DTN News: Boeing Statement On Release of US Air Force KC-X Tanker Final Request For Proposal

DTN News: Boeing Statement On Release of US Air Force KC-X Tanker Final Request For Proposal *Source: DTN News / Boeing (NSI News Source Info) ARLINGTON, Va., - February 25, 2010: The Boeing Company today received the final Request for Proposal (RFP) document for the U.S. Air Force KC-X Tanker competition, and released the following statement from Jean Chamberlin, vice president and general manager, Boeing USAF Tanker Program: "Boeing has begun the process of closely studying the details of the KC-X Tanker final RFP. Today's release of the final RFP is an important milestone for our Air Force customer. The U.S. Air Force (USAF) ran a procurement program to replace around 100 of their oldest KC-135E Stratotankers, i.e., initially excluding the more common updated KC-135R variant. EADS offered the A330 MRTT. The Boeing KC-767 was selected in 2002, but the USAF cancelled the KC-767 order when the deal became embroiled in a political controversy due to the nature of the lease agreement. In 2006, the USAF released a request for proposal (RFP) for a new tanker aircraft, to be selected by 2007, which was updated in January 2007, to the KC-X RFP, one of three acquisition programs that are intended to replace the entire KC-135 fleet. The Airbus A330 MRTT was proposed again by EADS and Northrop Grumman as the KC-30. It again competed against the Boeing KC-767, which is a smaller aircraft (holds about 20 percent less fuel), less cargo, but is also cheaper. The Air Force announced on February 29, 2008, that the KC-30 was chosen as the KC-135 replacement, and will be designated the KC-45A. On June 18, 2008, the United States Government Accountability Office sustained a protest by The Boeing Company on the award of the contract to Northrop Grumman and EADS. The status of the KC-45A is in doubt and the Air Force may have to rebid the contract, potentially reversing their earlier decision. On 10 September 2008, bidding was canceled. A new competition between the KC-45 and KC-767 (or possibly the KC-777, a Boeing 777 derivative which had been considered previously) will be opened sometime in 2009. Not only does it mean that the KC-X competition can proceed, it also is a strong signal that America is moving forward on replacing its air refueling capability -- a critical enabler for projecting power and protecting this nation. "We've said consistently that it is up to the Air Force to determine the KC-X requirements for a new generation of tankers. It's our responsibility to respond to those requirements. While we appreciated the open dialogue with the Air Force throughout this process, we are disappointed that the RFP does not address some of our key concerns, including Airbus' unfair competitive advantage derived from subsidies from its sponsor European governments -- subsidies that the World Trade Organization has found to be illegal and harmful to U.S. workers and industry -- and how fuel and military-construction costs over the life of the tankers will be factored into consideration of the competing bids. We will review the RFP in its entirety and in detail before offering further assessment."