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
Boeing claims USAF cost estimates for KC-45 favored EADS
Filed under: Boeing, Contract Awards, EADS, Northrop Grumman Corp., Protest, U.S. Air Force, commercial aviation, development program, logistics
As part of the source selection for any program the Government does an Independent Cost Estimate (ICE) for the various proposals. If it is for an ACAT ID program the OSD Cost Analysis Improvement Group (CAIG) does it, and if it is ACAT IC then the service’s cost people do it. Boeing is claiming that the ICE for their aircraft was flawed and that the USAF deliberately favored the Northrop Grumman proposal. See the story here. Having been involved in the process of generating these estimates I find it hard to believe that the independent cost analysts would deliberately do this. Read more
Boeing to bid on India’s new fighter
Filed under: Boeing, India, Military Aviation, production program
Boeing confirmed that they will submit a proposal to India for a new fighter. See the story here. Boeing will bid the F/A-18 against competition from Russia, Sweden, France, the UK and Lockheed Martin. The contract is for 126 aircraft, and if Boeing won would be a major coup for them, because as we previously wrote here their defense business is declining.
Defense Contracts Awarded on April 08, 2008
DEFENSE LOGISTICS AGENCY
Kinder Morgan Liquids Terminals LLC., Orange, Calif., is being awarded a maximum $32,000,000 firm fixed price, cost reimbursement contract for services and facilities to receive, store and ship turbine and aviation fuel. There are no other locations of performance. Using service is Navy. This proposal was originally electronically solicited with two responses. Contract funds will not expire at the end of the current fiscal year. Date of performance completion is Jun. 17, 2013. The contracting activity is Defense Energy Support Center, Fort Belvoir, Va., (SP0600-08-C-5808).
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