Boeing: We Have Serious Concerns

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Published: Mon, March 10, 2008 - 2:29 pm
Last Updated: Tue, March 11, 2008 - 9:56 pm
ST. LOUIS, March 10, 2008 -- As the deadline nears for a decision on whether to protest a U.S. Air Force contract award for the next refueling tanker aircraft, officials at Boeing spent the weekend evaluating with growing concern the information provided by the Air Force during a Friday debriefing.

"As we have gone through this process it has become clearer that this competition was much closer than has been reported, and that raises the stakes if the process was flawed and unfair in any way," said Mark McGraw, Boeing vice president and program manager for tanker programs. "We have serious concerns over inconsistency in requirements, cost factors and treatment of our commercial data."

As Boeing enters the final phase of its evaluation, the company is taking exception to reports that the Air Force had not received adequate commercial pricing data from the company. "It was clear from the Request for Proposals that the Air Force was seeking a commercial derivative tanker. However, by treating the Boeing offering as a military aircraft, the process by which the commercial cost/price data provided by Boeing Commercial Airplanes was evaluated has raised significant concerns," McGraw said. "We provided unprecedented insight into Boeing commercial cost/price data that had been developed over 50 years of building commercial aircraft. We believe this data was treated differently than our competitor's information.

"It is also important to note that the task of assembling and presenting this commercial data to the Air Force demonstrates the value of cooperation on this program within one company," McGraw added. "This is in sharp contrast to the higher risk involved in two companies from different countries and business cultures who have never worked together on a program of this size before."

Boeing is also responding to assertions that the company somehow misread Air Force requirements for the new tanker. "Our proposal was based on the stated criteria in the Air Force's Request for Proposal, with a specific focus on providing operational tanker capability at low risk and the lowest total life cycle cost," McGraw said. "We stand by our offering and believe that it did, and continues to, best meet the requirements.

"We take a protest very seriously," McGraw said. "For decades, Boeing has been recognized as a defense company that never takes lightly protests of our customers' decisions. We are following a very rigorous and deliberative process to ensure that we are comfortable that the evaluation was fair, and that ultimately it resulted in the tanker that is best suited to meet the needs of the warfighter."

ulriche, I spent 4-5 years in Everett on the 767’s, they can build them very fast, Boeing also won a project called CSAR worth about a billion or so, but that was challenged by Sikorsky and another company because of the way the air force handled the contract. Boeing tried to use a version of the Chinook. Now the companies are re-bidding for the contract. These jobs will be in the Northeast. There is a little more involved in building military craft due to EMI and incoming fire. More redundancy and back-ups. I loved working for Boeing, I just would like to show the world we can build planes in Mobile also. The job loss thing is a bunch of crap. This is just a p-ssing contest.

Posted by atbman on 03/12/08 - 3:11 pm • Report Abuse   

ulriche - We build ships in this area and we do a very good job of it!  With Alabama, NG will get a workforce with a devotion unlike what can be found in any other location!

Posted by BamaBob on 03/12/08 - 2:34 pm • Report Abuse   

Boeing and its paid political henchmen are resisting the idea of a competitive force being developed in the southeastern corner of the nation.  The advent of a true competitor in this country would begin to level the playing field and Boeing fears the potential competition!

Posted by asda on 03/12/08 - 2:03 pm • Report Abuse   

I would expect nothing less from a Boeing guy.  Even when a decision is made Boeing will still complain.

Posted by asda on 03/12/08 - 1:59 pm • Report Abuse   

asda, I promise you I will comment when the decision is handed down.

Posted by ulriche on 03/12/08 - 1:55 pm • Report Abuse   

ulriche --Boeing is not going to win their Appeal.  I don’t know why you are still trying to sell Boeing.  They lost get over it.  The only people in Congress complaining are the ones that have Boeing plants in their area.  That is because they are afraid that Boeing is going to cut off the kickbacks.  I want to see you commment after they reject the appeal.

Posted by asda on 03/12/08 - 1:51 pm • Report Abuse   

BamaBob, not just the 787, try 737, 777--200, 777-300, 747, the new 747-freighter and the 777 freighter.

Oh and ASDA if I need to remind you about how many aircraft Boeing can build and a month you have must not have much knowledge about aviation. Boeing has 6 lines in the world’s largest building. It can put out up to 7(777) s a month of different customer variations. The Tanker would be easier; it is a cookie cutter build they are all the same with limited interior work (military aircraft). Now I know what I am dealing with here and why EADS and Northrop when they start hiring, 90% of the people they hire will come out of state anyway. Probably Wichita, I would expect.  So no worries Boeing Can build the plane on time and on schedule.

Posted by ulriche on 03/12/08 - 1:37 pm • Report Abuse   

asds, yes 14 tankers, I thought that’s what we were talking and your other point is dead on Airbus starting making Tankers and 1994 and they flew it for the first time in late 2005, early 2006.  Boeing been building tankers for 75 years.

Posted by ulriche on 03/12/08 - 1:15 pm • Report Abuse   

Boeing does have a healthy backorder for the Dreamliner, which is outsourced at a rate of 65%.

Posted by BamaBob on 03/12/08 - 11:27 am • Report Abuse   

ulriche
I don’t think having 14 Boeing planes out of the over 800 planes is that many especially when you read the fact that they were put into service in 1985.  Airbus did not even start making their planes until 1994.  So that means they were not even an opition to purchase at the time.  Just like a Boeing support change the facts to make them say what you want.

Posted by asda on 03/12/08 - 11:14 am • Report Abuse   


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