AW&ST - 11 Aug 2008: Boeing Leaning Toward Not Re-bidding KC-X
Word that Boeing is strongly considering a “no bid” position for the next round of the U.S. Air Force refueling tanker competition is spreading only two days after the Pentagon released the revised KC-X draft request for proposals (RFP).
Multiple sources familiar with Boeing’s internal discussions say company officials are strongly considering the option of not submitting a proposal as the company’s Integrated Defense Systems sector tries to respond to the draft RFP within the government’s speedy timeline. Comments are due this week.
The move would leave the Defense Dept. without a competition for the KC-135 tanker replacement. A demand from Congress for a competition after the botched attempt to sole-source the work to Boeing in 2003 was what drove the KC-X competition and eventually led to the selection of the Northrop Grumman/EADS Airbus A330-200-based design in February. However, the Government Accountability Office found errors in the scoring of the bids during the last round and directed the government to amend its RFP.
After Northrop Grumman threatened a no-bid position in the last round, the Pentagon added items to the RFP that would take into account the attributes of its A330-200-based design, which was submitted jointly with EADS.
Now, however, the Pentagon is pushing for the replacement tankers as soon as possible after multiple delays. It remains unclear if a no-bid position from Boeing would drag out the KC-X competition or it if would compel the Pentagon to attempt a sole-source of the work to Northrop Grumman/EADS.