Restoration of tactical surveillance balloon acquisition program: Will SK Telecom be up for the Re-tender?

The acquisition program to incorporate two tactical surveillance balloons had been planned for December 2010 but was put on hold after the Prime Contractor, SK Telecom, waivered to execute the contract and returned the entire investment of KRW 13.5 billion to DAPA. Although SK Telecom had acquired the original contractor of the Program, the US Government disallowed test and evaluation on the balloon in the US due to security concerns. DAPA plans to levy penalty from SK Telecom, but there no sanctions to limit SK Telecom from participating in the re-tender, which has been planned to be issued upon the ROKMC’s request. Feasibility studies will begin next month to decide on domestic development or foreign direct acquisition and source selection is planned for 2017.

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