Both Companies Submit Final Proposals But Will Continuing Resolution Allow Award?

It has been confirmed that both Boeing (BA) and EADS North America (EADS:P) submitted their final proposals for the KC-X aerial tanker program. The Air Force had asked that they be submitted by today and both companies turned them in early.

One pressing question that remains is if the Department of Defense remains under Continuing Resolution (CR) for the rest of the year rather then Congress passing a proper budget is it possible to award the new contract? It looks like the Republican controlled House is planning on doing CR until the new Fiscal Year (FY) starts in October. There has not yet been any statement from the Government on this question.

One would think that even if the source selection is carried out and a winner chosen with the caveat that the contract award would have to wait until the next FY it might affect the pricing. Having a requirement to guarantee the pricing for several months has not been identified yet and it would have some effect on each company’s bids.

As everything with this program nothing is easy and it seems this third attempt may be even more complex and controversial than the first two.

Comments (1)

Article at Washingtonian Magazine

The Washingtonian Magazine has written a good history of the KC-X aerial tanker program. It may be found here.

It is timely to look back at what got the program to this state as we wait for the next contract award announcement in the next few months.

Leave a Comment

Antonov Team Request Delay in Proposal Deadline

As reported last week U.S. Aerospace and Antonov intend to submit a proposal to the Air Force for the KC-X aerial tanker. Because the actual proposals are due this week supposedly the new team will ask for a sixty day delay to accommodate them. The deadline has already been moved once from June to July to allow EADS (EADS:P) and its team to bid.

The current schedule is for a contract award in November and this new extension would probably push that into 2011 due to the time it will take to evaluate a third bid. U.S. Aerospace did say that they will submit this week if no extension is granted.

A third proposal will make the contest more interesting especially as the Antonov will be very price competitive.

Comments (1)

Air Force Adjusts KC-X RFP To Reflect Start Date In November

The Air Force had previously announced that they would delay the proposal submission date for the KC-X tanker contract sixty days into July. Now they have updated the Request for Proposals (RFP) to reflect a contract “start” date of November 12th. The original RFP had called for a contract award date on August 29th. This 75 day slip to the start date may mean an earlier award date but it seems to mirror the decision to delay the proposal submission date.

Comments (4)

Now Reports That EADS May Bid After All

There is a rumor that the Pentagon may delay the deadline for submission of a proposal for the KC-X to accommodate either a solo bid or another partnership. This contradicts what was reported yesterday that EADS-NA CEO Sean O’Keefe said the company wouldn’t bid without Northrop Grumman (NOC). It will be seriously difficult for the company to bid by itself. It would need to find another U.S. company to work with.

This might be second thoughts by DoD as they realize how difficult doing a single bid contract award will be. This is not a sole source contract but right now it would only receive one qualified offer.

Leave a Comment

KC-X RFP Questions And Answers Continue

The U.S. Air Force put out a draft Request for Proposal (RFP) in late September. It has proceeded apace with the receipt of questions related to the RFP and putting out answers. The idea is that the type of questions received should help write the final RFP to make it better and get better proposals.

The Seattle Post-Intelligencer reports that so far two sets of answers have been put out and they already run to several pages. Considering that it is expected only the same two teams will bid it indicates the new RFP is significantly different.

This will be a long, hard slog of a contract award again.

Leave a Comment