TANKER USAF - Appels d'offres

Boeing has a plan to meet the aerial refueling tanker [Vous devez être inscrit et connecté pour voir ce lien] flow-rate requirement in the Air Force's draft tanker request for proposals, a company executive [Vous devez être inscrit et connecté pour voir ce lien] last week.
The boom Boeing developed for Japan can offload 900 gallons per minute, but the draft request requires 1,200 gallons per minute, Aviation Week said.
"(W)e have come up with a way to meet the requirement," Dennis Muilenburg, president and chief executive of Boeing Integrated Defense Systems, told Aviation Week.
EADS says the boom for a competing Northrop-EADS tanker can meet the requirement.

The Air Force's quest to replace its aerial refueling [Vous devez être inscrit et connecté pour voir ce lien] never really has been a "competition," an analyst [Vous devez être inscrit et connecté pour voir ce lien] Tuesday.
"(I)t's something of a misnomer to have ever called the tanker contest a 'competition,'" wrote Gary Schmitt, director of the program on advanced strategic studies at the American Enterprise Institute. "From day one, what DoD and the Air Force were dealing with were bids that looked more like apples and oranges than different kinds of apples."
The problem lies with the two tankers on offer: a Boeing plane based on its 767 and a Northrop Grumman-EADS aircraft based on the Airbus A330, Schmitt noted. "These are not comparable planes, with the 330 being considerably larger than the 767. Designing a 'competition' between the two, as mandated by Congress, was a virtual impossibility from the get-go and, hence, why every time an RfP has been put forward it has been seen (and rightly so) as inherently favoring one plane over the other."
In other words, once the Air Force decided what capabilities wanted, it basically decided which tanker would win.
"(D)esigning a competition where the primary virtues of both could be equally assessed was an impossibility -- a circle that could not be squared," Schmitt wrote.
I think it is possible to design a competition that essentially evaluates which aircraft does the best job of being the kind of tanker it is -- whether the apple is a better apple than the orange is an orange. But that would be putting the quest for a competition above deciding what the Air Force really needs.
Last week, Northrop Grumman officials [Vous devez être inscrit et connecté pour voir ce lien] they wouldn't bid on the contract unless the Air Force changed the latest criteria, which they see as favoring Boeing's tanker.
Northrop's best hope probably would be for getting Congress to force the Air Force to split the purchase between the two tankers, Schmitt said. "However, given the budget problems facing the service, and the stronger lobbying position of Boeing within the Congress among the majority party, this seems like a long shot at best."

The Air Force's draft aerial refueling [Vous devez être inscrit et connecté pour voir ce lien] request for proposals undervalues how much a plane that uses less fuel will save taxpayers over its lifetime, a Boeing official [Vous devez être inscrit et connecté pour voir ce lien] Thursday.
Specifically, Boeing tanker spokesman Bill Barksdale noted on Boeing's tanker blog that the draft request estimates fuel price increases of 11 percent, 7 percent and 4.5 percent over the next three years, but then only approximately 2.5 percent a year through 2060 and 0 percent from 2061 through 2079.
That's important because the request would adjust bidders' tanker prices by the net present value of lifetime fuel costs, Barksdale noted. What he didn't note was that Boeing's smaller 767-based tanker uses less fuel per flight than the larger plane on offer by a competing team of Northrop Grumman and EADS.
The Air Force assessment is well below many others, including Department of Energy trend data showing jet fuel prices have jumped by an average of about 7.8 percent a year over the past four decades, Barksdale wrote. "Common sense suggests that fuel price inflation and escalation for a fossil fuel in limited global supply will only become worse over the next 40-plus years, not better."
He concluded by saying: "Boeing is only asking for a fair, transparent competition with a level playing field where fuel costs and fuel burned are accurately portrayed and measured in the Fuel Burn Adjustment model in the final Request for Proposal."
Northrop spokesman Randy Belote responded to Barksdale's comments by saying:

It is a fact that the A330-based tanker burns slightly more fuel than a Boeing 767. However, it is a well-established fact that Northrop Grumman's tanker is more efficient in the amount of fuel it delivers as a result of the amount of fuel burned to deliver the fuel.
Unlike the previous competition, the current draft RFP places no value on that fuel-burn-to-fuel-delivery efficiency model which is one of the major issues Northrop Grumman has with the draft RFP.
Boeing appears to be arguing that the draft RFP should require a "straight-line" cost increase estimate in the price of jet fuel so that they are given additional credit for their fuel calculation. What is curious is why anyone would attempt to predict the price of jet fuel 70 years into the future.

The Air Force's aerial refueling [Vous devez être inscrit et connecté pour voir ce lien] contract is "critical" to EADS' U.S. business, the new head of EADS North America told reporters Friday.
But the Northrop Grumman-EADS tanker team's pledge not to bid on the contract unless the Air Force changes its draft criteria is not a negotiating ploy, EADS North America Chief Executive Sean O'Keefe said at a media briefing, according to [Vous devez être inscrit et connecté pour voir ce lien] and [Vous devez être inscrit et connecté pour voir ce lien].
Concerns from both Northrop-EADS and Boeing have led Pentagon officials to push back release of a final request for proposals from Dec. 18 to the middle of January, O'Keefe told reporters.
The importance of the contract comes as part of an EADS push for aggressive and fast growth in the U.S. military market, The Hill reported. The Northrop-EADS tanker assembly plant, in Mobile, Ala., also would be able to churn out Airbus A330 aircraft for the commercial market, but won't get built without the tanker contract.
Northrop officials have said they won't bid on the tanker request as written because it favors rival Boeing's smaller 767-based offering. EADS backs that stand, O'Keefe said, according to the media accounts.
Some other accounts have speculated that Northrop's threat is a negotiating ploy. Pentagon officials revised their previous tanker request in response to Northrop complaints, but have so far stood firm this time.
Northrop won the previous contract, but the Pentagon threw out that result after congressional auditors found serious flaws in the process

WASHINGTON, 11 décembre (Reuters) - EADS a réaffirmé vendredi son intention de boycotter, faute de modification importante dans la procédure, l'appel d'offres de 50 milliards de dollars (34 milliards d'euros) prévu par le Pentagone pour renouveler sa flotte d'avions ravitailleurs.
EADS s'était associé à l'américain Northrop Grumman pour affronter Boeing sur ce marché portant sur 179 avions. Mais Northrop a annoncé le 1er décembre son retrait du dossier en arguant du fait que le projet d'appel d'offres (RFP) favorisait Boeing. EADS a alors approuvé sa décision.
"Il ne s'agit pas d'une manoeuvre de négociation", a déclaré vendredi à des journalistes Sean O'Keefe, le directeur général d'EADS pour l'Amérique du Nord.
Le directeur général de Northrop, Ron Sugar, a démenti que son groupe cherche à imposer ses conditions à l'armée de l'air américaine, ce qu'affirment certains partisans de Boeing, mais il a ajouté que la détermination du tandem formé avec EADS ne devait pas être sous-estimée.
"Que personne ne s'y trompe: nous ne pouvons pas faire d'offre sur la base du RFP actuel", a-t-il dit à Reuters lors d'un entretien téléphonique.
Il s'est refusé à prédire si le Pentagone apporterait au projet d'appel d'offres des modifications suffisantes pour permettre à Northrop et EADS de présenter finalement leur proposition.
Lors des précédents appels d'offres, annulés après des recours, le tandem Northrop-EADS avait proposé un appareil dérivé de l'Airbus A330-200 du groupe européen.
Le contrat est censé être attribué d'ici la fin du mois de juin.
Les candidats éventuels ont eu cette semaine des discussions avec des représentants de l'administration sur d'éventuelles modification au projet de cahier des charges dévoilé en septembre.
"Nous sommes réconfortés" par les discussions, a dit Sean O'Keefe. "Nous n'aurions pas pu souhaiter une réponse plus attentive et plus constructive."
Il a ajouté que l'administration semblait se fixer pour objectif la publication d'une version définitive du cahier des charges à la mi-janvier.
William Barksdale, porte-parole de Boeing, a déclaré de son côté que les discussions avec les représentants de l'armée de l'air avait permis aux représentants du groupe "d'exprimer à la fois des observations et des inquiétudes" sur la procédure.
Northrop et EADS avaient remporté en février 2008 le contrat de construction de 179 ravitailleurs pour l'US Air Force mais celui-ci avait été annulé après un recours de Boeing sur les critères d'évaluation des offres.
Les nouveaux avions sont censés remplacer la flotte de KC-135 de l'Air Force, dont l'âge moyen avoisine 50 ans. Les premières livraisons sont prévues pour 2015.

Northrop CEO objects to fixed-price tanker contract
Perhaps the only point of agreement between Boeing and Northrop Grumman officials regarding the Air Force's draft aerial refueling [Vous devez être inscrit et connecté pour voir ce lien] request for proposals is that the plan to use a fixed-price contract is unfair.
Northrop Grumman Chief Executive Ron Sugar put more meat on the objection Friday, [Vous devez être inscrit et connecté pour voir ce lien] that such contracts should wait until a system is finalized and in production, because of risks inherent in development.
"The inappropriate contract type at the wrong point in the contract can create a lose-lose situation," Sugar told Reuters.
The fixed-price provisions are part of why Northrop officials [Vous devez être inscrit et connecté pour voir ce lien] they won't bid on the draft request as written. Their other main objection is that the request favors Boeing's smaller 767-based tanker over their Airbus A330-based offering.

Congress and the Pentagon must jointly tackle cost overruns and schedule delays in weapons procurement because simply imposing punitive contract terms is not the right answer, [Vous devez être inscrit et connecté pour voir ce lien] ( [Vous devez être inscrit et connecté pour voir ce lien] - [Vous devez être inscrit et connecté pour voir ce lien]- [Vous devez être inscrit et connecté pour voir ce lien]) Chief Executive Ron Sugar told Reuters Friday.
Sugar said he was particularly concerned about the Pentagon's move to use fixed-price type contracts for development of new weapons, saying such contracts were better once a weapon was finalized and in production.
"The inappropriate contract type at the wrong point in the contract can create a lose-lose situation," Sugar said in a telephone interview ahead of the Reuters Aerospace and Defense Summit in Washington next week.

Northrop told the Pentagon earlier this month it would not bid against [Vous devez être inscrit et connecté pour voir ce lien] ( [Vous devez être inscrit et connecté pour voir ce lien] - [Vous devez être inscrit et connecté pour voir ce lien]- [Vous devez être inscrit et connecté pour voir ce lien]) Co to build new refueling aircraft, barring significant changes in draft terms for the competition, which also called for a fixed-price development contract.
The defense industry, military planners and Congressional lawmakers eager to protect local jobs share some of the blame for existing problems in Pentagon procurement, he said. But cost overruns and schedule delays result from a complex set of factors.
Some of Northrop's best contracts had fixed-price terms, but they were for weapons already in production, Sugar said.
For example, the Navy successfully used fixed-price contracts to buy F/A-18 fighters built by Boeing Co. Northrop is a key subcontractor on that program.
But applying strict, fixed-price terms to development programs was not a good idea because of unanticipated issues that can arise while new technologies are being tested, he said.
In at least two cases -- the A12 combat aircraft and the Tri-Service Standoff Attack Missile (TSSAM) -- the programs were ultimately abandoned, Sugar said. The C-17 transport plane built by Boeing also saw major cost increases, despite the fixed price terms of its development contract.
Sugar, who retires at the end of the year, said the industry was experiencing more "headwinds" than in recent years and the significant growth of recent years was probably over.
"We're now looking at a time when resources for the (Pentagon's weapons) investment accounts are going to be challenged," Sugar said, although he stopped short of predicting declines in defense spending.
Still, he said the big challenge for the [Vous devez être inscrit et connecté pour voir ce lien] in coming years would be to adequately fund the ongoing wars in Iraq and Afghanistan, while continuing to invest in new technologies and future weapons.
At the same time, weapons makers would have to focus on delivering weapons on time and on budget, while providing adequate returns on investment for shareholders.
He cautioned against subjecting contractors to highly punitive procurement measures as a reaction to cost overruns on some programs. Such a short term pendulum swing could have negative consequences for the overall economy and employment in the sector, he said.
Moreover, shareholders would not allow companies to accept undue amounts of risk.
"People in industry have to be able to demonstrate an acceptable return on investments," he added.

Il est peu probable que le Pentagone modifie sensiblement son cahier des charges pour une flotte d'avions de ravitaillement en vol, en dépit des objections soulevées par Northrop Grumman et EADS, a déclaré lundi le secrétaire à l'Air Force Michael Donley.
Northrop et EADS ont fait savoir ce mois-ci qu'ils ne participeraient plus à l'appel d'offres pour un contrat de tankers de $50 milliards si ses conditions qui, affirment-ils, favorisent son concurrent Boeing, n'étaient pas modifiées en profondeur.
"Le cahier des charges est très solide", a dit Michael Donley lors du sommet annuel Reuters de l'Aéronautique, de l'Espace et de la Défense. "Je n'anticipe aucun changement majeur dans ce domaine".
L'équipe Northrop/EADS avait remporté ce contrat de 179 tankers en février 2008 mais l'appel d'offres a été relancé à la suite des protestations de Boeing.

Will Pentagon make tanker changes for Northrop?
Top Pentagon leaders told Alabama lawmakers on Wednesday they would evaluate concerns that have been raised regarding its draft aerial refueling [Vous devez être inscrit et connecté pour voir ce lien] request for proposals, according to [Vous devez être inscrit et connecté pour voir ce lien].
"They said it's not true their mind is made up ... they will make changes as appropriate," Sen. Jeff Sessions, R-Ala., told Reuters after he and other Alabama lawmakers met with Deputy Defense Secretary William Lynn and Pentagon acquisition chief Ashton Carter.
Lynn told Reuters after the meeting that the Defense Department was evaluating comments from the companies and lawmakers, but declined to detail possible changes for the final request, due out in January.
Northrop officials [Vous devez être inscrit et connecté pour voir ce lien] earlier this month that they would not bid on the request as currently written because they feel it favors Boeing's smaller 767-based tanker over its Airbus A330-based offering.
While Sessions played up the Pentagon statements as progress, from his perspective, Pentagon officials have said all along that they would take comments into consideration. The Pentagon responded to Northrop concerns by changing criteria in the previous attempt to award the tanker contract, but appear more steadfast this time in sticking with the basic thrust of the request. I would expect changes to focus on finer details.
Alabama lawmakers care because Northrop would assemble its tanker in Mobile, Ala. Some Alabama of them want the government to split the order between the two teams, but Lynn said Pentagon officials were not considering that.

, maison mère d'Airbus, reste intéressé par des acquisitions de petites et moyennes capitalisations aux Etats-Unis quelque soit l'issue de l'appel d'offres lancé par l'US Air Force sur les avions ravitailleurs, a déclaré mercredi un haut dirigeant de l'avionneur européen.
Le directeur des activités nord-américaines d'EADS Sean O'Keefe avait salué plus tôt une déclaration du Pentagone qui assurait qu'il apporterait des retouches appropriées à l'appel d'offres sur le renouvellement de la flotte d'avions ravitailleurs pour lequel il est en compétition avec Boeing.
EADS et son partenaire américain Northrop Grumman avaient fait savoir il y a quelques semaines qu'ils ne participeraient pas à cet appel d'offres si ses termes restaient en l'état.
"Nous verrons ce qui se passe", a dit Sean O'Keefe mercredi.
Il a ensuite dit qu'EADS restait intéressé par des acquisitions aux Etats-Unis et que de telles opérations se feraient quelque soit l'issue de l'appel d'offres.

Northrop Grumman KC-45 partner EADS North America showed new video of the Airbus A330 Multi-Role Tanker Transport (MRTT) during a press conference last week. They kindly provided me the video. Now we can decide: which potential KC-X bidder has released the better B-roll? (And, of course, should this be factored into the US Air Force's evaluation of the 373 mandatory requirements, or 94 nice-to-haves?)

WASHINGTON, 18 décembre (Reuters) - Le secrétaire adjoint à la Défense, William Lynn, a annoncé jeudi devant les élus américains que le Pentagone ne devrait apporter que des modifications mineures aux termes de l'appel d'offres deportant sur le renouvellement de la flotte américaines d'avions ravitailleurs, a déclaré Todd Tiahrt, élu Républicain du Kansas.
Au lendemain d'une réunion avec les élus de l'Etat de l'Alabama qui soutiennent la proposition de Northrop Grumman Corp et de son partenaire européen EADS , Willian Lynn a rencontré les soutiens de Boeing sur le projet, Todd Tiahrt et Norm Dicks, élu démocrate de l'Etat de Washington.
L'appel d'offres est valorisé autour de 50 milliards de dollars (34,75 milliards d'euros)
Tandis que Boeing a prévu de construire ses appareils dans l'Etat de Washington et de réaliser leurs modifications militaires dans le Kansas, Northrop et EADS envisagent de produire leurs avions ravitailleurs dans l'Alabama.
"Les modifications ne seront pas importantes", a indiqué Todd Tiahrt à reuters après sa rencontre avec William Lynn. Il a ajouté que le secrétaire d'Etat adjoint avait suggéré que le Pentagone pourrait ajuster ses prévisions de coûts de carburant dans son dossier d'appel d'offres, et pourrait prolonger de 20 à 40 ans la période de garantie des coûts de production des appareils durant toute leur durée de vie.
Mercredi, William Lynn avait annoncé à Reuters que le Pentagone examinait les propositions des entreprises et des élus avant de lancer un appel d'offres modifié le mois prochain.
Todd Tiahrt a en outre prévenu qu'avec Norm Dicks, ils presseraient le Pentagone de tenir compte du jugement rendu par l'Organisation Mondiale du Commerce (OMC) sur des aides publiques européennes versées à Airbus et qualifiées d'illégales. [ID:nL4104498]
Mercredi, EADS, la maison mère d'Airbus, a salué les propos du Pentagone qui avait assuré qu'il apporterait des retouches appropriées à l'appel d'offres. [ID:nLDE5BF2H6] et [ID:nGEE5BA2DE]
Northrop et EADS avaient remporté en février 2008 le contrat de construction de 179 ravitailleurs pour l'US Air Force mais celui-ci avait été annulé après un recours de Boeing sur les critères d'évaluation des offres.

day after a meeting with defense officials gave supporters of a Northrop Grumman-EADS aerial refueling tanker hope that the Pentagon might revise the draft [Vous devez être inscrit et connecté pour voir ce lien] proposal, Boeing backers report that changes will be minor.
Northrop, EADS and its political allies say the draft request favors Boeing's smaller 767-based tanker over the Northrop-EADS Airbus A330-based offering. On Wednesday, Sen. Jeff Sessions, R-Ala., [Vous devez être inscrit et connecté pour voir ce lien] that Deputy Defense Secretary William Lynn and Pentagon acquisition chief Ashton Carter pledged in a meeting with him and after other Alabama lawmakers to revise the request.
But, on Thursday, Lynn reportedly told U.S. Reps. Todd Tiahrt, R-Kan., and Norm Dicks, D-Wash., that revisions would be minor.
"The changes are not going to be huge," Tiahrt [Vous devez être inscrit et connecté pour voir ce lien] after the meeting. Boeing plans to build its aircraft in Washington state, with military modifications in Kansas.
Lynn suggested the Pentagon could adjust the projected fuel cost assumptions and may extend the period covered under life cycle costs from 20 to 40 years, Reuters reported. The first change could help Boeing, whose officials have [Vous devez être inscrit et connecté pour voir ce lien] that the draft request underestimates fuel costs, giving less of an edge to the 767-based tanker, which uses less fuel than its larger rival.
Tiahrt told Reuters that he and Dicks continue to push the Pentagon to penalize a Northrop-EADS bid based on a preliminary World Trade Organization ruling that European governments illegally [Vous devez être inscrit et connecté pour voir ce lien] Airbus aircraft, including the A330. Pentagon officials have said they wouldn't do so because the ruling isn't final and can be appealed, and because a European counterclaim is pending.

[Vous devez être inscrit et connecté pour voir ce lien] has praised 125 US lawmakers for signing a letter urging the US government to take action after the World Trade Organization (WTO) releases an "imminent" final ruling against [Vous devez être inscrit et connecté pour voir ce lien].
The brief letter, spearheaded by Representatives Todd Tiahrt, of Kansas, and Norm Dicks, of Washington, was sent to President Barack Obama.
"Our policies should not reward foreign governments or companies that benefited from illegal subsidies," the letter says. "When the WTO's final ruling in this matter confirms U.S. claims that Airbus products were illegally subsidized, we will be committed to ensuring this principle is upheld."
In a separate news release, Boeing said the WTO decision could be reached soon. An interim ruling on 4 September reportedly found that Airbus accepted illegal subsidies to launch the [Vous devez être inscrit et connecté pour voir ce lien].
Boeing's statement warned that Airbus wants to use the same practices to finance the [Vous devez être inscrit et connecté pour voir ce lien].
"We look forward to working with Congress to ensure this matter of principle and of important policy is enforced," Boeing says.
The European Union is waiting for an interim ruling from the WTO in a case that accuses of Boeing of accepting illegal subsidies from the US government.

Analyst: Boeing will offer "launch customer" tanker pricing

A change in Boeing leadership means the company offer lower prices in its next U.S. Air Force aerial refueling [Vous devez être inscrit et connecté pour voir ce lien] bid than it did in the previous competition, analyst Scott Hamilton [Vous devez être inscrit et connecté pour voir ce lien] Friday.

Scott Carson, who led Boeing Commercial Aircraft during the previous competition, has since been replaced by Jim Albaugh, the former head Boeing Integrated Defense Systems.

Carson "blocked what was described to us as 'launch customer pricing' for the KC-767" tanker in the previous competition, Hamilton wrote. "It must be remembered that the 767 production line was presumably fully amortized long ago and that there had to be a lot of room in cost and price. But Carson wouldn't budge on price."

Price is more important this time than it was in the previous round because the draft tanker request for proposals would award the contract to the lowest-priced adjusted bid that meets mandatory criteria, assuming the difference is more than one percent, rather than the best combination of price and capabilities.

One of Albaugh's priorities these days is winning the tanker contract, Hamilton added. "We doubt that he will hesitate to price the KC-767 for a launch customer."

USA: des élus appellent à écarter Airbus du contrat des ravitailleurs

WASHINGTON, 18 déc 2009 (AFP)Des élus du Congrès américain ont appelé vendredi à écarter Airbus du contrat des avions ravitailleurs passé par le Pentagone, arguant que l'Union européenne a été condamnée devant l'Organisation mondiale du commerce (OMC) pour des subventions accordées à l'avionneur.

2009 AFP

[Vous devez être inscrit et connecté pour voir ce lien] has praised 125 US lawmakers for signing a letter urging the US government to take action after the World Trade Organization (WTO) releases an "imminent" final ruling against [Vous devez être inscrit et connecté pour voir ce lien].

The brief letter, spearheaded by Representatives Todd Tiahrt, of Kansas, and Norm Dicks, of Washington, was sent to President Barack Obama.
"Our policies should not reward foreign governments or companies that benefited from illegal subsidies," the letter says. "When the WTO's final ruling in this matter confirms U.S. claims that Airbus products were illegally subsidized, we will be committed to ensuring this principle is upheld."
In a separate news release, Boeing said the WTO decision could be reached soon. An interim ruling on 4 September reportedly found that Airbus accepted illegal subsidies to launch the [Vous devez être inscrit et connecté pour voir ce lien].
Boeing's statement warned that Airbus wants to use the same practices to finance the [Vous devez être inscrit et connecté pour voir ce lien].
"We look forward to working with Congress to ensure this matter of principle and of important policy is enforced," Boeing says.

The European Union is waiting for an interim ruling from the WTO in a case that accuses of Boeing of accepting illegal subsidies from the US government.

Airbus fears a six-month delay in a crucial World Trade Organisation report on Boeing, its US rival, could harm the European aircraft maker’s chances of winning a multi-billion-dollar Pentagon contract.
The delay is inflaming tensions between the groups, whose governments have been locked in a dispute in the WTO over allegations of subsidies.
This stinks to high heaven,” said an Airbus employee after hearing last week that the WTO did not plan to release its interim report until June 2010 on Brussels’ claims that the US had granted Boeing “massive subsidies”.
Washington and Brussels accused one another of subsidising their respective aircraft makers illegally in October 2004, with each case being handled by a separate WTO panel.

To start 2010, I put on my economic adviser/political strategist hat in service of the leader of the free world.
My first, and perhaps only, advice for the president this year is to make a grand compromise, split the difference, accept the second best choice.

I refer not to health care reform, tax cuts or financial regulation.
The compromise Obama should seek involves our nation's military-industrial complex.

In short, the president should direct Secretary of Defense Bill Gates to split the Air Force's $35 billion aerial refueling tanker contract between Boeing Co. and Northrop Grumman Corp.

The Air Force is on its third attempt over the past few years to replace 179 aging refueling planes.
The first try was marred by a bribery scandal that saw Boeing's tanker contract pulled.
The second attempt failed because of errors in the selection process that were revealed after Boeing protested the decision to award the contract to Northrop -- and its European partner EADS.

No matter which side wins, the nation, including Southern California and the South Bay, would see the creation of thousands of new jobs.

Yet, the Obama administration is under enormous pressure from various members of Congress, who are pushing for either Boeing or Northrop, depending on which congressional district would receive the most jobs.

Here's why it's time for the tanker contest to end with two winners:

-- The new tankers would finally get built without further delay.
-- Boeing, Northrop and their respective allies in Congress would be unlikely to challenge the decision since an assured half contract is better than the mere chance of winning a full contract.
--------------
With the Congressional supporters of each side dug in so deeply, Obama should save his political capital for other matters, like boosting the economy. This is especially so after the brutal health- care battle.

Obama could use the promise of a split contract to extract commitments from Congress for his other priorities. (Yeah, politics is that ugly.)

Obama can claim a victory by showing progress in creating jobs. And, let's face it, few Republicans will criticize the president for spreading the wealth around when it comes to military contracts. (Think F-22 and C-17.)

Allowing each side to build a separate aircraft would promote a diversified industrial base in our country.

Granted, splitting the tanker contract would sacrifice frugality by raising the cost of building the planes by billions of dollars.

But that may be a small price to pay.
For the tanker contest, there's never been a better time for compromise.
[Vous devez être inscrit et connecté pour voir ce lien]

Analyst: split tanker buy has advantages, political risks

Buying new aerial refueling [Vous devez être inscrit et connecté pour voir ce lien] from both Boeing and Airbus would address some flaws in the Pentagon's draft tanker request and provide some other advantages, while also adding new risks, a defense consultant [Vous devez être inscrit et connecté pour voir ce lien] Thursday.
James Hasik [Vous devez être inscrit et connecté pour voir ce lien] the draft request to replace the Air Force's KC-135 tankers Sunday for, among other things, giving all requirements equal weight and carrying too long of a term (18 years). A split buy, by effectively rerunning a small competition every so often, would cut the risks of the long-term contract and allow it to adjust requirements as needs evolved, Hasik wrote Thursday.
A split buy also could buy off political opposition from supporters of the bidder that lost a winner-take-all competition; help keep prices lower by preventing one of the bidders from walking away from the contest (as the Northrop-EADS team has threatened to do, because it feels the draft request favors Boeing's smaller 767-based tanker); and reduce risks associated with potential defects in one tanker and changing requirements in future years, Hasik wrote.
But a split buy also brings risks, he added. "To begin, capitulating to transparent demands for patronage would make for stunningly bad public policy. If commercial and political interests in Washington State and Alabama could collude and conspire in this way, where would the line be drawn?"
Hasik said it could be easier for the Pentagon to fix the problems he sees with the draft request.
Failing that, a split buy could work, he said, adding: "If split procurement is indeed pursued, the political appeasement angle must be downplayed to guard against a recurrence of this decade-long procurement debacle. The government should think seriously before offering any guarantees of minimum quantities."
Finally, he noted that the Northrop-EADS tanker "could reasonably be favored" to win the contract to replace the Air Force's larger KC10 tankers, particularly if that contest were held soon, because its A330-based tanker exists, while Boeing has not yet developed its proposed larger 777-based tanker.

Commenter: Northrop-EADS tanker would boost trade balance
Having the U.S. Air Force buy aerial refueling [Vous devez être inscrit et connecté pour voir ce lien] from a Northrop Grumman-EADS team would boost the country's trade balance, a commenter asserted on Sunday.
The argument came in a (Mobile, Ala.) Press-Register [Vous devez être inscrit et connecté pour voir ce lien] by Michael Lee, president and chief executive of Mobile-based import-export company [Vous devez être inscrit et connecté pour voir ce lien] and chairman of the Alabama District Export Council. Northrop-EADS would assemble its tanker in Mobile.
Both tankers use parts from around the world, but Boeing's count as American and so contribute positively to the country's trade balance with any international sale, Lee noted.
So, having a Northrop-EADS tanker available for sale internationally could similarly aid the trade balance, he said. "Think about that plane coming from the United States, boosting our balance of payments and decreasing our country's trade deficit, no matter who buys one."
Northrop has no current plans to enter the international tanker market. But, if Northrop-EADS won the U.S. tanker contract, Airbus would build a plant in Mobile to assemble A330-200 aircraft, which are the basis for the Northrop-EADS KC-45 and EADS A330 MRTT tankers.
Lee also noted that Airbus would use its Mobile plant to build A330 transports and, quite possibly, passenger airliners.
"The gain on all these others will most likely be bigger than on the tanker itself," he wrote, adding, later: "We have a chance to capture a huge share of the world market in aircraft."
In fact, analyst Scott Hamilton has [Vous devez être inscrit et connecté pour voir ce lien] that the Mobile tanker plant would be Airbus' bridgehead for putting other programs there.