Posts Tagged ‘northrup grumman’
If any of you have been following this saga – It looks like the government has decided to open up the bids again for the new Air Force refueling tankers. The French company EADS and Northrup Grumman originally won the bid over Boeing – even though Boeing had been supplying our USAF for decades. Well, Boeing appealed stating they had the best proposal – and – after review – the GAO agreed there were errors in the selected proposal – so – Boeing is back in the running again.
Here’s the article:
The US government has reopened a $35bn (£17bn) contract to supply the US Air Force with refuelling tankers, which had been given to European group EADS.
It said mistakes had been made when the original bids were evaluated.
US plane maker Boeing will get the opportunity to rebid after losing out to the European aerospace consortium.
The Air Force’s decision to award the valuable contract to EADS and its partner Northrop Grumman has been controversial in the United States.
Boeing had emphasised its home-grown credentials during the competition for the contract, urging the Air Force to “Buy American”.
Its rival’s air tankers would be assembled in the US using components largely made in Europe.
When the decision went against Boeing, the company and a number of US senators campaigned to get the tender process reopened.
The US Government Accountability Office (GAO) reassessed the Air Force’s decision and last month said “significant errors” had been made, including the evaluation of which of the two proposals was cheapest.
The initial evaluation had suggested that the Northrop Grumman bid would probably work out cheaper over the life of the deal. But when reexamined, Boeing looked to be the cheapest, the GAO said.
The deal – one of the biggest in the Air Force’s history – is the first of three contracts to supply up to 600 new refuelling tankers. The 30-year deal could be worth up to $100bn.
Northrup Grumman, who was awarded the contract along with EADS in February, said the “best tanker” had already been picked.
“We are reviewing the decision to ensure the re-competition will provide both companies a fair opportunity to present the strengths of their proposals,” the company said in a statement.
The Pentagon is expected to decide by the end of the year who will be awarded the contract. It has taken over responsibility for the process from the Air Force.