The military plans to increase the amount of work it contracts out to the private sector over the next decade, the Ministry of National Defense (MND) said yesterday.
The ministry predicts it will increase the dollar figure of private-sector work from the current NT$54.6 billion to NT$90.6 billion by 2011.
The military is looking to boost private companies' involvement with the repair and maintenance of military hardware, ranging from fighter planes to transportation vehicles to warships.
The move is aimed at saving money while helping the private sector develop defense-related capabilities.
The MND started moving in this direction in 1996 but did not achieve concrete results until this year.
In 1996, the ministry contracted out only NT$10 billion for the repair and maintenance of hardware, according to MND statistics.
But the figure has risen to more than NT$30 billion this year and is expected to be about the same next year.
The MND estimates that by 2011, the annual contracts awarded to the private sector could amount to 74 percent of the ministry's purchasing budget.
The MND outlined its vision for the next decade yesterday at an annual exhibition of military hardware that could be entrusted to the private sector for repair and maintenance. A total of 2,854 items are on display at the show.
The exhibition, held in Kao-hsiung's Tsoying military base, was attended by government leaders, including Premier Yu Shyi-kun and Minister of National Defense Tang Yao-ming (
This year's exhibition high-lights a number of costly high-tech items, such as parts of the cockpit of the French-made Mirage 2000-5 fighter jet, which were seldom if ever seen over the past few years at similar shows.
An air force official, who was at the site to brief visitors, said the air force is willing to let private companies join in the business of repairing and maintaining highly sensitive military items but it does not mean private companies be awarded contracts.
"Private companies interested in the business have to talk with the original foreign manufacturers about terms acceptable to both sides. It will not be an easy job, since foreign weaponry companies are not necessarily willing to cooperate with us, especially when it comes to sensitive technology," the official said.
Many of the high-tech items on display are worth tens of millions of NT dollars, while some exceed NT$300 million in value.
The German-made Pinguin underwater remote-controlled vehicle, which the navy bought more than 10 years ago along with four mine sweepers, is among these items.
Despite the MND's efforts to contract out maintenance work, doubts linger about the ability of private companies to work with sophisticated equipment such as the Pinguin.
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