May 1st, Support Promise at Meeting with Newly Elected Members of the National Assembly
Ulsan City has resolved to continuously carry out the lead ship project of the Korean next-generation destroyer (KDDX) by HD Hyundai Heavy Industries along with the 22nd National Assembly members-elect.
Chungmugong Yi Sun-sin Ship. [Image source=Defense Acquisition Program Administration official blog]
On May 1st at 10 a.m., the city announced that it made this resolution at the '22nd National Assembly Members-Elect Meeting' held in the situation room on the 7th floor of the Ulsan City Hall main building, and promised to coordinate with the central government to provide support.
Currently, the Korean next-generation destroyer project is in the bidding process aiming for construction within the year, with HD Hyundai Heavy Industries conducting the basic design.
However, recently, a competing company has claimed that the competition should be reopened during the middle of the research and development project, to which HD Hyundai Heavy Industries has responded that this is an unreasonable claim against laws and principles.
According to the Defense Acquisition Program Administration's (DAPA) request for proposal for the basic design project and related regulations such as the Defense Acquisition Program Act, the company that conducts the basic design is designated to carry out the detailed design and shipbuilding of the lead ship.
In other words, if a company is designated for the basic design, it is specified that the subsequent detailed design and shipbuilding project will also be assigned to the same company through a sole-source contract.
HD Hyundai Heavy Industries had already submitted materials related to the detailed design and lead ship construction according to DAPA's request for proposal when selected as the basic design company, and has also made investments while performing the basic design.
Therefore, if the project execution company is changed through competitive bidding, due to the highly complex nature of the KDDX project, there are concerns about project delays and increased costs, leading to a large-scale national loss. It is also expected to have negative effects such as employment disruption in the Ulsan regional economy.
Accordingly, Ulsan City and the members-elect of the National Assembly have united their will and promised to cooperate and coordinate with the central government to ensure that the Korean next-generation destroyer (KDDX) project is not halted and can be continuously promoted.
Mayor Kim Doo-gyeom said, “HD Hyundai Heavy Industries is a leading K-defense export company in Korea and plays an important role in the regional economy,” adding, “I hope the local political circles will also take an interest and join forces so that HD Hyundai Heavy Industries can responsibly carry out the Korean next-generation destroyer (KDDX) project.”
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