ST Kinetics in contention for US Marine Corps contract

Total value of the contract with all options exercised is about S$1.63 billion.

SINGAPORE — Singapore defence company Singapore Technologies (ST) Kinetics has cleared a hurdle to go heads-up with a British firm for a US$1.2 billion (S$1.63 billion) contract with the United States Marine Corps.

ST Kinetics had earlier been awarded a US$121.5 million contract to supply 13 amphibious combat vehicle prototypes, known as Terrex 2, to the US Marine Corps. But a competitor, General Dynamics Land Systems, had challenged the US Marine Corps’ evaluation in not awarding the tender to its lower-rated, lower-priced proposal.

A statement from the US Government Accountability Office (GAO) on March 15 concluded that the Marine Corps’ evaluation of the General Dynamics proposal was reasonable and consistent with the evaluation scheme identified in the solicitation.

It added: “GAO also concluded that the decision to select SAIC’s higher-rated, but higher-priced proposal was within the agency’s discretion when conducting a best-value procurement.”

With the ruling, ST Kinetics gets into the first phase of a two-step procurement process. It will compete for the contract to supply the US Marine Corps with more than 200 vehicles by 2020, against BAE Systems. Each contractor has to build 13 vehicles for field tests by the Marine C