Boeing Has Clear Sailing On KC-X
Now that Northrop has decided not to bid on the contract the pressure is on Boeing. The Chicago based company has made several announcements...Boeing Tries to Find a Graceful Exit for the C-17
Boeing (BA) is reducing the production rate of the C-17 transport aircraft at their Long Beach, CA plant. From a high of 15 a year they are now...Still Some Support For Northrop
Filed under: Boeing, Congress, EADS, KC-X, KC-X Tanker News, Northrop Grumman Corp., Syndicated Industry News
Congressman Howard McKeon (R-CA) put out a statement today supporting Northrop. He said that he was “disappointed that Northrop Grumman has decided not to submit a proposal to build the Air Force’s next generation aerial refueling tanker.” He would like Northrop to reconsider its position.
Northrop is currently headquartered in California and has several thousand employees there. It is planning on moving to the Washington DC area in the near future.
The decision leaves Boeing as the sole announced bidder.
Danish Aerotech’s Deal With Boeing Starts Paying Dividends
Filed under: Boeing, Business Line, Companies, Contract Awards, Countries, Denmark, Events, Military Aviation, logistics, production program
Last year Boeing signed an agreement to work with Danish Aerotech A/S on joint military deals. One reason was the hope that Denmark will invest in F/A-18 aircraft to replace their F-16 force. The country is looking at different aircraft including the SAAB Grypen for this mission. Now Boeing has awarded them a contract to build support assemblies for the launchers that go on ships to fire Harpoon Anti-surface missiles. While a small contract valued at around $1.5 million it helps the companies start working together on projects. Hopefully for Danish Aerotech Boeing will be able to use them to do support and modification of their aircraft.
Boeing Will Submit Proposal Based on K-767
Filed under: Boeing, EADS, KC-X, KC-X Tanker News, Kansas, Northrop Grumman Corp., Proposal, Syndicated Industry News, Washington
As it did in the last contest two years ago Boeing (BA) plans to submit a 767 based tanker. This is similar to the ones they are already building for Japan. To differentiate it from previous versions they are calling it a “NewGen” aircraft. Boeing will upgrade the basic 767 design with a new fueling boom and parts of the 787 cockpit technology.
There is still no formal word from Northrop Grumman (NOC) or EADS (EADS:P) if they plan to submit a proposal this time around.
EADS Supports Bid For KC-X
Filed under: Alabama, Boeing, EADS, KC-X, KC-X Tanker News, Northrop Grumman Corp., Protest, Syndicated Industry News
It is being reported by various sources that EADS is pressuring Northrop Grumman to go ahead and submit a bid for the new KC-X RFP. Northrop had informed the Government that they planned not to if the terms were not significantly changed. They felt the RFP was favoring Boeing’s cheaper, smaller KC-767 aircraft.
The final RFP came out two weeks ago and still no word from Northrop that they will go ahead and submit something in May. EADS obviously would like another chance to win the contest after they lost the last one to Boeing’s protest in 2008. The $35 billion would go a long way to make up for the lost A400M revenue.
Boeing Unions Support Single Source Contract
Filed under: Alabama, Boeing, EADS, KC-X, KC-X Tanker News, Syndicated Industry News, Washington
According to The Seattle Pilot-Intelligencer the International Association of Machinists District 751 wrote to the new Build Them Both Coalition that they support Boeing’s bid for the KC-X. They were responding to a letter sent to them by Build Them Both. The IAM argued that a split buy would not meet their goals of maximizing Washington jobs.
New Group Advocating For Split Tanker Buy
Filed under: Alabama, Boeing, Congress, EADS, KC-X, KC-X Tanker News, Northrop Grumman Corp., Syndicated Industry News, Washington
The Washington Post writes today about a new group buying advertisements to support the concept of buying KC-X tankers from both Boeing (BA) and Northrop Grumman (NOC). The group is called “Build Them Both” and its financiers have so far remained private. The idea of a split buy was floated last year but despite the ability to produce aircraft faster the related logistical costs are so high that the Air Force and DoD won’t consider it.
The article may be found here as the second part of the post.
Hopes High That This Try Is The End Of The KC-X Contest
Filed under: Alabama, Boeing, Congress, EADS, KC-X, KC-X Tanker News, Northrop Grumman Corp., Syndicated Industry News, Washington
Over at BNET: Government where I also publish I have a piece on how this third try will be the winning one for the Air Force and Defense Department to get a new aircraft to replace the aging KC-135 fleet. There still remain many challenges with the contest as Northrop may not bid and Boeing has expressed concerns with the fixed price portion of the contract.
It will be an interesting next few months as this is all worked out. Next deadline is May 10th when proposals are due.
New RFP Released Today
Filed under: Boeing, Congress, Department of Defense, EADS, KC-X, KC-X Tanker News, Northrop Grumman Corp., Protest, Syndicated Industry News
The Air Force and Department of Defense acquisition officials briefed Congress and the press today on the new RFP for the KC-X. It had some slight changes from the draft release a few months ago. The key question is will Northrop bid this time around?
They won the last contract to have that thrown out on Boeing’s protest. Much more to come on this in the days ahead.
Governors Support Boeing Tanker in DC Press Conference
Filed under: Boeing, Congress, KC-X, KC-X Tanker News, Syndicated Industry News
Seattle’s Channel 5 covered the Governor’s press conference on the KC-X Tanker contract, in Washington D.C, this afternoon. According to Channel 5:
At the National Press Club in Washington, D.C., Washington state Gov. Chris Gregoire announced the launch of a bi-partisan coalition of governors to push for Boeing-built refueling tankers. It’s called the U.S. Tanker 2010 Coalition, and other states represented include Oregon, Kansas, Connecticut, Maine, Utah, Illinois, Missouri and Iowa – all states with a stake in the outcome, mostly as suppliers of parts.
“Together, we are going to make it known we’re going to fight for this work,” Gregoire said Monday.
Read more at King5.com.
Boeing Looks To Get Into Vehicle Maintenance
Filed under: Boeing, Business Line, Companies, DLA, Events, Proposal, Services, U.S. Army, logistics, production program
Using their vast amount of experience supporting aircraft — both military and civilian — Boeing (BA) submitted a proposal to the U.S. Army to provide maintenance management and support at two depots primarily concerned with vehicle and weapon maintenance. The Industrial-Product Support Vendor (IPV) contract is worth over $190 million. The work at Anniston Army Depot in Alabama and Red River Depot in Texas is to repair, reset and recapitalize vehicles like the M1 tank, the M2 IFV and the Stryker ICV.
Boeing does not make many of these types of vehicles but at the depots the contract will provide support, forecasting and inventory management. This is all work that Boeing is experienced in with aircraft and they work with the Army already on helicopters such as the CH-47. The bid was submitted to the Defense Logistics Agency (DLA).
KC-X Fully Funded In 2011 Budget
Filed under: Boeing, Congress, EADS, KC-X, KC-X Tanker News, Northrop Grumman Corp.
President Obama sent his 2011 budget to Congress yesterday. It contains as part of its record defense spending $12 billion for the development and initial production of the new KC-X tanker. The Administration and the Air Force have a goal of awarding a contract this Summer and beginning the development of the new aircraft fairly fast.
This plan is fraught with difficulties based on the history of the program. The two main competitors, Boeing (BA) and the Northrop Grumman (NOC) team, have their own supporters in Congress and their own issues with the approach the Air Force is taking. It can be expected that the source selection will be difficult and the chances for a protest fairly high if both groups do submit bids.
Defense Earnings Start Coming In With Mixed Results
Three large defense contractors reported recently with mixed results. Boeing and United Technologies (UTC) beat expectations while General...Australian AEW Aircraft To Be Supported By Manufacturer: Boeing
Filed under: Australia, Boeing, Business Line, Companies, Contract Awards, Countries, Events, Military Aviation, development program, logistics, production program
It was announced that Australia had awarded a contract to Boeing (BA) to provide service and support to the new Airborne Early Warning (AEW) aircraft being purchased by the Pacific nation. The new aircraft is based on the 737 airliner and is fitted with a variety of radars and communications gear. The five year contract is worth over $600 million if all options are exercised. Boeing has been building these aircraft for the last few years and the six when delivered will provide a significant upgrade to the Royal Australian Air Force’s capabilities.
The contract will be executed by Boeing’s subsidiary in Australia and will lead to the creation of a few hundred jobs. The contract is a Performance Based Logistics (PBL) contract similar to what the U.S. military has been using recently. The program not only includes the aircraft, but training and mission planning elements as well. Two aircraft have been delivered to date.
Northrop And EADS Wait On Final RFP Release
Filed under: Boeing, Congress, EADS, KC-X, KC-X Tanker News, Northrop Grumman Corp., Syndicated Industry News
The KC-X Tanker RFP is expected to be released in the next few weeks. Previously Notthrop and its partner EADS had threatened not to participate as they felt the draft RFP was biased in favor of Boeing. Now they are saying they will wait and see what is in the RFP when it is put out. It is in the best interest of the Air Force and the U.S. Government to receive multiple bids on the project.
Without competition the chance of this third attempt proceeding will be difficult. Sole sourcing the contract to either Boeing or the Northrop team will cause an outcry in Congress no matter what as both companies have their supporters. Not putting out a competitive RFP will only lead to protests and further delays in what has become a critical program to replace the aging KC-135 aircraft.
We are all going to have to wait to see what the Air Force puts out and how Northrop, EADS and Boeing respond to it.
Boeing and Lockeed Martin Announce Reorganizations To Adjust To Less Spending
Reacting to perceived changes in future defense spending both Boeing and Lockheed Martin announced some restructuring of their defense businesses....C-17 Continues To Provide For Boeing
With the passage of the 2010 defense budget Boeing (BA) is assured of further production of the C-17 transport. Despite the wishes of the Obama...Brazil Delays Fighter Order
Filed under: Boeing, Brazil, Business Line, Companies, Contract Awards, Countries, D'Assault, Events, Military Aviation, SAAB, production program
One of the biggest contracts currently under consideration is Brazil’s buying of modern fighter aircraft. Right now bids from Dassault, SAAB and Boeing are under consideration. This along with India’s new fighter program are two of the larger aviation contracts waiting for award. Brazil as part of this contract is expecting a great deal of investment in their economy using this and a major helicopter deal with Eurocopter to increase the capability and technology of their defense industry.
Now it is being reported that Brazil will delay a final decision on this contract until early next year. The decision is related to how much investment each company is willing to make and whether Brazil will be able to use their technology in future aircraft construction. Because the contract is so important especially to Dassualt and SAAB the amount of technology transferred may be high.
Boeing Begins Offsets In India
Boeing recently sold the P-8I maritime patrol aircraft to India. This country requires offsets for foriegn companies winning contracts and Boeing...Boeings EA-18G Electronic Warfare Aircraft To Enter Full Rate Production
The Defense Department approved the EA-18G electronic warfare aircraft to enter full production. Boeing was awarded a $400 million contract to...A-12 Going To The Supreme Court As Boeing And General Dynamics Face Last Option
Boeing and General Dynamics lost another appeal on the A-12 military contract case. The two companies and the Federal Government have been going...Boeing Confirms Use Of Wichita Facility If KC-X Won
Filed under: Boeing, Congress, KC-X, KC-X Tanker News, Kansas, Syndicated Industry News
Boeing’s (BA) Wichita, KS plant has supported may of their military programs over the years. In their last bid for the KC-X proposal the 767 aircraft would have been modified to become the new tanker there. In October the company would no longer make that commitment to using the Wichita plant. The company had discussed using a lower cost plant to do the work with an eye to lowering their overall cost. This obviously was a blow to the employees and the political supporters of the work being done there.
Now Boeing announced yesterday that at least some of the military conversion of the aircraft will be carried out in Wichita. This will gain them even further support from some key Senators and Congressmen as well as there unions. In many ways the company had no real choice. The Wichita plant has long been established, can do the work and needs it. The announcement makes sense at this time.n
Boeing Seeing Domestic Defense Business Problems
Boeing (BA) is starting to understand that the American defense market may be worse in the next few years. At a recent forum on the defense...Good News For Boeing In 2010 As More C-17 Transports Will Be Ordered
In a piece of good news for Boeing it looks like Congress will continue to buy C-17 transport aircraft in the 2010 budget despite requests from the...
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