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Boeing threatens to NOT bid on thr Aerial Tanker contract…Are they serious?

[ The Boeing 767 based Aerial Tanker in Italian Air Force colors ]

I wouldn’t think so…….

The Dog see’s this as a chess move….

They are complaining about Airbus subsidies…..

Airbus IS supported by the French, British, German and Italian countries…..

That’s fact….

It isn’t gonna change anytime soon in this economic atmosphere…

But lets be fair here…

The United States government goes to bat for Boeing  with tax credits and reserach…..and provides subsidies for countries that buy American Defense products…..

WTF?

The Dog still does not understand why PRESIDENT OBAMA doesn’t over-rule Defense Secretary Gates and cut a duel award contract deal????

It is a win-win solution to a big problem….

Boeing wins with a smaller tanker…

Airbus wins with a larger tanker….

The state of Washington winds with a order for airplanes…

The state of Alabama wins with an order for airplanes….

The Europeans are happy the American brought their plane…

And the Air Force finally will get a replacement ‘short ‘ tanker and ‘bridge’ tanker…..

JUST LIKE THEY HAVE NOW……(KC-135 and the KC-10 )….

WHAT IS HOLDING THEM UP????

TELL GATES HE WORKS THE PRESIDENT…..IT’S NOT THE OTHER WAY AROUND!!!

Boeing is considering not bidding for the U.S. Air Force’s KC-X tanker contract, a company source said May 14.

That would leave Europe’s EADS – which earlier this year had threatened its own pullout – as the sole bidder for the multibillion-dollar prize.

CEO Jim McNerney and other executives are privately debating whether their company can even win, much less make a profit, on the fixed-price contract, one senior Boeing executive said.

“Is it conceivable that we wouldn’t bid?” the executive said. “We are proud of the fleet and want it to win the contract so the Air Force keeps flying our planes. Your heart says you have to be part of it, but a CEO’s job is to make sure that the heart doesn’t make a decision the head can’t live with.”

Boeing spokesman Damien Mills insisted May 13 that the firm will bid.

But Boeing supporters have long complained that illegal subsidies would lower EADS’ bid price, and company officials have said for several weeks that the Pentagon appears to have shifted requirements to favor the European firm.

Earlier this year, DoD officials – eager to avoid a sole-source award to Boeing in the wake of Northrop Grumman’s withdrawal – delayed the bidding deadline 60 days to allow EADS to bid. DoD also allowed the European firm to enter the contest without a U.S. firm as a partner.

Pentagon officials say they have changed neither the requirements nor the way the bids will be evaluated.

“Jim doesn’t want to be in a position that we are going to bid a losing bid,” the Boeing executive said. “It gets difficult when you’re dealing with a competitor who has flat-out said on several occasions that they’re going to underbid us. How can they do that if the list price of their plane is higher than the list on our plane? Because they are subsidized and we’re a for-profit company, so the question we’re asking is: How do we compete against four governments?”

The average cost of a Boeing 767-200ER is $133 million, of an Airbus A330-200F, $194.8 million, according to Teal Group aviation analyst Richard Aboulafia.

The executive said Boeing has not arrived at a decision. He said raising the prospect of sitting out was not a negotiating tactic. ( BULL S*#T)

………..

Boeing executives and its supporters say Airbus, which has garnered more than half of the commercial jet market in recent years, has been powered by nearly $200 billion in subsidies over four decades. The World Trade Organization recently resolved a 2009 lawsuit filed by the U.S. government, finding Airbus guilty of using illegal subsidies to win contracts with predatory pricing. Europe has countersued, claiming Boeing benefits from research and development tax credits.

More……..

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May 14, 2010 Posted by | Aircraft, Blogs, Breaking News, Counterpoints, Government, Media, Men, Military, PoliticalDog Calls, Politics, The Economy, Updates | , , , , , , , , | Leave a comment

The New Aerial Tanker bid is around the corner?

Maybe…..

The Dog still does not understand why there isn’t a dual bid?

The Air Force currently has two types of tankers…the big KC-10 (DC-10) and the smaller KC-135 (B-707)…why are they torturing themselves and the Congress?

Release of the final request for proposals (RFP) for the U.S. Air Force’s KC-X tanker could lead to a contracting conundrum. If the Northrop Grumman/EADS North America team follows through on its threat not to bid, the Pentagon’s ­strategy designed to elicit low, fixed-price offers from competitors could backfire.

With only Boeing in the running, the Pentagon’s plan could lead to insufficient insight and auditability into the contractor’s pricing.

Normally, when the government anticipates only one bidder, it structures the contract to include insight into a program’s costs and performance to keep a company honest. But that “insight” is not free. The contractor must designate personnel to the task, and the cost is passed on to the government. With multiple bidders, the cost-control mechanism comes through the competitive market forces.

Pentagon officials structured the RFP to lure Northrop Grumman into the game, but the company is still weighing its options. A key change to the new RFP, released Feb. 24, is designed to reduce the financial risk for bidders, but it is not dramatic, according to contractors.

A sole-source deal would leave the Pentagon in the precarious position of falling short after striving for eight years to craft a contest to build KC-135 replacements. The stakes are high for industry, with production expected to cost about $35 billion for 179 refuelers. They are also high for the Air Force acquisition corps, which has had two major awards—the 2008 selection of Northrop Grumman for the first KC-X competition and an earlier choice of Boeing to build combat search-and-rescue helicopters—overturned by government auditors.

Despite the sordid history of multiple KC-X false starts, Deputy Defense Secretary William Lynn says the forthcoming KC-X source selection is the “flagship” program for the Pentagon’s acquisition reform, which aims to promote transparency and motivate contractors to deliver on cost and schedule.

Despite the grand expectations, the Air Force may lose the chance to redeem its acquisition credo if a KC-X duel does not come to pass. Northrop Grumman CEO Wes Bush has threatened not to bid if the financial risk for the company is deemed too high. Team officials have said dramatic changes to the September draft RFP—which was widely viewed as favoring the Boeing 767 design—would be needed to justify crafting a proposal that could cost as much as $100 million.

More………

March 2, 2010 Posted by | Aircraft, Blogs, Breaking News, Government, Law, Media, Military, Other Things, Politics, The Economy, Travel, Updates | , , | Leave a comment