Reports That Northrop Won’t Bid
Filed under: Boeing, Congress, EADS, KC-X, KC-X Tanker News, Northrop Grumman Corp., Proposal, Syndicated Industry News
It is being reported that Northrop Grumman (NOC) will not submit a proposal in response to the new KC-X RFP released at the end of last month. Supposedly the announcement will be made after the markets close. Northrop had written to the DoD in December saying they most likely would not without changes in the RFP to make it fairer to the Airbus 330 based aircraft.
There is no word on whether EADS will find another partner or bid by themselves for the $35 billion contract.
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.
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).
Northrop Threatening No Participation Over Cost Data
Filed under: Alabama, Boeing, Department of Defense, EADS, KC-X, KC-X Tanker News, Northrop Grumman Corp., Proposal, Protest, Syndicated Industry News
Yesterday Northrop announced that it is considering not participating in thew new KC-X competition. They are concerned that the the way the price requirement is structured may not be fair to them. They are also pursuing the complaint that their cost data was provided to Boeing during the protest of the last award and want access to the same information.
If Northrop and EADS don’t submit a bid it will be hard to get actual competition on the contract. That would leave just one submission, Boeing, or perhaps two from them if they go the route of having a 777 as well as a 767 proposal. This situation would make it hard for the Air Force to proceed.
The chances of Northrop doing this is low and the Department of Defense realizes it. This is the largest procurement coming down the road and both EADS and Boeing need the work. Of course if there is really a belief that their bid cannot win no matter what then Northrop should just save the money and not prepare one. This is only the draft RFP so the next year or so should be interesting.
Wichita Waits On The KC-X
Boeing has maintained a facility at Wichita, KS for years. In their last proposal for the KC-X Boeing planned on using this plant to do the military conversions of the aircraft as it has for so many others in the past. Unfortunately with the new proposal Boeing no longer makes that guarantee. They are trying to minimize their total cost and that may require the use of another site then Wichita. Unfortunately this will be bad for the Wichita plant as it has been looking for work to keep it open in the future.
As the proposals come in things like this will be interesting to look out for.
Saab updates Gripen proposal for Brazil
STOCKHOLM, Sweden, Oct. 5 (UPI) -- An updated proposal for the Brazilian air force envisions a program by Saab to develop, operate and maintain the next generation of the Gripen fighter jet.
GE, Rolls-Royce team submits new approach
EVENDALE, Ohio, Sept. 15 (UPI) -- The GE Rolls-Royce Fighter Engine Team has submitted a fixed-price contracting proposal to support the U.S. Defense Department's F-35 aircraft program.
Iran wants U.N. to ban attacks on nuclear plants
VIENNA, Aug. 14 (UPI) -- Iran wants the United Nations to vote on a proposal that would prohibit attacks on nuclear installations anywhere across the world. As a first step Iran has secured discussion on the topic at the U.N. International Atomic Energy Agency general conference in September.
India Rejects Rafale For New Fighter
Filed under: Boeing, Business Line, Companies, Contract Awards, Countries, D'Assault, EADS, Events, India, Lockheed Martin, MiG, Military Aviation, Proposal, SAAB, production program
Update — Flight International is reporting that India says it has not ruled out any competitor in the program.
The Indian Air Force is looking to purchase an advanced fighter to add to their inventory. Six foreign companies had submitted bids for the 126 aircraft order. Now word comes that the French proposed Dassault Rafale was eliminated from the competition. The Indianexpress.com reports that publicly it was stated the aircraft did not meet certain “qualitative” requirements. It was also said that the proposal submitted showed the aircraft did not meet some of the technical requirements for the program. This means that the contest will continue with Boeing, Lockheed Martin, SAAB, MiG and Eurofighter participation for now.
The deal is one of several that India is proceeding with in an attempt to upgrade the technical capability of their armed forces. In the past the country had tended to buy from Russia or England. India has also spent the last several years developing an indigenous arms industry. Although lately they have turned to outside sources to include Israel and the U.S. for advanced weapons.
Currently there are several nations looking at buying advanced fighters. The Rafale has not been bid for many as most of the competition has been between the F/A-18G, SAAB Gripen, F-35 JSF and the Eurofighter Typhoon. The Indian contract is certainly one of the largest percolating.
Sikorsky and Workers Avoid Strike
Filed under: Business Line, Companies, Connecticut, Events, Services, Sikorsky, States, U.S. Army, U.S. Marine Corps, UTC, production program
Sikorsky and its unionized workers were able to agree on a contract today avoiding another potentially costly strike. The Journal Inquirer reports that the Teamsters Union and Sikorsky agreed to a contract on Sunday. Three years ago a long strike severely impacted the ability of the company to build aircraft at the desired rate of production. Since then Sikorsky has signed a big UH-60 Black Hawk contract as well as begun the CH-53K program and hopes to possibly win the CSAR-X re-competition. With all the work underway the new contract is substantially better in terms of pay then the last one. The strike was about employee contributions to health insurance although the union ended up settling on the company’s proposal.
New MRAP Proposal Submitted by Oshokosh
Filed under: BAE Systems, Business Line, Companies, Department of Defense, Events, Force Protection, Industry Analysis, Navistar, Oshkosh Truck Corp, Proposal, development program, logistics, production program
As was written about at BNET: Government the U.S. military is moving forward with a new generation of MRAP vehicles that will be lighter and more maneuverable for Afghanistan. The Business Journal of Milwaukee writes that Oshkosh submitted its proposal on 9 January for the program. Oshkosh along with BAE, Navistar and Force Protection would seem to be the main contenders for the program. The MRAP-All Terrain Vehicle program will be managed like the recent JLTV award for multiple development contracts with a test and evaluation program for different vehicles. More then one successful design may be awarded production contracts as the program goes.
KC-X Advertisement Makes DoD Unhappy
Filed under: Boeing, Contract Awards, Department of Defense, EADS, Federal Budget Process, GAO, Military Aviation, Northrop Grumman Corp., Proposal, Protest, U.S. Air Force, commercial aviation, logistics, production program
Northrop Grumman took out an ad this week in the Washington Post supporting its proposal for the KC-X mission. The Wall Street Journal reports that the content of the advertisement made folks over at DoD most unhappy. That is because it quotes an unidentified official as saying the A-330 was $3 Billion cheaper then the B-767 overall. Read more
English government procurement rules too inflexible for most businesses
The English government has been trying to expand the participation of small businesses in its procurements. Now a survey of 500 small and medium businesses finds that most are not willing to make the effort to bid on government work due to the complexity and formality of the procurement process. This has also been a criticism in the US. The government RFP, proposal and evaluation process is too complicated most businesses to make the effort. One advantage that the US does have over the UK is that they do not charge companies for access to their listings of available contracts. Most of that is now done via the web for free.
See this article in printweek.com for more.
KC-45 fallout continues
Filed under: Boeing, Contract Awards, Department of Defense, EADS, GAO, Military Aviation, Northrop Grumman Corp., Proposal, Protest, U.S. Air Force, commercial aviation, logistics, production program
With the decision to not go ahead with the KC-45 recompete and the cancellation of the planned source selection, the Pentagon has decided that due to the decision to cancel the original contract Northrop Grumman, and EADS, will receive some termination fee. This will pay the company for any work that the did while the contract was active prior to the protest and GAO recommendation to recompete the proposal. Termination fees are common for when the Government cancels the contract for administrative reasons. If ti is canceled due to non-performance then it gets a little more difficult. Due to the high visibility of this decision, I am sure the Congress will take a look at any money payed to Northrop Grumman.
See the Los Angeles Times for more on this.
Gates gives up
Filed under: Boeing, Contract Awards, Department of Defense, EADS, Federal Budget Process, GAO, Military Aviation, Northrop Grumman Corp., Proposal, Protest, U.S. Air Force, commercial aviation, development program, logistics, production program
The Secretary of Defense today canceled the KC-45 re-proposal. He decided that there was not enough time to do this before the end of President Bush’s second term. The announcement was made via a press release this afternoon. Secretary Gates stated that ““It has now become clear that the solicitation and award process cannot be accomplished by January,” he said. “Thus, I believe that rather than hand the next administration an incomplete and possibly contested process, we should cleanly defer this procurement to the next team.”
This decision ends temporarily a seven year saga that started with Boeing being given a lease for 767 tankers, through a proper competition that was thrown out by the GAO, and what was expected to be a quick recompete starting this month.
See the actual release at DefenseLink.mil.
JLTV very important to Oshkosh
Filed under: Department of Defense, Federal Budget Process, Northrop Grumman Corp., Oshkosh Truck Corp, Proposal, logistics, production program
Oshkosh Industries has struggled over the last 18 months with the downturn in the economy. The stock is down almost 75% since last September. The slowdown in the world economy, especially the construction industry, has hit the company hard. It has received several US defense contracts for heavy vehicles and MRAPs. It also is teamed with Northrop Grumman on the Joint Light Tactical Vehicle (JLTV) proposal for a new tactical vehicle for the US military. If its team wins that will be a lot of work replacing the ubiquitous HUMVEE used by all four of the US services. That would offset the struggles it has been having with its conventional business lines.
See The Milwaukee Journal-Sentinal article for more.
Boeing workers want strike, union postpones
Filed under: Boeing, Contract Awards, Department of Defense, GAO, Military Aviation, Proposal, Protest, U.S. Air Force, commercial aviation, logistics, production program
Update – The machinists started their strike last night. While some work could be done, no aircraft assembly is possible. This will delay the 787 further, and have a negative impact on their bid for the KC-45.
See a The New York Times story here.
The Boeing machinists voted to strike effective Wednesday night, but the leaders of the Union have given Boeing 48 more hours to come to an agreement. The strike will start tonight if no deal is reached. The leadership decision was controversial and not well received by the members who had voted overwhelmingly to strike. Any extended strike, as Sikorsky illustrated in 2006, will be very disruptive to the delivery schedules for all Boeing problems. It is especially key now as Boeing is expected to turn in their new proposal for the KC-45 soon.
See the St Louis Business Journal for some more information.
Union and Boeing try to agree
Filed under: Boeing, Contract Awards, GAO, Military Aviation, Proposal, Protest, U.S. Air Force, logistics, production program
Boeing is negotiating with the machinists union who make up the core of its workforce on both military and commercial aircraft. Today they sent their best and last offer. This includes the employees who will build the tanker for the US Air Force. So in the middle of trying to write and cost a proposal to the Air Force for a program that is seen as key to the company holding onto a market they are trying to prevent work stoppages. Strikes are the kind of thing that can kill a program’s schedule.
See Excite News for more.
Update: The union leaders have recommended rejection of the Boeing proposal and striking on 4 September. While this will have a large effect on civil aircraft production it won’t help Boeing get ready for the KC-45 if they win again.
See Bloomberg.com for a story on this mess.
Former Undersecretary of Acquisition criticizes Boeing
Filed under: Boeing, Contract Awards, EADS, GAO, Military Aviation, Northrop Grumman Corp., Proposal, Protest, U.S. Air Force, commercial aviation, logistics, production program
For more see The Guardian.
Gripen NG pitched to the Netherlands
Filed under: Holland, Military Aviation, Proposal, SAAB, production program
SAAB submitted a proposal to the Dutch government for replacement of the F-16 Fighting Falcons in service at this time. The current plan is to buy F-35 JSF aircraft. The SAAB proposal includes the Gripen aircraft, support, training and spares. No price for the 85 aircraft proposal was provided. If it is competitive there may be some desire by the Dutch to buy this aircraft over the F-35. SAAB has also proposed a Gripen to Norway and India.
For more see FlightGlobal.com.
Boeing and KC-45 in turmoil
Filed under: Boeing, Contract Awards, Department of Defense, EADS, GAO, Military Aviation, Northrop Grumman Corp., Proposal, Protest, U.S. Air Force, commercial aviation, logistics, production program
After meeting with DoD and the US Air Force to discuss the new tanker RFP due to the GAO upholding their protest, Boeing is now saying that without significantly more time to prepare a proposal they may have to drop out. The new schedule is for the Boeing and Northrop Grumman teams to submit by the end of October with a decision before the new calendar year. Boeing is saying that they may need to bid a larger aircraft then the KC-767 proposed last time due to the fuel capacity and range requirements. A variant of the 777 would have to be used. Boeing supposedly is asking for a more then 180 day delay in the submissions. EADS and Northrop Grumman will most likely submit a tweaked version of their original winning proposal.
For more see The Wichita Business Journal and WashingtonPost.com.
Boeing moves forward with KC-45
Filed under: Boeing, Contract Awards, Department of Defense, EADS, Federal Budget Process, GAO, Military Aviation, Northrop Grumman Corp., Proposal, Protest, U.S. Air Force, commercial aviation, logistics, production program
Despite reports earlier in the week, it seems that Boeing will pursue the KC-45 re-proposal. See a story here. The two possible contenders met with US Air Force and DoD representatives to talk through the new RFP. The goal of OSD is to award a contract by the end of the year. The tanker replacement process started 7 years ago with the new delays a KC-145 replacement may not be available until 2012-2014.
KC-45 protest summary report released
Filed under: Boeing, Contract Awards, Department of Defense, EADS, GAO, Northrop Grumman Corp., Protest, U.S. Air Force, commercial aviation, development program, logistics
The GAO released a summary of why they upheld the protest by Boeing over the KC-45 award. See an article here. The chief reason was due to the Air Force’s failure to properly apply the criteria for source selection. Of the several reasons listed two ones that stand out is that they gave EADS credit for exceeding a requirement when they should not have, and rather than just noting the risk associated with the Boeing bid the Air Force calculated a dollar figure to overcome that risk. This alone drove up the cost proposal of the Boeing K-767 aircraft. The Air Force technically still does not have to withdraw the award to Northrop Grumman and EADS, but they would be best off reopening the competition.
Canada looks at new armored vehicles
This story says that GD is pitching upgraded Light Armored Vehicles (LAV) used by the US to the Canadian Defense Department. Because the US chose a variant of a Canadian assembled vehicle originally designed in Europe the GD proposal is actually made in Canada. Kind of a win-win for the Government there. Canada is not necessarily looking for a new vehicle, but due to operational experience in Afghanistan a heavier, more armored vehicle is attractive. More to come, I am sure, on this issue.
Lockheed protests BAMS award
Filed under: Boeing, Contract Awards, Lockheed Martin, Military Aviation, Northrop Grumman Corp., Protest, U.S. Navy, development program
As previously discussed here the US Navy awarded the Broad Aeriel Maritime Surveillance (BAMS) contract to Northrop Grumman. The two losers were Boeing and Lockheed Martin. Now according to this story Lockheed is protesting. Northrop Grumman won with a version of the Global Hawk, Lockheed had proposed a scaled up version of the Predator UAV. It was not surprising that Global Hawk won as the Navy had already tested it, but Lockheed is basing their protest on the word that the Navy found their proposal technically adequate and cheaper then the Northrop one. Read more
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