March 4, 2011

Comment Regarding Decision by EADS not to protest U.S. Air Force Tanker Contract

“I am encouraged by the announcement today from the European Aeronautic Defence and Space Company (EADS) that it will not seek to prolong the Air Force’s procurement of Boeing KC-46A tankers by protesting the decision made last week.   This clears the way for the tanker acquisition process to move forward rapidly so that we can begin the replacement of the Eisenhower-era KC-135 tankers. 

“It is clear that the competition was fair and objective: Boeing won by offering a more fuel-efficient tanker at a more reasonable price.  The Pentagon wins and the skilled workers at Boeing win.   This contract will support more than 11,000 direct jobs at Everett and tens of thousands in the Puget Sound area over the next decade, and it will keep the 767 airframe production line open to allow for future sales. 

“One of the most significant factors in the Pentagon’s decision was the analysis of the cost of fuel that would be consumed over the life of the tankers.   The Boeing 767 consumes 24 percent less fuel than the larger Airbus 330, and in this latest competition I was able to include a more-realistic 40-year life-cycle analysis that demonstrated to the Pentagon the millions of dollars that can be saved using a 767 tanker.  The previous competition, overturned by the Government Accountability Office because of serious flaws in the procurement process, only included a 25-year analysis of fuel costs while tankers were expected to remain in the fleet for 40 years and beyond. 

“After working to modernize our tanker fleet for the past 10 years, I am extremely proud of the efforts that Boeing made to pursue this contract so aggressively and extremely proud of the company’s workforce that has built the world’s finest aircraft for commercial customers and for the Department of Defense."

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