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Saturday, March 20, 2010

OK, The Weird Have Turned Pro: Tanker Tango Edition


Yes, the Russkys are Proposing a 4 Engine Tanker
So, the Northrop-Grumman/EADS team has bowed out, and EADS CEO Louis Gallois has said that it is impossible for them to make a solo bid by the May 10 deadline.

This is not surprising, they would have to develop a plan to establish a manufacturing facility, reconfirm and/or create arrangements with suppliers, etc.

Well, the Pentagon understands that, and is willing to extend the deadline to allow for a bid from EADS:
The Department has received notification from EADS North America indicating possible interest in competing for the Air Force's KC-X Tanker and we would welcome that. Consistent with our commitment to conduct a fair and open competition, the Department invites proposals from all qualified contractors and, if necessary, we would consider a reasonable extension to the RFP deadline. That is not unusual. In fact, a few recent examples include BAMS, VH-71, Small Diameter Bomb (SDB) II, LOGCAP IV, LCS, LPD-17 Repair Services, and FMTV.
So, it sounds to me like the USAF really wants to light a fire under Boeing with the prospect of some competition, because otherwise they know that the tanker will be both expensive and late without a the possibility of meaningful competition.

EADS has has not ruled out bidding if the deadline is extended (press release):
EADS will assess new situation on US Tanker Request for Proposal

Leiden, 19 March 2010

Yesterday the US Department of Defense (DoD) indicated it would welcome a proposal from EADS North America as prime contractor for the KC-X tanker competition. This is a significant development. EADS is assessing this new situation to determine if the company can feasibly submit a responsive proposal to the Department’s request for proposal (RFP).

And while this development is a positive sign that the DoD seeks competition, it does not address EADS’ underlying concerns that the RFP clearly favors a smaller, less capable aircraft, and that the additional combat capability offered by our system may not be fully valued.

An important prerequisite for our consideration of entry into this competition will be a significant extension to the period within which to prepare and submit a proposal. EADS welcomes the DoD’s recent statement which indicated a willingness to extend the timeframe. Though this is essential, it is only one factor in making a decision for EADS to compete. In the end, the company will only submit a proposal if there is a fair chance to win, after evaluating all relevant factors.

EADS is a global leader in aerospace, defence and related services. In 2009, the Group - comprising Airbus, Eurocopter, EADS Astrium and EADS Defence & Security – generated revenues of € 42.8 billion and employed a workforce of more than 119,000.
OK, I bet you have a question now, why did I say that this was weird?

After all, this appears pretty normal in the world of defense contractors angling for maximizing their chances at a Pentagon contract.

Well, the weird does not come from Boeing, nor does it come from EADS. Rather we are getting our dose of weird from the Russians, who are proposing that a modified version of their Ilyushin Il-98, called the Il-98, for the competition.

While I can see the aircraft being cheaper, low cost is what Russian aerospace has as its chief asset, I cannot see anyone going with a 4 engine aircraft, the operational costs would be higher.

Furthermore, were a Russian aircraft to get the contract, it would have the effect of reinforcing a world-wide spares and maintenance infrastructure for Russian civil aircraft generally, which would be bad for both EADS and Boeing, since this would make Russian aircraft far more competitive.

My guess is that this announcement involves a sick sense of humor and a bit of Vodka.

Or, perhaps they are trying to get a payment from Boeing not to bid.

(on edit)
My bad, the Russians will be offering a 2 engine based on the Il-96 to create the Il-98, so the economics might not be quite so bad, and given its Soviet origins, it may very well be able to operate off of less robust airfields, since Soviet designs typically have more/larger tires, and so lower ground pressure.

Still, this is just freaky.

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