U.S. Air Force, Boeing Sign KC-X Contract

• March 03, 2011
  
  

  By Amy Butler
  Aviation Week
  3/2/2011

  David Van Buren, the U.S. Air Force’s top acquisition executive, says that the contract with Boeing to develop the KC-46A aerial refueler has been signed, marking a major step in the Air Force’s decade-long pursuit of a KC-135 replacement.

  Boeing, which won the $3.5 billion contract after more than a year of competition since the Air Force released its KC-X request for proposals, declined to say whether work has begun. The Air Force on Feb. 24 announced that the company’s 767-based KC-46A won over EADS North America’s A330-based option (Aerospace DAILY, Feb. 25).

  Van Buren declined to identify why Boeing won the deal, noting only that the company did undercut EADS in its price by more than 1%; the government adjusted the prices of the bids based on military construction needs, fuel burn and each aircraft’s performance in an operational modeling tool. Those prices have not been released by the government.

  EADS has until March 7 to protest the decision if the company finds a procurement misstep by the Air Force in its source selection. However, Defense Secretary Robert Gates suggests a successful protest is unlikely. “We think that this was a very transparent, forthright process. Companies obviously have opportunities under the law to protest, but I think the view in this building is that there are no grounds for a valid protest,” he said during a March 1 press briefing at the Pentagon.

  Van Buren says that additional data on why Boeing won will not be released because it is proprietary.

  The decision came after years of missteps by the Air Force, starting with a highly overpriced lease deal for Boeing, then the 2008 announcement of a Northrop Grumman/EADS win, which was later dashed after procurement missteps came to light in a Government Accountability Office review.

  “I am very, very proud of the program office,” Van Buren told an audience at a Credit Suisse conference March 1 in Arlington, Va. “I am very, very proud of Gen. Bogden,” he added, referring to Brig. Gen. Christopher Bogden, the program executive officer overseeing the KC-X buy. “Both of the companies conducted themselves really, really [professionally] — even during the activities of this week.”

  Both companies received their source-selection debrefings Feb. 28; the briefing to EADS on why the Airbus design lost lasted about 90 min. If EADS protests, the Air Force will likely issue a stop-work order to Boeing while the protest claims are reviewed.

  The first KC-46A flight is expected in 2015, and the first 18 aircraft will be fielded by 2017.

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