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Home Front Economy
Pentagon to Rebid $40 Billion Air Force Contract
2008-07-10
The Pentagon said today that it will rebid one of its largest programs -- a $40 billion contract to build a fleet of new aerial refueling tankers for the Air Force, essentially starting from scratch on a years-delayed deal to replace the service's aging aircraft.

Defense Secretary Robert M. Gates announced today that John J. Young Jr., defense undersecretary for acquisition, technology and logistics, will oversee the competition and he wants it done quickly. The Air Force earlier this year awarded the contract to a partnership of Northrop Grumman and European Aeronautic Defence and Space, the parent of Airbus, but rival Boeing protested the decision as unfair.

Some defense analysts said they are skeptical that the Pentagon could rebid the complicated contract before year's end, and many anticipated that it would likely get kicked to the next administration, especially given that Gates recently fired the Air Force secretary and his chief of staff after questioning their leadership.
Suggestion: when they re-bid, specify that the winner gets to build 75% of the aircraft, and the second-place finisher gets to build 25%, each at whatever price was bid. That way there's a strong incentive to win but also reason to stay in the game. The Air Force has said previously that they were going to do the tankers in three lots, so even if you lose in the first bid, you have reason to build some planes and hope to do better next time.

This would force Boeing to stay honest and allow Airbus a shot of winning.
Posted by:Fred

#9  agree OS with delay unacceptable; if Boeing hadn't poinsoned the well with tanker bid V 1.0 and tried to bribe USAF folks we would already see new birds on the ramp.
i would like to see your info re: maintenance issues, the 767 is proven and has gone thru several system upgrades, the airbust bird hardly exists. ok so it says NG on the grille, but underneath it is still airbust.
for the record: 18 of 26 years active duty was wrenching on Ironworks aircraft, so I do have a soft spot for Bethpage.
Posted by: USN,Ret.   2008-07-10 17:55  

#8  USAF/NRO satellites? Like the one that failed to ever become operational and got popped by an SM3?

Not exactly inspiring confidence.

I hope they do this contract QUICK, and mark it for split production and subbing out.

My only beef, other than the inferior aircraft and short legs and lower cargo capacity and older design (= more maint), of the Boeing bid was their ramp is VERY slow compared to the NG/EADS delivery schedule.

We need something that's good enough to meet the specs - and we need it damned fast.

This delay isn't helping things at all, no matter what aircraft we end up with.
Posted by: OldSpook   2008-07-10 17:46  

#7  Is his dad the Best Astronaut ever? I can't find the info.


John Young Jr. that is...
Posted by: .5MT   2008-07-10 16:13  

#6  USN Ret hits the bullseye.

BTW, Young is the guy who also (as of June) controls most of what used to be USAF and NRO satellite procurements.
Posted by: lotp   2008-07-10 15:43  

#5  Not a Boeing-phile, but go back and read the RFP. The USAF screwed the pooch when they wandered from the requirements and started putting a lot of brownie points on the niceties.
And all the wanking about an old airframe; that is only a tube, the real value is in the systems; and those are top shelf. New for new's sake is what gets you Micrsoft Vista.
Posted by: USN,Ret.   2008-07-10 14:46  

#4  Gosh-darn it, we're going to rebid this until Boeing wins! I don't care how many times it takes!

- Sec'y Gates
Posted by: gromky   2008-07-10 13:11  

#3  When visiting airshows and talking to the brave men and women who fly the refuelers--boy they are old, old aircraft. If making it impossible for America to fight or have a useful Air Force is the goal, it's only a decade away.
Posted by: Herb Jomolet3634   2008-07-10 12:52  

#2  Maybe the AF should review the specs in the RFP that allowed Boeing to think it could win with an outdated aircraft.
Posted by: Nimble Spemble   2008-07-10 12:01  

#1  Shoot makes sense to me Fred. Maybe help increase the production shedule to make up lost time and have some mission diversity.
Posted by: swksvolFF   2008-07-10 11:41  

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