Wed, Dec 02, 2009
Companies Say Current RFP Is Not Acceptable
Northrop Grumman has sent a letter
to the Department of Defense saying they intend to pull out of the
KC-X tanker competition because the DoD has not substantially
changed the Request for Proposals (RFP) on the project.
In the letter to Ashton Carter, Undersecretary of Defense for
Acquisition, Technology, and Logistics dated December 1st, Northrop
Grumman President and CEO Wes Bush said "The KC-X contracting
office recently notified Northrop Grumman that the Department does
not plan to issue a second draft RFP. Further, the Department's
responses to date to our submitted questions suggest the Department
is not planning to substantially address our concerns in the final
release of the RFP. As a result, I must regrettably inform you
that, absent a responsive set of changes in the final RFP, Northrop
Grumman has determined it cannot submit a bid to the Department for
the KC-X program."
Bush left open the possibility
that Northrop Grumman and Airbus would re-enter the competition,
saying in the letter "It is my hope that the Department will elect
to modify it's approach to the procurement in a way that would
enable us to offer our product for your consideration."
The international news service AFP reports that Pentagon
Spokesman Bryan Witman said in a statement that "The Department
regrets that Northrop Grumman and Airbus have taken themselves out
of the tanker competition and hope they will return when the final
RFP is issued. The Department has played this right down the
middle and will continue to do so," Whitman said.
Northrop Grumman and EADS were proposing a tanker based on the
A330 airframe. They accused the Pentagon of disclosing proprietary
price details from the previous round, in which they were awarded
the contract, to Boeing. The Pentagon has denied those
accusations.
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