Posted on 03/08/2010 8:39:45 PM PST by ErnstStavroBlofeld
Northrop Grumman, in partnership with EADS, will not offer a bid for the $35 billion KC-X tanker contract, citing a US Air Force request for proposal (RFP) it believes is weighted in favour of its competitor.
"We reached this conclusion based on the structure of the source selection methodology defined in the RFP, which clearly favours Boeing's smaller refuelling tanker and does not provide adequate value recognition of the added capability of a larger tanker, precluding us from any competitive opportunity," says Wes Bush, CEO of Northrop Grumman.
Additionally, Bush says that Northrop has decided not to protest the selection process, adding that "while we feel we have substantial grounds to support a [Government Accountabiity Office] 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".
EADS echoed a similar sentiment about the KC-X selection process, but declined to say whether or not the European defence consortium would make its own bid to the US Air Force. However, those close to the process say the European company is in a "wait and see" position on any future developments.
(Excerpt) Read more at flightglobal.com ...
well, hard to play against a stacked deck...
Northrop Grumman must have something else in the works that they don’t want to turn their attention and resources away from.
You're kidding, right?
Probably a shrewd move on the part of NG. They have a number of very lucrative pokers in the fire, and there is no need to bid on something that would be a sure loser for them.
But bad news for the South Eastern United States. Many American jobs were going to be created in the Southeast states. Under the original bid Northrop Grumman came the closest to all build requirements. They won the contract. Political games stopped the contract. The whole requirement was rewritten to totally favor Boeing’s aircraft. The is no way to compete against this amount of stacked deck and win. Northrop has made a good decision. Back out and let things fall where they will. So once again, our military will get an inferior product to appease politicians. Boeing is still way behind on the flyable boom required to meet the proposals. They have had an extra year to work on it. Don’t get me wrong Boeing is still a fine aerospace company, they make some fine aircraft. They stepped in it on this one though and our military and taxpayers and going to be screwed again. JMO!
One was that they wouldn't commit to stand-up a support center in 2 years and the other had to do with break away speed.
No, I’m not. They know they can’t win this contract, but their decision not to appeal it suggests they have other potentially lucrative projects that they are working and counting on.
Or in other words: “We can’t win this so we’re taking our toys and going home”
Bunch of crybabies!
You're kidding, right?
Boeing has been making flying booms for over 50 years. Except for KC-10s, all the world's flying booms are Boeing made. EADS/NG is the one having trouble with the boom and its performance throughout the mission envelope.
I think there are enough stand-up support centers for A330 in the world right now. Was that really a problem?
The break away speed would have also been a stopper for Boeing. Boeing only offered estimations for a yet to build aircraft. Both aircrafts are designed to fly at lower speeds than a 707 or a DC-10 due to fuel consumption. For the new Boeing KC-X speeds will be lowered.
No EADS KC-X Solo Bid, Says GalloisEADS will not mount a solo bid in the KC-X tanker program, the company's chief executive Louis Gallois says. Northrop Grumman's decision not to pursue the KC-X program, offering the Airbus A330-200, was not been well received in Europe. EADS officials were visibly upset at the turn of events when the new broke. For EADS, there has been a lot riding on the KC-X program. In addition to the significant dollar value, the company's ambitions to grow its footprint in the U.S. market has been integral to its long-term business plan. Both the size of the U.S. defense budget and the need to provide so called natural hedging against the euro-dollar imbalance have driven its American agenda.
EADS will still need to pursue that strategy, it just now needs to find a new route to success.
Gallois notes that "the US tanker decision does not diminish our commitment to the U.S."
Now, how about, if you can imagine it, that EADS clears the way for Boeing (an red blooded American company) to have the tanker contract. An then a bit latter this year we hear that the USAF is beginning to take a hard look at the A400M as it “now” fits their needs.
Say the USAF places an offer for 125 to 150 of these planes all of a sudden EADS has the A400M going from “rags to riches”. The added benefit is that if the US is buying it then it automatically becomes the plane for all the other countries AF’s.
Consider me cynical, but, watch the papers for coming events!
So, when the Air Force said the tanker needs to land on its runways, EADS said, “Nope, we’re going to build something that needs looooong commerical runways”, then bitches they can’t compete. Typical Euroweenies.
“Northrop Grumman must have something else in the works that they don’t want to turn their attention and resources away from.”
Like a certain satellite program they are billions of dollars and years behind on.
“But bad news for the South Eastern United States. Many American jobs were going to be created in the Southeast states.”
As though Boeing was going to go overseas to make their tanker? South Carolina and Georgia are two SE States that will find themselves with lots of work on the Boeing tanker. I am sure there are others, such as Alabama and Florida.
....hmmmm
No not at all. Clearly the fix is in. Their decision indicates that they don't want to put another $100 million down a rat hole, and I do mean a RAT hole, when the politics of the situation makes it impossible for them to win.
I see, so to avoid being a crybaby in your book you have to bend over and take it up the @ss? Sounds to me more like an idiot or a masochist than a crybaby.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.