[비즈한국] The Special Operation Submachine Gun Type-1 project, which had been suspended for the past three years, is set to be resumed. SNT Motiv064960 and Dasan Machineries are competing for the contract, and it is expected that the 'lowest price' will be the key factor in determining the winner.
The Defense Acquisition Program Administration (DAPA) will conduct bid announcements and proposal evaluations for the Special Operation Submachine Gun Type-1 project from February to May of this year. Selection of the target equipment and purchase test evaluations will proceed from June, with the final model selection to be confirmed in December.
This project aims to replace the K-1A, which has been in use for over 40 years, with an improved submachine gun to ensure the capability to perform special operation missions. There are plans to invest a total of 65.483 billion KRW by 2027 to introduce 16,000 new submachine guns.
The military authorities decided on the Special Operation Submachine Gun Type-1 project as a mid-term requirement in November 2016 to provide superior individual firearms to special forces personnel. Following a competitive process, Dasan Machineries was selected as the preferred bidder in June 2020.
However, after a leak of military secrets by Dasan Machineries was discovered, DAPA suspended the project and cancelled the contract with the company at the end of 2021. As a result of the investigation, the leak was confirmed as fact, and those involved were convicted.
The investigation revealed that a former executive of Dasan Machineries had received money in exchange for leaking military secrets—such as Required Operational Capabilities (ROC) for machine guns and sniper rifles discussed or decided upon at Joint Chiefs of Staff meetings—to the company between 2015 and 2020. Consequently, DAPA imposed a 12-month ban on Dasan Machineries from participating in project bids.
From 2021 to 2024, Dasan Machineries faced a "penalty deduction" in proposal evaluations due to the military secret leak. In the defense industry, where victories are decided by decimals, this was a fatal handicap. However, the statute of limitations expired in 2024. Dasan Machineries has announced its intention to participate in the Type-1 submachine gun project.
SNT Motiv, a defense company specializing in firearms, is also expected to participate in this project. Having won the Special Operation Submachine Gun Type-2 project, SNT Motiv signed a supply contract with DAPA for the 5.56mm STC-16 special operation submachine gun in 2023 and began deliveries to the military in December of the same year. It is reported that the company has improved the maturity of the design through the trial and error of the Type-2 project.
An industry official pointed to "price" as the deciding factor for winning this contract. This is because DAPA's domestic procurement method selects the product with the lowest price among equipment that meets the military's required performance standards. Moreover, as this is a purchase project, there is no lower limit for the price bid.
The industry official explained, "The cost score accounts for 30% of the total score. If you bid 10% lower than your competitor, you get a 3-point lead. Since the performance of the rifles is expected to be virtually similar between the two companies, it is highly likely that the contract will eventually be won with the lowest price. For example, if you bid at zero, you would have a 99.99% chance of winning."