Force's refueling tanker contract.
"This is a big one. And it's a big one for both sides," said Paul Meyer, head of Los Angeles-based Northrop's tanker program. "We're ready to get to it."
Top Air Force officials said last week they hope to reopen bidding on the potential $40 billion contract soon after lawmakers return to Washington, D.C., from their summer recess. Congress is scheduled to reconvene Sept. 8.
The stakes could not be much higher. New tankers are the Air Force's top priority, and the contract ranks among the biggest ever awarded by the Pentagon. For Mobile, a win by Northrop and its bidding partner, the European Aeronautic Defence and Space Co., would bring construction of a $600 million, 1,500-worker aircraft production plant.
For Chicago-based Boeing, a win would secure thousands of aircraft assembly jobs in Washington state and Kansas, both hard-hit by the economic downturn. It also would keep the company's lock on the Air Force tanker business, a franchise it has held for nearly 50 years, and deal a blow to archrival Airbus.
Airbus, an EADS subsidiary, has announced plans to add assembly of commercial A330 freighters in Mobile, contingent on winning the tanker work. The facility would give Airbus a long-sought foothold on U.S. soil and establish a Southern center of aircraft production to rival Boeing's operations in the Pacific Northwest.
"This competition is a top priority for Boeing," said spokesman Bill Barksdale. "It's significant because we feel it is a long-term business for us, and we want to keep it."
Northrop and Boeing waged a fierce, politically charged contest for the contract last year. Northrop, offering a larger, more capable tanker based on an Airbus A330 jet, shocked observers by beating Boeing and its smaller KC-767, which had been heavily favored to win.
The contract for 179 planes was designed to be the first of three phases to replace the Air Force's aging fleet of more than 500 KC-135 Stratotankers, which average nearly 50 years in service and are becoming increasingly costly to operate.
The deal unraveled last fall after federal auditors, acting on a protest filed by Boeing, found problems with the way the Air Force conducted its evaluation. That led Defense Secretary Robert Gates to order a new competition beginning this year.
Since then, both the companies and the Air Force have been preparing for the rematch.
"A lot of people are working very hard on this to make sure that this is done perfectly right," said David Van Buren, the Air Force's top acquisition official. "Right now, we're in a period of reviewing all of the documentation and making sure that it meets everybody's expectations."
Van Buren said he anticipates that the Pentagon will release a draft version of its request for bids "after the Hill reconvenes after Labor Day."
Under that timeline, a final version of the bidding criteria would be issued by January, and a winner would be selected next summer. Gates and Air Force Secretary Michael Donley remain committed to a winner-take-all contest, even as a proposal to split the order continues to circulate through Congress.
"I think if (a dual buy) is structured in a way that saves costs, you could see support for it," said U.S. Rep. Artur Davis, D-Birmingham.
Davis added that a compromise may be the only way to break a political stalemate between the two rival teams. "Otherwise, we'll be right back in this mess two years from now. And we can't wait that long for a modern tanker."
Meyer, a former fighter pilot now known as Northrop's "Mr. Tanker," said he's eager to get back into the ring with Boeing.
"They didn't believe we were a serious contender in the first round. Now they know," he said. "I think they'll sharpen their offer, just as we will. We'll both play hard, and we'll both bring out the best we've got. And when you get that kind of vigorous competition, the Air Force should be the beneficiary."
Monday, August 31, 2009
DTN News: Northrop Grumman, Boeing Eager To Resume Tanker War ~ Northrop Grumman Win Could Mean 1,500 Jobs For Mobile
DTN News: Northrop Grumman, Boeing Eager To Resume Tanker War ~ Northrop Grumman Win Could Mean 1,500 Jobs For Mobile
*Source: DTN News / Int'l Media
(NSI News Source Info) LOS ANGELES, USA - August 31, 2009: With a new round of competition set to begin in the next couple of weeks, officials with Northrop Grumman Corp. and Boeing Co. said they're eager to resume their battle for the U.S. Air
Force's refueling tanker contract.
"This is a big one. And it's a big one for both sides," said Paul Meyer, head of Los Angeles-based Northrop's tanker program. "We're ready to get to it."
Top Air Force officials said last week they hope to reopen bidding on the potential $40 billion contract soon after lawmakers return to Washington, D.C., from their summer recess. Congress is scheduled to reconvene Sept. 8.
The stakes could not be much higher. New tankers are the Air Force's top priority, and the contract ranks among the biggest ever awarded by the Pentagon. For Mobile, a win by Northrop and its bidding partner, the European Aeronautic Defence and Space Co., would bring construction of a $600 million, 1,500-worker aircraft production plant.
For Chicago-based Boeing, a win would secure thousands of aircraft assembly jobs in Washington state and Kansas, both hard-hit by the economic downturn. It also would keep the company's lock on the Air Force tanker business, a franchise it has held for nearly 50 years, and deal a blow to archrival Airbus.
Airbus, an EADS subsidiary, has announced plans to add assembly of commercial A330 freighters in Mobile, contingent on winning the tanker work. The facility would give Airbus a long-sought foothold on U.S. soil and establish a Southern center of aircraft production to rival Boeing's operations in the Pacific Northwest.
"This competition is a top priority for Boeing," said spokesman Bill Barksdale. "It's significant because we feel it is a long-term business for us, and we want to keep it."
Northrop and Boeing waged a fierce, politically charged contest for the contract last year. Northrop, offering a larger, more capable tanker based on an Airbus A330 jet, shocked observers by beating Boeing and its smaller KC-767, which had been heavily favored to win.
The contract for 179 planes was designed to be the first of three phases to replace the Air Force's aging fleet of more than 500 KC-135 Stratotankers, which average nearly 50 years in service and are becoming increasingly costly to operate.
The deal unraveled last fall after federal auditors, acting on a protest filed by Boeing, found problems with the way the Air Force conducted its evaluation. That led Defense Secretary Robert Gates to order a new competition beginning this year.
Since then, both the companies and the Air Force have been preparing for the rematch.
"A lot of people are working very hard on this to make sure that this is done perfectly right," said David Van Buren, the Air Force's top acquisition official. "Right now, we're in a period of reviewing all of the documentation and making sure that it meets everybody's expectations."
Van Buren said he anticipates that the Pentagon will release a draft version of its request for bids "after the Hill reconvenes after Labor Day."
Under that timeline, a final version of the bidding criteria would be issued by January, and a winner would be selected next summer. Gates and Air Force Secretary Michael Donley remain committed to a winner-take-all contest, even as a proposal to split the order continues to circulate through Congress.
"I think if (a dual buy) is structured in a way that saves costs, you could see support for it," said U.S. Rep. Artur Davis, D-Birmingham.
Davis added that a compromise may be the only way to break a political stalemate between the two rival teams. "Otherwise, we'll be right back in this mess two years from now. And we can't wait that long for a modern tanker."
Meyer, a former fighter pilot now known as Northrop's "Mr. Tanker," said he's eager to get back into the ring with Boeing.
"They didn't believe we were a serious contender in the first round. Now they know," he said. "I think they'll sharpen their offer, just as we will. We'll both play hard, and we'll both bring out the best we've got. And when you get that kind of vigorous competition, the Air Force should be the beneficiary."
Force's refueling tanker contract.
"This is a big one. And it's a big one for both sides," said Paul Meyer, head of Los Angeles-based Northrop's tanker program. "We're ready to get to it."
Top Air Force officials said last week they hope to reopen bidding on the potential $40 billion contract soon after lawmakers return to Washington, D.C., from their summer recess. Congress is scheduled to reconvene Sept. 8.
The stakes could not be much higher. New tankers are the Air Force's top priority, and the contract ranks among the biggest ever awarded by the Pentagon. For Mobile, a win by Northrop and its bidding partner, the European Aeronautic Defence and Space Co., would bring construction of a $600 million, 1,500-worker aircraft production plant.
For Chicago-based Boeing, a win would secure thousands of aircraft assembly jobs in Washington state and Kansas, both hard-hit by the economic downturn. It also would keep the company's lock on the Air Force tanker business, a franchise it has held for nearly 50 years, and deal a blow to archrival Airbus.
Airbus, an EADS subsidiary, has announced plans to add assembly of commercial A330 freighters in Mobile, contingent on winning the tanker work. The facility would give Airbus a long-sought foothold on U.S. soil and establish a Southern center of aircraft production to rival Boeing's operations in the Pacific Northwest.
"This competition is a top priority for Boeing," said spokesman Bill Barksdale. "It's significant because we feel it is a long-term business for us, and we want to keep it."
Northrop and Boeing waged a fierce, politically charged contest for the contract last year. Northrop, offering a larger, more capable tanker based on an Airbus A330 jet, shocked observers by beating Boeing and its smaller KC-767, which had been heavily favored to win.
The contract for 179 planes was designed to be the first of three phases to replace the Air Force's aging fleet of more than 500 KC-135 Stratotankers, which average nearly 50 years in service and are becoming increasingly costly to operate.
The deal unraveled last fall after federal auditors, acting on a protest filed by Boeing, found problems with the way the Air Force conducted its evaluation. That led Defense Secretary Robert Gates to order a new competition beginning this year.
Since then, both the companies and the Air Force have been preparing for the rematch.
"A lot of people are working very hard on this to make sure that this is done perfectly right," said David Van Buren, the Air Force's top acquisition official. "Right now, we're in a period of reviewing all of the documentation and making sure that it meets everybody's expectations."
Van Buren said he anticipates that the Pentagon will release a draft version of its request for bids "after the Hill reconvenes after Labor Day."
Under that timeline, a final version of the bidding criteria would be issued by January, and a winner would be selected next summer. Gates and Air Force Secretary Michael Donley remain committed to a winner-take-all contest, even as a proposal to split the order continues to circulate through Congress.
"I think if (a dual buy) is structured in a way that saves costs, you could see support for it," said U.S. Rep. Artur Davis, D-Birmingham.
Davis added that a compromise may be the only way to break a political stalemate between the two rival teams. "Otherwise, we'll be right back in this mess two years from now. And we can't wait that long for a modern tanker."
Meyer, a former fighter pilot now known as Northrop's "Mr. Tanker," said he's eager to get back into the ring with Boeing.
"They didn't believe we were a serious contender in the first round. Now they know," he said. "I think they'll sharpen their offer, just as we will. We'll both play hard, and we'll both bring out the best we've got. And when you get that kind of vigorous competition, the Air Force should be the beneficiary."
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