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Fri, Feb 09, 2007

Airbus, Northrop Grumman Back In The Bidding For KC-X

KC-30 To Compete Against Boeing's KC-767

In a release Thursday, Northrop Grumman says it will respond to the US Air Force's request for proposal (RFP) for a tanker aircraft to replace its aging fleet of KC-135 Stratotankers.

In its release Northrop's corporate vice president and president of integrated systems Scott Seymour said, "The next-generation tanker is vital to our nation's power projection capabilities around the world for decades to come. After carefully studying the final language in the Air Force's KC-X request for proposals, we and our team members have determined that the Northrop Grumman KC-30 is a very competitive offering that fully supports the Air Force's tanker mission."

This sets the stage for a showdown between the world's two largest commercial aircraft manufacturers in the competition for what could potentially be the largest military contract in US history -- up to $100 billion.

Northrop/Airbus will offer a variant of Airbus' A330 commercial airliner fitted with a refueling boom (above), and appropriately modified to haul more fuel. The consortium has dubbed it the KC-30.

Boeing plans to put forward a modified 767 it's calling the KC-767.

Boeing brings nearly 60 years experience in building, modifying and maintaining air refueling aircraft to the table, while Airbus is a relative newcomer. The UK and Australia have already contracted with Airbus for its KC-30, while Boeing has sold KC-767s to Italy and Japan.

Should Boeing win the contract it would breathe new life into its 767 line, and keep the production facility open for many years to come; should it lose, the line will likely shut down in the very near future.

Northrop and Airbus have selected a Mobile, AL facility to perform all the completion work on the A330 airframes coming from Europe. The Mobile plant would mean big money for the local economy bringing some 1,000 jobs.

As ANN reported, the Northrop-Airbus partnership had hinted it wouldn't submit a proposal if it felt the requirements listed in the RFP might tilt the playing field too far in Boeing's favor, leaving some to speculate the whole acquisition program might be in trouble if Boeing were left as the only offering.

Boeing's credibility as a military contractor took a big hit three years ago when a lease-back deal approved by the Pentagon came under congressional fire. The sordid scandal resulted in jail time for the military acquisition officer who approved the $23.5 billion deal (an inflated price) just before retiring and accepting a cush job with Boeing. Later fall out included a rash of firings and resignations of many top executives at the company.

The USAF took its share of knocks in the scandal as well. A Pentagon IG report filed months after the deal fell through noted the service "demonstrated neither best business practices nor prudent acquisition procedures to provide sufficient accountability for the expenditure of $23.5 billion."

This time around, the USAF says it has engaged in "extensive and transparent dialogue" between it and officials from the Office of the Secretary of Defense, Air Mobility Command, industry and members of Congress with every intention to minimize development risks among differing aircraft manufacturers and types.

Northrop's Seymour said, "We appreciate the Air Force acquisition authority's process transparency and invitation for industry dialogue which have resulted in this very comprehensive, capabilities-based final request for proposal. We look forward to submitting a proposal that will provide the Air Force with the best-value, next-generation tanker possible for our future warfighters."

So... the board is set, the pieces arranged, the playing field level and square -- let the battle begin!

FMI: www.northropgrumman.com, www.airbus.com, www.boeing.com, www.af.mil, www.pentagon.mil

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