Northrup Grumman/EADS win USAF tanker bid
Ecce Homo! Loquitur...
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Northrup Grumman/EADS win USAF tanker bid
Decision expected to be announced in the next 24 hours....
NO WORD ON TANKER WINNER
Mobile will have to wait at least one more day to learn its fate in the U.S. Air Force's aerial refueling tanker competition.
The Air Force made no announcement Tuesday in the contest for one of the biggest and most hotly contested defense deals in years. A Pentagon executive board met Monday to review the Air Force's selection process for the proposed $40 billion, 179-plane tanker contract.
The contest pits Boeing Co. and its KC-767 tanker against a rival team by led Northrop Grumman Corp. and EADS North America, which together are proposing to assemble their KC-30 tankers in a new factory at Mobile's Brookley Field Industrial Complex. Observers have widely predicted the contract is Boeing's to lose. The Chicago-based company built the Air Force's existing fleet of KC-135 tankers and has a powerful team of politicians supporting its bid in Congress.
Northrop's KC-30 assembly plant would create up to 1,500 direct jobs in Mobile paying an average wage of about $1,250 a week. Another 300 jobs would be added by Airbus, which has announced plans to shift production of commercial air freighters to Brookley contingent on winning the tanker contract. The KC-30 tanker is based on a French-made Airbus A330 jet.
Defense analysts said the secrecy surrounding the Air Force's decision was unusual, given the size of the contract and the fact that leaking such details is a political sport in Washington, D.C.
Monday's meeting of the Defense Acquisition Board, which signs off on major weapons buys, was one of the final steps toward a decision. The Air Force is waiting for John Young, the Under Secretary of Defense for Acquisition, to sign a memorandum authorizing the service to move ahead with an award. A Pentagon spokeswoman said the memorandum had not been issued as of late Tuesday but gave no further details. Once the document is signed, the Air Force is expected to brief key Congressional leaders and the companies before publicly disclosing its choice.
The announcement could be made as early as today, but not before U.S. financial markets close at 4 p.m., according to the Pentagon. Defense analyst Loren Thompson, who has followed the competition closely, said there was a 60 percent chance the award could be made today.
Lt. Col. Jennifer Cassidy, an Air Force spokeswoman, said the service was at pains to prevent a news leak. "We're very conscious of the stakes, so we're keeping this as 'close hold' as we can so as not to jeopardize the process," she said.
Congress killed an earlier $23.5 billion Air Force plan to lease 100 Boeing 767 tankers amid a procurement scandal that sent two former Boeing officials to prison and prompted the resignation of two senior Air Force officials.
The Air Force has sought to keep the current competition as transparent and scandal-free as possible, meeting repeatedly with the rival bidders to explain the strengths and weaknesses of their respective proposals. But defense officials still expect the losing side to protest the award, given its sheer size and a spate of recent decisions faulting the Air Force on other arms programs.
Reuters reported that EADS had already raised "substantial concerns" about the tanker acquisition process and changes in how the KC-30 was being evaluated, citing sources briefed on the discussions. Northrop and EADS declined to comment on the report.
Air Force Secretary Michael Wynne and Air Force Chief of Staff Gen. Michael Moseley are scheduled to testify about the Air Force budget today before the House Armed Services Committee. They will testify regardless of whether the tanker contract has been awarded, said spokeswoman Lt. Col. Brenda Campbell. "That's not going to change," she said.
NO WORD ON TANKER WINNER
Mobile will have to wait at least one more day to learn its fate in the U.S. Air Force's aerial refueling tanker competition.
The Air Force made no announcement Tuesday in the contest for one of the biggest and most hotly contested defense deals in years. A Pentagon executive board met Monday to review the Air Force's selection process for the proposed $40 billion, 179-plane tanker contract.
The contest pits Boeing Co. and its KC-767 tanker against a rival team by led Northrop Grumman Corp. and EADS North America, which together are proposing to assemble their KC-30 tankers in a new factory at Mobile's Brookley Field Industrial Complex. Observers have widely predicted the contract is Boeing's to lose. The Chicago-based company built the Air Force's existing fleet of KC-135 tankers and has a powerful team of politicians supporting its bid in Congress.
Northrop's KC-30 assembly plant would create up to 1,500 direct jobs in Mobile paying an average wage of about $1,250 a week. Another 300 jobs would be added by Airbus, which has announced plans to shift production of commercial air freighters to Brookley contingent on winning the tanker contract. The KC-30 tanker is based on a French-made Airbus A330 jet.
Defense analysts said the secrecy surrounding the Air Force's decision was unusual, given the size of the contract and the fact that leaking such details is a political sport in Washington, D.C.
Monday's meeting of the Defense Acquisition Board, which signs off on major weapons buys, was one of the final steps toward a decision. The Air Force is waiting for John Young, the Under Secretary of Defense for Acquisition, to sign a memorandum authorizing the service to move ahead with an award. A Pentagon spokeswoman said the memorandum had not been issued as of late Tuesday but gave no further details. Once the document is signed, the Air Force is expected to brief key Congressional leaders and the companies before publicly disclosing its choice.
The announcement could be made as early as today, but not before U.S. financial markets close at 4 p.m., according to the Pentagon. Defense analyst Loren Thompson, who has followed the competition closely, said there was a 60 percent chance the award could be made today.
Lt. Col. Jennifer Cassidy, an Air Force spokeswoman, said the service was at pains to prevent a news leak. "We're very conscious of the stakes, so we're keeping this as 'close hold' as we can so as not to jeopardize the process," she said.
Congress killed an earlier $23.5 billion Air Force plan to lease 100 Boeing 767 tankers amid a procurement scandal that sent two former Boeing officials to prison and prompted the resignation of two senior Air Force officials.
The Air Force has sought to keep the current competition as transparent and scandal-free as possible, meeting repeatedly with the rival bidders to explain the strengths and weaknesses of their respective proposals. But defense officials still expect the losing side to protest the award, given its sheer size and a spate of recent decisions faulting the Air Force on other arms programs.
Reuters reported that EADS had already raised "substantial concerns" about the tanker acquisition process and changes in how the KC-30 was being evaluated, citing sources briefed on the discussions. Northrop and EADS declined to comment on the report.
Air Force Secretary Michael Wynne and Air Force Chief of Staff Gen. Michael Moseley are scheduled to testify about the Air Force budget today before the House Armed Services Committee. They will testify regardless of whether the tanker contract has been awarded, said spokeswoman Lt. Col. Brenda Campbell. "That's not going to change," she said.
Ecce Homo! Loquitur...
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This is starting to get interesting....
The decision was made on Monday and the announcement set for after the market closed on Wednesday to allow the members of congress to brief their states and let them know the decision first.
The announcement has now been slipped till Friday when the market is shut for the weekend and, after meeting the state's congressional delegation, Washington's state governor has just said this at a press conference....
AeroNews: Washington Guv Raises Possibility Of Legal Action If KC-X Doesn't Go To Boeing
At this writing, Boeing hasn't lost the US Air Force's KC-X contract to provide the service with new tankers just yet -- and many analysts feel a Boeing win over a team comprised of EADS and Northrop Grumman is all-but assured. But that didn't stop the governor of Washington from threatening a possible legal protest if Boeing is denied the contract.
Speaking to reporters Tuesday after a meeting with the state's congressional delegation, Gov. Chris Gregoire said the state could file a congressional inquiry or take another course of action if Boeing isn't awarded the KC-X deal.
A decision from the Air Force was originally said to be coming as soon as Wednesday evening... though officials said Wednesday afternoon not to expect an annoucement until Friday, at the earliest.
Gregoire then stressed she still believes Boeing will come out on top, reports The Seattle Post-Intelligencer. "I'm banking on us getting it," she said. "I just think we win if it's done absolutely without politics, based on experience, work force, all of that. So I'm feeling good about this.
"If we don't win, then I think there'll be a lot of questions asked about why in the world would Boeing, with that work force, that expertise, that experience, that history -- how could they not have gotten this?" Gregoire then added, muddying the waters somewhat. "My sense is there'll be a lot of questions raised and then we'll get into the protest.".........
The decision was made on Monday and the announcement set for after the market closed on Wednesday to allow the members of congress to brief their states and let them know the decision first.
The announcement has now been slipped till Friday when the market is shut for the weekend and, after meeting the state's congressional delegation, Washington's state governor has just said this at a press conference....
AeroNews: Washington Guv Raises Possibility Of Legal Action If KC-X Doesn't Go To Boeing
At this writing, Boeing hasn't lost the US Air Force's KC-X contract to provide the service with new tankers just yet -- and many analysts feel a Boeing win over a team comprised of EADS and Northrop Grumman is all-but assured. But that didn't stop the governor of Washington from threatening a possible legal protest if Boeing is denied the contract.
Speaking to reporters Tuesday after a meeting with the state's congressional delegation, Gov. Chris Gregoire said the state could file a congressional inquiry or take another course of action if Boeing isn't awarded the KC-X deal.
A decision from the Air Force was originally said to be coming as soon as Wednesday evening... though officials said Wednesday afternoon not to expect an annoucement until Friday, at the earliest.
Gregoire then stressed she still believes Boeing will come out on top, reports The Seattle Post-Intelligencer. "I'm banking on us getting it," she said. "I just think we win if it's done absolutely without politics, based on experience, work force, all of that. So I'm feeling good about this.
"If we don't win, then I think there'll be a lot of questions asked about why in the world would Boeing, with that work force, that expertise, that experience, that history -- how could they not have gotten this?" Gregoire then added, muddying the waters somewhat. "My sense is there'll be a lot of questions raised and then we'll get into the protest.".........
Elsewhere it's reported:
"Led by Republican Sen. John McCain, Congress in 2004 banned the Air Force from working a lease and purchase deal with Boeing after a federal investigation uncovered improprieties in the highest levels of the Air Force procurement process.
Critics also complained Boeing was awarded the contract without competition and that the deal was a bailout for the 767 program, which was facing slumping sales.
Congress forced the Air Force to start a new bidding plan that would allow Boeing rival Airbus to compete for the contract.
Pentagon officials said the losing company could protest and ask the General Accountability Office to investigate the decision, which would delay the program again."
Presumably that means whichever losing company could protest? Or was that a slip by both the Pentagon and Gregoire, implying that Boeing know that their Frankentanker has already lost?
"Led by Republican Sen. John McCain, Congress in 2004 banned the Air Force from working a lease and purchase deal with Boeing after a federal investigation uncovered improprieties in the highest levels of the Air Force procurement process.
Critics also complained Boeing was awarded the contract without competition and that the deal was a bailout for the 767 program, which was facing slumping sales.
Congress forced the Air Force to start a new bidding plan that would allow Boeing rival Airbus to compete for the contract.
Pentagon officials said the losing company could protest and ask the General Accountability Office to investigate the decision, which would delay the program again."
Presumably that means whichever losing company could protest? Or was that a slip by both the Pentagon and Gregoire, implying that Boeing know that their Frankentanker has already lost?
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Legacy industrial area vs new southern industries
Democratic northwest vs Republican south
Could get very ugly. The CSAR helicopter program has been held up protests for long time wouldn't be a surprised to see the same.
Democratic northwest vs Republican south
Could get very ugly. The CSAR helicopter program has been held up protests for long time wouldn't be a surprised to see the same.
The Congressional mandate after the original Boeing lease fell apart (a plan concocted by Congress, mind you, as a bail-out for Boeing post 9/11) was simple.
Conduct a free, fair and open competition. Which Boeing wins.
Tankers are not a core business for Northrop Grumman. UAVs are, and I'm calling NG to win BAMS next week and to see a big boost in Fire Scout in the next year or so. NG already has the classified demonstrator for the Next Generation Bomber.
Lockheed Martin, which has a huge plant in Marietta that's starting to look very empty, did not even bother to bid, and the last thing that the US needs is another large-airplane assembly line.
Because McCain got mediaeval on Boeing's rear end over the original lease, too, O-whama-bama would find some way to nail him with the USAF BUYS SURRENDER-MONKEY TANKER JET meme.
I will be utterly smobgacked if this is anything but an all-767 award.
Conduct a free, fair and open competition. Which Boeing wins.
Tankers are not a core business for Northrop Grumman. UAVs are, and I'm calling NG to win BAMS next week and to see a big boost in Fire Scout in the next year or so. NG already has the classified demonstrator for the Next Generation Bomber.
Lockheed Martin, which has a huge plant in Marietta that's starting to look very empty, did not even bother to bid, and the last thing that the US needs is another large-airplane assembly line.
Because McCain got mediaeval on Boeing's rear end over the original lease, too, O-whama-bama would find some way to nail him with the USAF BUYS SURRENDER-MONKEY TANKER JET meme.
I will be utterly smobgacked if this is anything but an all-767 award.
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IMHO, although there are 5(?) criteria under review, it will come down to this:
If it's capability-based, it's the KC-30
If it's politics-based, it's the KC-767
If it's time (for all of them)-into-service based, it's both.
If it's capability-based, it's the KC-30
If it's politics-based, it's the KC-767
If it's time (for all of them)-into-service based, it's both.
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KC-X Award on 2/29/2008
Yes, it appears that politics probably played a role in the DAB decision for the winner- Boeing or NGC/EADS. With so many jobs at stake in the different constituent states, it's tough for the DOD and USAF to stay un-biased in this winner-take-all competition.
Next week, March 5 the DAB meets on BAMS- another competition decision. Interesting to me since my employer is NGC.
Next week, March 5 the DAB meets on BAMS- another competition decision. Interesting to me since my employer is NGC.
I understand that the result will be made known after the US stock markets close today, Friday 29 February.
Elsewhere, it was reported yesterday that:
Northrop Grumman stock was trading up 2.49%.
Boeing stock was trading down 0.49%.
Interestingly, the Malaysia Sun has already reported:
EADS is the winner of a US$40 billion military aircraft contract to supply refuelling aircraft to the airforce.
EADS will supply the USAF with a modified A330 with a larger capacity than the Boeing 767-200 plane which was on offer.
However, I'd take their report with a pinch of salt!
Elsewhere, it was reported yesterday that:
Northrop Grumman stock was trading up 2.49%.
Boeing stock was trading down 0.49%.
Interestingly, the Malaysia Sun has already reported:
US Air Force makes a deal with foreign supplier
Malaysia Sun
Tuesday 26th February, 2008
The U.S. Air Force has made an agreement with EADS, the European aircraft manufacturer, which has been vying against Chicago-based Boeing for the large military contract. Malaysia Sun
Tuesday 26th February, 2008
EADS is the winner of a US$40 billion military aircraft contract to supply refuelling aircraft to the airforce.
EADS will supply the USAF with a modified A330 with a larger capacity than the Boeing 767-200 plane which was on offer.
However, I'd take their report with a pinch of salt!
Last edited by BEagle; 29th Feb 2008 at 07:19.
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Indeed announcement due!
We'll learn of the outcome in about three hours time...
"PRESS RELEASE -- Secretary of the Air Force, Office of Public Affairs
Release No. 030208
February 29,2008
Tanker Contract Award Announcement
WASHINGTON - Secretary of the Air Force, Michael W. Wynne, and Vice Chief of Staff of the Air Force, Gen. Duncan J. McNabb, will announce the KC-X contract award winner in the OSD Press Briefing room 2E579 at 5 p.m. today at the Pentagon. A question and answer session with Ms. Sue C. Payton, Assistant Secretary, Acquisition, and General Arthur J. Lichte, Commander, Air Mobility Command, will follow the announcement."
"PRESS RELEASE -- Secretary of the Air Force, Office of Public Affairs
Release No. 030208
February 29,2008
Tanker Contract Award Announcement
WASHINGTON - Secretary of the Air Force, Michael W. Wynne, and Vice Chief of Staff of the Air Force, Gen. Duncan J. McNabb, will announce the KC-X contract award winner in the OSD Press Briefing room 2E579 at 5 p.m. today at the Pentagon. A question and answer session with Ms. Sue C. Payton, Assistant Secretary, Acquisition, and General Arthur J. Lichte, Commander, Air Mobility Command, will follow the announcement."
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Its the KC30
Just heard on Bloomsburg that the Northrop Grumman/EADS consortium has won the contract to deliver KC 30 to the USAF -as an avid Airbus fan I can only say - yippee
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Northrop/EADS Tanker win!!!
Northrop Wins Tanker Contract,
Beating Out Rival Boeing
Source:- http://online.wsj.com/article/SB1204...googlenews_wsj
Blimey!
Beating Out Rival Boeing
Source:- http://online.wsj.com/article/SB1204...googlenews_wsj
Northrop Grumman Corp. and European Aeronautic Defence & Space Co. broke Boeing Co.'s lock on the market for aerial refueling tankers, winning a $40-billion contract to turn Airbus jets into flying gas stations for U.S. military aircraft, according to a person familiar with the situation.
The unexpected win will likely bolster Los Angeles-based Northrop's standing as a major contender for large programs, while also expanding EADS's foothold in the U.S. defense market.
The Air Force's decision to choose the Northrop-led team is a major setback for Boeing, particularly after Boeing lost out on a $23-billion chance to be the sole supplier of tankers in 2001 after the discovery that a top Boeing official and a former Air Force acquisition official had conducted illegal job negotiations.
Under the contract, the Northrop-led team will build up to 179 tankers based on the Airbus A330 jetliner. The first planes are expected to enter service in 2013, replacing the Air Force's aging fleet of KC-135 tankers, many of which have been in service for more than 40 years. Eventually, the government expects to spend billions more dollars to replace more than 500 tankers.
Given the huge financial stakes and the politics at stake, few in the defense industry expect the decision will stand without protest. Over the last couple of years, protests on high-dollar contracts have been filed with increasing regularity, leading to delays as government officials review every aspect of the deals.
Lockheed Martin Corp. and United Technologies Corp.'s Sikorsky helicopter twice protested the Air Force's November 2006 decision to award Boeing a more than $10-billion contract to build search-and-rescue helicopters. After the Government Accountability Office sustained the protests, the Air Force in October 2007 asked for new bids and a winner is expected this summer.
The unexpected win will likely bolster Los Angeles-based Northrop's standing as a major contender for large programs, while also expanding EADS's foothold in the U.S. defense market.
The Air Force's decision to choose the Northrop-led team is a major setback for Boeing, particularly after Boeing lost out on a $23-billion chance to be the sole supplier of tankers in 2001 after the discovery that a top Boeing official and a former Air Force acquisition official had conducted illegal job negotiations.
Under the contract, the Northrop-led team will build up to 179 tankers based on the Airbus A330 jetliner. The first planes are expected to enter service in 2013, replacing the Air Force's aging fleet of KC-135 tankers, many of which have been in service for more than 40 years. Eventually, the government expects to spend billions more dollars to replace more than 500 tankers.
Given the huge financial stakes and the politics at stake, few in the defense industry expect the decision will stand without protest. Over the last couple of years, protests on high-dollar contracts have been filed with increasing regularity, leading to delays as government officials review every aspect of the deals.
Lockheed Martin Corp. and United Technologies Corp.'s Sikorsky helicopter twice protested the Air Force's November 2006 decision to award Boeing a more than $10-billion contract to build search-and-rescue helicopters. After the Government Accountability Office sustained the protests, the Air Force in October 2007 asked for new bids and a winner is expected this summer.
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KC 30 Announcement
I got there first at 2126 - see KC-X thread - but great news - no doubt there will be cries of FOUL from Boeing and Senate/House lobbying - but great news 179 wing sets for UK manufacture- I wonder what engines are being bid PW/GE/RR ????
Yes, just announced officially that the Airbus/Northrop-Grumman A330-based proposal has won the USAF KC-45A tanker contest.
A good day!
A good day!
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KC-X NGC/EADS Win
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Northrop Grumman/EADS Win USAF Tanker Award
Feb 29, 2008
By Amy Butler
Northrop Grumman and EADS have won the U.S. Air Force's KC-X tanker award, beating a Boeing-led team for the long-awaited, controversial and delayed decision.
The award, for total buy of 179 tankers, is expected to result in a deal worth tens of billions of dollars and leading to a dozen or more new aircraft for several at a cost of about $3 billion per year.
KC-X is the first iteration of a three-phased approach to replace the Air Force's fleet of 530 KC-135E/Rs and 59 KC-10s. The next tranche to replace the Air Force's larger KC-10 tankers, dubbed KC-Y, is not expected until at least 2020, effectively freezing Boeing out of the tanker market for the foreseeable future.
The decision also seals the fate for Boeing's 767 production line. The far newer A330 design continues to outpace the 767 in commercial orders. Boeing has about four years of work left for its Everett, Wash., production line without more orders. The company was looking to the U.S. Air Force to be the only and final 767 customer in the coming years.
The Northrop/EADS win also indicates the team's controversial tactics proved effective. The team threatened just over a year ago not to submit a proposal, effectively leaving the Air Force is a political quagmire without a true horserace after the former lease arrangement fell apart.
Sole-sourcing the deal to Boeing was not an option after two former executives of the company -- including the former top Air Force official that helped to craft the $30 billion lease while working for the government -- were found guilty of conducting illegal job negotiations. They both wound up serving jail sentences, and the scandal prompted Sen. John McCain (R-Ariz.), the current ranking Republican on the Senate Armed Services Committee, and former SASC Chairman John Warner (Va.) to push for a competition to reduce the price and improve the design.
Photo: EADS
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Print Article Email Article Save Article Make a Comment Northrop Grumman/EADS Win USAF Tanker Award
Feb 29, 2008
By Amy ButlerNorthrop Grumman and EADS have won the U.S. Air Force's KC-X tanker award, beating a Boeing-led team for the long-awaited, controversial and delayed decision.
The award, for total buy of 179 tankers, is expected to result in a deal worth tens of billions of dollars and leading to a dozen or more new aircraft for several at a cost of about $3 billion per year.
KC-X is the first iteration of a three-phased approach to replace the Air Force's fleet of 530 KC-135E/Rs and 59 KC-10s. The next tranche to replace the Air Force's larger KC-10 tankers, dubbed KC-Y, is not expected until at least 2020, effectively freezing Boeing out of the tanker market for the foreseeable future.
The decision also seals the fate for Boeing's 767 production line. The far newer A330 design continues to outpace the 767 in commercial orders. Boeing has about four years of work left for its Everett, Wash., production line without more orders. The company was looking to the U.S. Air Force to be the only and final 767 customer in the coming years.
The Northrop/EADS win also indicates the team's controversial tactics proved effective. The team threatened just over a year ago not to submit a proposal, effectively leaving the Air Force is a political quagmire without a true horserace after the former lease arrangement fell apart.
Sole-sourcing the deal to Boeing was not an option after two former executives of the company -- including the former top Air Force official that helped to craft the $30 billion lease while working for the government -- were found guilty of conducting illegal job negotiations. They both wound up serving jail sentences, and the scandal prompted Sen. John McCain (R-Ariz.), the current ranking Republican on the Senate Armed Services Committee, and former SASC Chairman John Warner (Va.) to push for a competition to reduce the price and improve the design.
Photo: EADS
