|Object Name:||General Dynamics Plaque|
|Platform(s):||F-16C/D Fighting Falcon|
|Year of Manufacture:||1991|
|Location:||Awards Cupboard 1|
for outstanding support
of the F-16
Indirect Offset Program
Fort Worth Division
Military sales offsets come in two basic varieties. “Direct” offsets transfer military technology, typically by granting a license to the recipient country to produce a U.S. weapon system or its components or subcomponents. "Indirect” offsets—called that because they aren’t directly military-related—may involve counter-importing some random product into the arms-selling country, investing in the buying country, or transferring commercial technology.
The direct offsets that clinched the $5.2 billion Korean Fighter Program (KFP) deal of 1991 are increasingly typical. South Korea bought 12 off-the-shelf F-16C/D fighters from General Dynamics as well as 36 aircraft kits to be assembled in Korea. But South Korea wanted to produce an indigenous fighter aircraft, and it held out for the right to manufacture an additional 72 F-16s under license. On top of the transfer of manufacturing and assembly know-how, Korea received 30 percent of the contract value—more than $1.5 billion—in undisclosed indirect offsets.
General Dynamics (now Lockheed Martin) and the US Government engaged in many Offset arrangements in sales of the F-16 to a large number of countries (Greece, Israel, Turkey, South Korea….) Clearly GEC Avionics participated in the Indirect Offset programmes but the details are not known.