Friday’s the big day, it seems. An insider tells me the decision has been made, but that the memorandum is making its way around the Pentagon to get all the signatures it needs.
Our boy Steve Trimble reports that Northrop Grumman shares went up slightly today while Boeing shares went down (NorGrum is partnered with EADS/Airbus against Boeing). A stock trader buddy of mine (who has no inside knowledge on this contract award at all but it’s still a good point nonetheless) says “why do you think the entire military drives Chevy and Ford trucks?” That is to say, there ain’t no way a European company will win the bid.
I’m not so sure I agree…But we’ll keep you posted.
Tanker Announcement Expected Friday: U.S. Official
WASHINGTON, Feb 27 (Reuters) — The U.S. Air Force’s top weapons buyer said on Wednesday her best bet was that the winner of a potential $40 billion refueling aircraft contract would be announced after U.S. markets close on Friday.
“That’s my best bet for now,” Sue Payton, assistant secretary for acquisition, told Reuters after a hearing of the House of Representatives Armed Services Committee on the Air Force 2009 budget request.
Boeing Co. is vying for the contract against a team made up of Northrop Grumman Corp and Europe’s EADS.
“It’s absolutely not going to happen today,” Payton said. “We’re really making sure all the ‘i’s’ are dotted and ‘t’s’ are crossed.”
Air Force Secretary Michael Wynne earlier told Reuters he hoped an award would be announced “any day now,” once the Pentagon’s top weapons buyer, John Young, has signed off on he plan to buy 179 tankers, used to extend warplanes’ operating range.
“You don’t have a decision until all the paperwork is done and complete,” Wynne said during a break in testimony to the House panel.
The Air Force presented its acquisition plan on Monday to a top-level panel chaired by Young, the deputy undersecretary for acquisitions. (Reporting by Jim Wolf, editing by Mark Porter)
– Christian
{ 18 comments… read them below or add one }
If a European helicopter can win the Marine One competition, then nothing is impossible.
Since most Americans buy foreign built cars, tvs, ipods, ect why can’t the Pentagon just do what we do and buy the best product for the best price. I guess that makes too much sense….
Jack
This contract has a potential value of 100 billion dollars. It is almost certain that the bidder that is not selected when the award is announced will file a protest. It is a shame that this contract bid, which is critical to our national defense, has had the shadow of a scandal hanging over it.
Why in the hell is it that companies can protest contracts. All it does is draw out the time it takes to obtain these aircraft. And with the current state of the Air Forces tanker’s, they can’t afford any more lag time. Another thing too, these are freakin tankers were talking about.
Here’s what the air forces requirements should be for tankers.
1.) They can fly.
2.) Gas can actually be transfered from the tanker to the recieving air craft.
Oh yeah, and another thing, they must be built in
The United States of America.
Boeing has taken the American tax-payer for granted and things have gone way too far with military contractors ripping us off. If Northrop/EADS wins, it will send a message to Boeing that it must compete fairly and effectively, if they want any business.
Kevin, perhaps you should get some of your facts straight before posting such nonsense.
I think many are missing the point here. EADS / Airbus are partnered with Northrop Grumman……a US company!
If the consortium wins……and on paper they have the better aircraft…..then the majority of the work will be carried out in the US.
It’s time people stopped worrying about where various companies in a partnership originated and start demanding that the equipment purchased is the best bar none.
Wish Boeing would have put forth the KC-777 instead of the KC-767.
Fords and Chevys? I if he walks through the parking lot at work with his eyes shut. (I see plenty of European and Japanese makes in mine.) Not that it really has anything to do with the central point- I expect an Boeing buy as much as anyone else simply on these grounds. T’hell with EADS, anyway.
Despite being partnered with Northrop-Grumman, the KC-30 is still a European product. Toyota and Honda have car assembly plants in North America, but I think most people wouldn’t consider them American cars. Same thing with the KC-30 – the real value-added component(design and engineering) is done in Europe. Assembly jobs pay well, but without the design component, they don’t provide a long-lived economic benefit. That’s why truly domestic manufacturers are usually preferred. This is all irrespective of the quality of the product, of course.
The ability to lift LESS fuel over a SHORTER range is a WAR LOSING WEAPON that suggests the A330 will win.
The cancelation of the C5 engine upgrade program last week is also a good pointer – A330s carry a lot of freight!
Cargo capacity is fairly important for tankers. The Air Force uses tanker cargo capacity to enable units to self-deploy quickly: load ground equipment, spares, and personnel on board the tanker, and then use the tanker to refuel aircraft en-route. The KC-135 has relatively little cargo capacity, but the KC-10 has proven very useful.
I’m still trying to figure out if you want a few big tankers that can carry a lot of fuel but be in few places, or more smaller tankers that can be in more places. I wonder if its an issue to have more eggs in one basket with each larger aircraft?
If Boeing wins, I would expect them to immediately propose a 777, 787, or even 747-8 to replace the KC-10′s.
The problem with using foreign parts for the military is that the first time the Europeans disagree with our military politics try and get support for the aircraft they build!!!
> If Boeing wins, I would expect them to
> immediately propose a 777, 787, or even 747-8
> to replace the KC-10′s.
There are plans for future follow contracts called KC-Y and KC-Z. The KC-Y will replace the KC-10 and the KC-Z will replace the rest of the 135′s.
It’s EADS. -Frank
For Lu: Marine One should be a VIP Osprey.
And the a330 is flying corrosion trap junkpile.
Northrup has done well with dusting off old designs – they did the same with the B-2, didn’t they?