Looking For A Rematch With Northrop Grumman On Refueling Planes

After successfully protesting the award of a contract for aerial refueling tankers based on an Airbus platform to Northrop Grumman, Boeing is proposing a tanker design using either its 767 or 777 airframes when bids are re-opened next week.

Boeing defense chief Jim Albaugh made the announcement at the Paris Air Show Monday.

Northrop Grumman won the contract in February of last year with a tanker based on the Airbus A330. Boeing successfully challenged the contract to the Government Accountability Office, and won the right to have a new RFP.  In setting aside the contract, GAO said the Air Force “made a number of significant errors” in its selection. It said The Air Force failed to assess bids in accordance with evaluation criteria and improperly credited Northrop for exceeding aerial-refueling parameters, according to a report in Bloomberg News.

Richard Aboulafia, vice president of Teal Group in Fairfax, Virginia, told Bloomberg "The 777 solves the technology and additional cargo capability questions, but it increases cost and it might be too much plane for the requirement. On the other hand, if there is a split between Boeing and the Airbus A330 platform the two planes complement each other nicely.”

In a news conference at the Paris Air Show, Northrop Grumman spokesman Randy Belote said he couldn't comment on Boeing's design, but feels confident his company will prevail. “KC-45, which is ready now, has the right combination of fuel carry and offload, range, multi-role capability and cost," he said.

Bloomberg reports that Boeing will re-designate it's design the KC-7A7 for the time being. As to a possible split contract, A Northrop Grumman spokesperson said the company would be willing to consider that option as long as each supplier provides at least 12 aircraft a year. A split order is being considered in Congress after being suggested by Secretary of Defense Robert Gates.

FMI: www.boeing.com, www.northropgrumman.com