PAUL LEWIS / WASHINGTON DC

Brazilian air force F-X fighter competition complicated by Embraer-Dassault agreement to propose Mirage 2000BR

Manufacturers considering bids for the Brazilian air force's F-X fighter competition are struggling to find means to comply with the 100% offset requirement, which has been made more difficult by Embraer's decision to team exclusively with equity partner Dassault to propose the Mirage 2000BR.

The recently released Brazilian request for proposals (RFP) contains broad guidelines for industrial co-operation and technology transfer worth the full value of the anticipated $700 million cost of 12 to 24 fighters. The document prioritises direct and indirect offset investment in the aerospace/defence and power industry sectors.

"We're concerned about the fact that Embraer is taking such a strong stand about not even meeting with us to discuss a potential F/A-18 Hornet sale. We're more than willing to work with Embraer and it's in everyone's best interest to transfer technology to Brazilian industry," says Dave Ziggler, Boeing campaign manager for Brazil.

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RFP recipients have been given until 1 October to submit bids. A shortlist will be selected, with the announcement of a final winner targeted for January. Expected contenders in addition to the Mirage are the Boeing F/A-18E/F, Alenia offering the Eurofighter Typhoon, Lockheed Martin F-16C/D Block 50 Plus, RSK MiG-29 Fulcrum, Saab-BAE Systems Gripen and Sukhoi Su-27. EADS is understood to have dropped plans to offer the Mako.

Embraer president Mauricio Botelho last week reiterated the firm's intent to support the Mirage 2000BR.Embraer would also produce any other Mirage 2000-5s sold in Latin America. Dassault, with Snecma and Thales, took a 20% stake in Embraer in 1999.

The size of the initial Brazilian requirement by itself is likely to make licence production expensive, according to prospective bidders. Instead, they are suggesting first transferring parts manufacture and assembly and expanding the degree of local collaboration as the F-X requirement increases. Brazil had earlier stated a need for up to 72 fighters to replace its Dassault Mirage IIIEA/DA and, eventually, Northrop F-5BRs.

Other potential pitfalls for US manufacturers include Brazil's requirement for full software source code access, which the US Government has traditionally resisted, and the supply of an accompanying active-guided beyond visual range missile. Washington DC has to date refused to sell the Raytheon AIM-120 AMRAAM missile to South America, although this could change with evidence that Peru now has the comparable Vympel R-77 (RVV-AE/AA-12 Adder).

Source: Flight International