USAF used criteria GAO rejected in new DRFP: KC-30 backers

Update, December 8:

Bill Barksdale, Boeing KC-7A7 spokesman, emailed us with a response to this column. We have posted his note in the Comments section below.

Original Post:

The USAF used criteria in the current Draft RFP for the KC-X competition that had been rejected by the Government Accountability Office’s review of the Boeing protest last year, an analysis by prepared by EADS North America and Northrop Grumman asserts.

This unfairly tilts the current DRFP toward the Boeing KC-767 and is the basis Northrop why said it will not submit a bid unless major changes are made with the Final RFP.

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USAF RFP supports smaller airplane: Boeing

Bloomberg quotes the CEO of Boeing Integrated Defense Systems as saying the USAF Draft RFP for the KC-X competition favors the smaller 767.

Bloomberg writes:

Boeing Says Tanker Request Favors a 767-Based Plane (Update1)
2009-12-03 16:13:59.557 GMT

By Gopal Ratnam
Dec. 3 (Bloomberg) — Boeing Co. defense chief Dennis Muilenburg said the U.S. Air Force’s requirements for a new aerial refueling tanker favor a 767-based airplane.

“It’s important for us to allow the customer to finalize the requirement, but if you look at the current request for proposals it would push us toward a 767-based plane,” Muilenburg said today at a conference sponsored by Credit Suisse Group AG in New York.
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No KC-30 means no A330 plant in Mobile

Airbus has said it before but it is worth reminding people that if Northrop Grumman follows through on its statement that it will not bid the KC-30 in the KC-X competition unless significant changes are made to the Draft Request for Proposals (DRFP), Airbus won’t build an A330-200F assembly plant on its own in Mobile (AL).

We checked with Airbus immediately after Northrop’s announcement and a spokesman confirmed that the company’s position has not changed: there is no “business case” for an A330F final assembly line (FAL) without the KC-30 tanker contract.

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Northrop says no bid on tanker unless…

Update, December 2, 3:00 pm: DOD Buzz reports that Rep. John Murtha, a powerful House member, says there has to be competition for the KC-X and doesn’t rule out Congress stepping in.

This is something we forgot to mention in our Update below. We fully expect an effort on the part of some Members of Congress to renew the effort for a split buy. As we have written many times before, we can think of many strategic reasons this makes sense, let alone the political solution. But this also only makes sense if the procurement is doubled from the 12-18 per year proposed by DOD to 24-36 a year. We also believe the KC-777 is the best replacement for the aging KC-10.

There is enough strategic need to go around for everyone. That this continues to be a political football should be an embarrassment to all concerned.

Update, December 2:

(See Original Post below the jump for background.)

The prospect that Northrop Grumman won’t submit a bid unless the Final RFP is changed to allow for the different sizes between the KC-30 and the KC-767 is very similar to what happened with the 2006 competition.

The USAF then initially did not plan an “extra credit” for larger capabilities exceeding the minimum requirements of the airplane. Northrop threatened to withdraw from that competition unless the FRFP allowed for extra credit–and prevailed.

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KC-30 MRTT refuels fighters through boom, drogues

EADS released these photos of the KC-30 MRTT refueling fighters. The company previously released photos of refueling as viewed through the 3D controller’s panel video screen. The MRTT has now “passed gas” (as we like to say, much to the consternation of the more straight-laced crowd) through the new flying boom from the MRTT.

Source: EADS North America

These delayed tests have been the target of much criticism from Boeing supporters, who pointed out that EADS has been delayed in meeting milestones for the Royal Australian Air Force deliveries, which are now 18 months late. About six months of the delay was due to customer change-order requests.

USAirways defers Airbuses; may help in United competition

US Airways early this morning announced it has deferred deliveries of 54 Airbus wide- and narrow-body airplanes from 2010 to 2013 and beyond, including the A350 from 2015 to 2017.

While a blow to Airbus on the one hand, it could help the company win the order on at United Airlines on the other.

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Did Qantas further cut 787 orders?

The Center for Asia-Pacific Aviation (CAPA) reports that Qantas of Australia now only lists 25 firm 787 orders and 25 rights to purchase the airplane in its latest fleet plan. Boeing still shows 50 orders by the airline, which previously had 65 on order but  canceled 15 and restructured the delivery stream on the rest.

Update, Nov. 24: CAPA has now published this addition to the news link; the chart referred to below in contained in the article linked above):

[Correction: Qantas advises that the following chart, contained in its Investor Presentation, should in fact reflect the fact that there are 50 firm orders for the B787, not 25 firm and 25 purchase options, as illustrated]

KC-767 to benefit from 787 “surge” line

Key points:

  • The ability to increase production rates to sell more 767s in the coming years;
  • Lower production costs, which will be built into the KC-X bid in the hot competition with the expected Northrop Grumman KC-30 submission.

Boeing’s proposed KC-767 refueling tanker will benefit from plans to establish a surge production line for the 787 program.

The connection is not obvious, for Boeing didn’t suggest as much when it announced that Charleston (SC) will be the location for the second 787 production line. As Line 2 is being established, Boeing will put a “surge” 787 line in Everett (WA), where Line 1 is located. The surge line will be in the forward bay where the 767 line is, requiring relocating the 767 line to the aft part of the bay.

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Boeing sees new job cuts in 2010

Arabian Business quotes Boeing CEO Jim McNerney as saying more job cuts will be seen at the company next year as defense business declines.

Fly By Wire: US Airways 1549

We’ve just finished reading “Fly By Wire: The Geese, the Glide, the Miracle on the Hudson,” by William Langewiesche.

It’s about US Airways 1549, the Airbus A320 pilot by Chelsey Sullenberger and Jeffrey Skiles, forced to make an emergency landing in New York City’s Hudson River last January 15.

We’ve also been reading the reviews and reaction to the book, including Sullenberger’s reaction. We wonder if we’ve been reading the same book as the critics, who dispute the contribution the A320’s fly-by-wire system made to the safe landing.

To read the critics’ response, including Sullenberger, one would think Langwieche gave all the credit to the A320 for the safe landing and none to the flight crew. Nothing could be further from the truth.

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