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.

FMI: www.northropgrumman.com, www.dod.gov