Tue, Mar 08, 2011
Said Air Force Ran The Competition Within The Outlined
Rules
EADS North America announced late Friday that it will not
protest the U.S. Air Force's selection of the Boeing offering in
the competition to replace the service's aging fleet of KC-135
aerial refueling tankers. The company expressed appreciation to the
Air Force for running a competition consistent with the rules set
out in its Request for Proposal.
"While we are obviously disappointed that our men and women in
uniform are not getting the most capable tanker available, we will
not take any action that could further delay the already overdue
replacement of the Air Force's aging tanker fleet," said EADS North
America Chairman Ralph D. Crosby, Jr. "The bid that we submitted
was substantially lower than was submitted in the last competition.
Our bid reflected a sound business case and offered a reasonable
return to our shareholders."
"We're also proud that our involvement in the competition
resulted in very significant savings to taxpayers," Crosby
said.
EADS North America's analysis determined that the KC-X bid
submitted by The Boeing Company was nearly $16 billion less for 179
aircraft compared to its original tanker lease offer to the Air
Force in 2002, when normalized for escalation and differences in
aircraft quantities and requirements. Much is promised by our
competitor, whom we congratulate. However, should they fail to
deliver, we stand ready to step in with a proven and operating
tanker," said Crosby.
The U.S. Air Force also confirmed that the EADS North America
tanker was judged to be superior in capability to the Boeing
offering as measured by the service's fleet effectiveness rating.
"We've competed fiercely and demonstrated once again why we have
earned a reputation with the Department of Defense for quality,
dependability and professionalism," said EADS North America CEO
Sean O'Keefe. "Now our focus is on future opportunities and our
continued growth. This experience has strengthened our position in
the U.S. marketplace."
"We will continue our dialog with the Department of Defense to
strengthen our future competitiveness, while also applying relevant
lessons learned to the A330 Multi Role Tanker Transports slated for
delivery to four U.S. allies," O'Keefe said.
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