EADS Blinks, Says It MAY Want To Bid, Is "Assessing The Situation"

The Pentagon said Thursday that it had received a communication from EADS indicating that the company might reconsider its decision to not bid on a $35 billion dollar contract to replace the Air Force's aging fleet of KC-135 tankers, and the Defense Department has indicated it might extend the deadline for delivering a proposal, according to multiple media sources.

EADS and its partner Northrop Grumman announced earlier this month that they would not bid on the proposal because they felt the RFP favored rival Boeing. Bloomberg news reports that Pentagon spokesman Geoff Morrell said in an e-mail that DoD would consider a "reasonable extension" to the deadline. He cited seven previous examples in which deadlines had been extended. “The Department has received notification from EADS North America indicating possible interest in competing for the Air Force’s KC-X Tanker and we would welcome that,” Morrell wrote. “Consistent with our commitment to conduct a fair and open competition, the Department invites proposals from all qualified contractors and, if necessary, we would consider a reasonable extension to the RFP deadline."

In a statement posted Friday on its website, EADS said it was "assessing the situation", but was still concerned that the terms of the RFP had not been changed. "(W)hile this development is a positive sign that the DoD seeks competition, it does not address EADS’ underlying concerns that the RFP clearly favors a smaller, less capable aircraft, and that the additional combat capability offered by our system may not be fully valued," the statement reads. "An important prerequisite for our consideration of entry into this competition will be a significant extension to the period within which to prepare and submit a proposal. EADS welcomes the DoD’s recent statement which indicated a willingness to extend the timeframe. Though this is essential, it is only one factor in making a decision for EADS to compete. In the end, the company will only submit a proposal if there is a fair chance to win, after evaluating all relevant factors."

A spokesman for Northrop Grumman said the company had not "yet" been contacted by EADS to discuss whether the two companies would again partner in making the bid.  Boeing told Bloomberg in an e-mail that it is "100 percent focused on submitting a fully responsive, transparent and competitive tanker proposal to the Air Force.” 

FMI: www.dod.gov, www.eads.com, www.boeing.com