Boeing Confirms Use Of Wichita Facility If KC-X Won

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

VH-71 Suffers Cost Breach and Connecticut is Lobbying

The Connecticut Post reports that the VH-71 new Presidential helicopter program suffered a “Nunn-McCurdy” cost breach. There are two levels of this breach and the higher one, a 25% increase, requires the Secretary of Defense to certify the program is still required for the U.S. national defense. The fine Senators and Congressmen from Connecticut have pricked up their ears at this development and want to meet with DoD to discuss canceling the program and giving it to Sikorsky. The contract with Lockheed Martin has seen considerable cost growth due to requirements creep since the contract was awarded. This has required wholesale changes to the EH-101 platform selected. Hence the great increase in cost and schedule for the program. Of course the DoD will have to weigh the savings if another vendor proposes something cheaper with the time required to restart the program. With a new administration it is conceivable that the contract could be canceled and started over, like ARH, but it probably won’t happen.

Congress begins political war to overturn KC-45 decision

Based on this story run in The Hays Daily News, Senators and Congressmen from the losing states are beginning the process to use politics to overturn the KC-45 award to Northrop-Grumman and EADS. Unfortunately there are Senators and Congressman from the states that stand to gain from the award. Read more

Kansas pulls for Boeing

Another article in a local paper, here the Kansas City Star, about the economic effect of the KC-X contract. The article spells out the economic effect of the win to the Wichita, KS area. Similar articles have been running in the Alabama papers about how great the win by Northrop-Grumman and EADS would be to the Mobile area. Read more

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