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Sigaba
02-21-2010, 20:45
Two stories. The first is from the Air Force Times on-line edition. Source is here (http://www.airforcetimes.com/news/2010/02/airforce_tanker_bid_020910w/).Air Force sets release date for tanker RFP

By John Reed - Staff writer
Posted : Friday Feb 12, 2010 14:02:28 EST

After months of delays, the Air Force intends to release the final request for proposals on the $35 billion KC-X tanker competition “not earlier than” Feb. 23, according to an Air Force pre-solicitation notice released Monday.

The final RFP was originally due Nov. 30. However, on Dec. 1 Northrop President and CEO Wes Bush sent a letter to Pentagon acquisition chief Ashton Carter threatening to drop out of the competition unless changes were made to the draft RFP. Bush complained that the early, cost-focused version of the solicitation heavily favored rival Boeing’s smaller, cheaper 767-based offering over Northrop’s Airbus A330-based bid.

Both competitors have also complained about the fixed-price nature of the contract, which calls for tankers to be delivered over several decades.

Soon after Bush sent his letter, the Pentagon announced that it was delaying the release of the final RFP until January so it could take the time to address complaints from KC-X competitors Boeing and Northrop Grumman-EADS. Over the last several months, high-ranking Pentagon and Air Force officials have insisted that they will make no major changes to the RFP. Just last week, Defense Secretary Robert Gates confirmed that the Pentagon will move ahead with the competition with or without Northrop’s participation.The second article is from the on-line edition of the Los Angeles Times.Source is here (http://www.latimes.com/business/la-fi-tanker22-2010feb22,0,979697,print.story).New air tanker fleet is still pie in sky
The Pentagon's twice-aborted effort to award a $35-billion contract may be derailed again.

By W.J. Hennigan

4:54 PM PST, February 21, 2010

The multibillion-dollar competition to build aerial refueling tankers for the Air Force is expected to kick off this week as the Pentagon spells out its latest requirements to replace its aging fleet of Eisenhower-era aircraft.

But there are already signs that the competition could be derailed once again. Century City-based Northrop Grumman Corp., one of the two contenders, has threatened to withdraw its bid, accusing the Air Force of writing specifications that favor its rival, Boeing Co.

The latest specs for the tankers, which refuel warplanes in flight, are due out this week -- possibly as early as Tuesday. It would mark the third time that the Pentagon has tried to award one of the largest military contracts in U.S. history. It has been scrapped twice amid accusations of ethical breaches and technical mistakes.

Northrop, which is teamed with Airbus parent European Aeronautic Defense & Space Co., and some analysts contend that the odds are stacked against Northrop's bid for the contract, potentially worth about $35 billion.

That hasn't stopped the company from launching a major public relations campaign, with its senior executives traveling to states that stand to reap economic benefits if the Northrop-Airbus team wins. This month alone, Northrop officials have met with lawmakers in Ohio, Florida, Michigan and North Carolina.

"We're just advising people that there's an opportunity for thousands of jobs in their state if we win the competition," said Randy Belote, a Northrop spokesman. "That opportunity could be taken away if the final Request for Proposal does not undergo substantive changes."

Northrop officials maintain that the draft version of the so-called RFP, which outlines the specifications for the tanker and how contenders would be judged, call for a smaller aircraft with limited capabilities, the kind that its rival Boeing is expected to pitch.

Scott Hamilton, an aviation industry consultant in Issaquah, Wash., said Northrop won the previous competition in 2007 with a modified Airbus A330 because of the plane's ability to haul more fuel, cargo and troops and carry out more medical evacuations than Boeing's smaller 767-based tanker.

Northrop beat Boeing in a major upset after the Pentagon canceled the first contract that was awarded to Boeing amid an ethics scandal that led to a Boeing executive and a former Air Force official being sent to federal prison. The second contract with Northrop was voided after the Government Accountability Office found technical flaws with the RFP.

The current competition is centered on price, not "best-value," Hamilton said, pointing to a line in the Pentagon's Aircraft Investment Plan submitted in its fiscal 2011 budget that says that the tanker's capabilities of "airlift, communications support and aeromedical evacuations are secondary."

Lt. Gen. Mark Shackelford, military deputy responsible for Air Force acquisition, told reporters at a conference last week that the Pentagon can't force Northrop to compete, "nor are we willing to make a change in the process solely to their advantage."

Another option, analysts said, is a split-buy, in which each company would get to build 12 planes a year.

But that isn't likely because Defense Secretary Robert M. Gates has opposed such an arrangement, said James McAleese, a lawyer in McLean, Va., who specializes in military contracts. It would cost the government billions of dollars more than if the Pentagon chose one winner, he said.Does "so called RFP" indicate that Mr. Hennigan agrees with Northrop? Or is this story a part of Northrop's "major public relations campaign?" (What a surprise. Mr. Hennigan likes to tweet <<LINK (http://twitter.com/WJHenn)>>.:rolleyes:)

JJ_BPK
03-08-2010, 18:05
Boeing will get it's wish...

And they better be careful.

Their last bid was a plane that the AF through was 25-30 % less capable..

This time their price better be 25 30 % less than the NG WINNING bid..


Statement From Northrop Grumman on U.S. Air Force Aerial Refueling Tanker Program

WASHINGTON, D.C. - March 8, 2010 - The following is a statement from Wes Bush, Chief Executive Officer and President of Northrop Grumman Corporation (NYSE:NOC), concerning the U.S. Air Force aerial refueling tanker program.

"After a comprehensive analysis of the final RFP, Northrop Grumman has determined that it will not submit a bid to the Department of Defense for the KC-X program. We reached this conclusion based on the structure of the source selection methodology defined in the RFP, which clearly favors Boeing's smaller refueling tanker and does not provide adequate value recognition of the added capability of a larger tanker, precluding us from any competitive opportunity.

"Northrop Grumman fully respects the Department's responsibility to determine the military requirements for the new tanker. In the previous competition, Northrop Grumman was selected by the Air Force as offering the most capable tanker for the warfighter at the best value for the taxpayer. However, the Northrop Grumman and EADS team is very disappointed that the revised source selection methodology now dramatically favors Boeing's smaller refueling tanker. We agree that the fundamental military requirements for the new tanker have not changed since the last competition, but the Department's new evaluation methodology now clearly favors the smaller tanker.

"We continue to believe that Northrop Grumman's tanker represents the best value for the military and taxpayer – a belief supported by the selection of the A330 tanker design over the Boeing design in the last five consecutive tanker competitions around the globe. Regrettably, this means that the U.S. Air Force will be operating a less capable tanker than many of our Allies in this vital mission area.

"Our prior selection by the Air Force, our firm belief that we provide the best value offering, and the hard work and commitment of the many individuals and communities on our team over many years made this a difficult decision for our company. But we have a fiduciary responsibility to our shareholders to prudently invest our corporate resources, as do our more than 200 tanker team suppliers across the United States. Investing further resources to submit a bid would not be acting responsibly.

"We have decided that Northrop Grumman will not protest. While we feel we have substantial grounds to support a GAO or court ruling to overturn this revised source selection process, America's service men and women have been forced to wait too long for new tankers. We feel a deep responsibility to their safety and to their ability to fulfill the missions our nation calls upon them to perform. Taking actions that would further delay the introduction of this urgent capability would also not be acting responsibly.

"We recognize that our decision likely creates a sole-source outcome for Boeing. We call on the Department to keep in mind the economic conclusions of the prior round of bidding as it takes actions to protect the taxpayer when defining the sole-source procurement contract. In the previous round, the Air Force, through a rigorous assessment of our proposal, determined that it would pay a unit flyaway cost of approximately $184 million per tanker for the first 68 tankers, including the non-recurring development costs. With the Department's decision to procure a much smaller, less capable design, the taxpayer should certainly expect the bill to be much less."

Northrop Grumman Corporation is a leading global security company whose 120,000 employees provide innovative systems, products, and solutions in aerospace, electronics, information systems, shipbuilding and technical services to government and commercial customers worldwide.

http://www.irconnect.com/noc/press/pages/news_releases.html?d=186116




Good Luck Air Force.. Don't throw those KC-135's out just yet.. The KC-135 has faithfully served the AF sense 1957,, it must have at least another 20 years in it?? This will setup what must be the largest single-source bid ever for the DoD??

What's that old quote??

"We don't need no stinking bid process"