Stresses KC-45A Is Ready For Deliveries; Boeing Isn't

Still reeling from last week's surprise decision by the Government Accountability Office to recommend the US Air Force take yet another look at it's bidding process for a new aerial tanker, original contract winner Northrop Grumman Corporation urged a speedy resolution of the issue... and noted, for the moment anyway, the company is still holder of the contract.

"We respect the GAO process and are confident the Air Force will appropriately address its recommendations," said Paul Meyer, Northrop Grumman vice president of Air Mobility Systems and KC-45 program manager. "However, the GAO report does not change the fact that a new fleet of tankers is needed now, and Northrop Grumman is ready now," said Meyer. "Northrop Grumman remains under contract and remains ready to serve with the most modern, most capable tanker in the world."

As ANN reported June 18, the GAO sustained a protest by Boeing -- which lost the original February 29 contract award -- that challenged the Air Force’s technical and cost evaluations, conduct of discussions, and source selection decision.

"Our review of the record led us to conclude that the Air Force had made a number of significant errors that could have affected the outcome of what was a close competition between Boeing and Northrop Grumman," said GAO official Michael Golden. "We therefore sustained Boeing’s protest."

Prior to the GAO ruling, the Air Force conceded its math was flawed in initially determining Boeing's KC-767 would cost more to operate over its expected lifespan than the KC-45A. The USAF's initial determination was heavily promoted by Northrop... but following a review by Boeing, the service conceded it got its own math wrong in five different places.

Instead of costing as much as $34 million more to maintain over its service life than the KC-45A, as the Air Force originally said... it turns out the KC-767 will cost slightly less. Boeing proponents say that proves the KC-767 is the best option for the increasingly cost-conscious USAF.

But cost isn't everything, Northrop retorts. The KC-767 may, in fact, cost less... that is, if it ever makes it into serial production. Though in development for close to 10 years, the first KC-767 was only delivered in February. Boeing is currently working to fulfill orders from Japan and Italy, with any planes awarded under KC-X likely to be years away.

In contrast, Northrop says, its Airbus A330-based tanker is ready to go into production now... a significant factor, as the Air Force looks to replace its geriatric fleet of Eisenhower-era KC-135s.

"Northrop Grumman is the only company in this competition that has built, tested and flown its tanker aircraft," said Meyer. "We're also the only company that has a refueling boom that has been built and that has successfully passed fuel dozens of times to combat aircraft."

"The Air Force needs a new tanker, and nothing in the GAO report refutes the fact that the Northrop Grumman KC-45 is the most capable tanker and is ready now to go into production," he added.

The GAO's decision is non-binding; the US Air Force may still opt to push ahead with the KC-X decision, though the service will likely use much of its allotted 60-day consideration period to mull over the decision.

FMI: www.northropgrumman.com/