldwide customer portfolio. The naval electronics specialist is a Thyssen Krupp company, and has a workforce of around 2,200 highly skilled employees.

Embraer Defense & Security is the leading aerospace and defense industry in Latin America. In addition to the A-29 Super Tucano light attack and advanced trainer and the multi-mission KC-390 military airlift, it provides a full line of integrated solutions and applications such as Command and Control Center (C4I), radars, ISR (Intelligence, Surveillance & Reconnaissance) and space. Embraer Defense & Security products and solutions are present in more than 60 countries.

Recognized as a Brazilian "System House", Atech has always been guided by innovation in order to help transform the country. With unique expertise in systems engineering and situational awareness technologies and support for decision making, Atech works to develop innovative solutions with applications in the areas of air traffic, command and control systems, cyber security, instrumentation and control systems, embedded systems, simulators and logistics.

The company is responsible for the development and modernization of the entire system for the management and defense of Brazilian airspace. For its performance, the company is recognized and certified as a Strategic Defense Company by the Brazilian Ministry of Defence.

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