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Second Round Of Bidding Opens For Tanker

By Steve Alexander Reporter

The Defense Department outlines what its looking for. Second Round Of Bidding Opens For Tanker

Published: Wed, August 06, 2008 - 8:23 pm Last Updated: Fri, August 15, 2008 - 11:19 am

Steve Alexander

The bell for round two rang Wednesday in the fight over Air Force tankers.
And this time, the U.S. Department of Defense is handling everything.
Director of Defense Procurement and Acquisitions Policy Shay Assad held a news conference to answer questions about the second round of bidding for the Air Force tanker contract.
He emphasized several times that Northrop-Grumman and Boeing should have no trouble understanding what the department wants in a tanker.
Assad said, "We've tried to be meticulous in insuring that the (companies) have a very clear and unambiguous understanding of the relative order of importance of our requirements."
Then, the Defense Department official took up the issue of value.
Assad said, "We will recognize value over threshold as it regards to fuel offload."
Is this good news for Mobile?
In reacting to the news conference, Northrop-Grumman spokesman Randy Belote told News Five that Northrop Grumman's KC-45 tanker is more effective and efficient in aerial refueling capability than Boeing's.
He said the KC-45 might cost more to fly from one point to another.
But Belote said since it's a larger plane, it can fly more fuel more efficiently in the long run.
Mobile Mayor Sam Jones said this round of judging should focus on the planes themselves instead of the bidding process.
Mayor Jones said, "Actually, our competitor Boeing has not built an aircraft yet. (It) has not built a tanker yet. So, they have a paper offering, we have an actual offering."
Department of Defense officials said they should finish evaluating both proposals and award the contract right around New Year's Eve.

Gov. Bob Riley
“It is my understanding the content and schedule laid out by the Pentagon not only addresses all the issues raised by the GAO but also provides the foundation for the selection of the best tanker. That is the only thing Alabama has ever insisted on. I hope Congress will not interfere with the aggressive schedule the Pentagon has established because our men and women in uniform deserve a solution to this ongoing controversy.”

Sen. Richard Shelby
“While I am still reviewing the draft Request for Proposal, it is my hope that it will address GAO's eight recommendations in an equitable manner,” said Shelby. “Moreover, I am gratified that the plan appears to bring this needed capability into the hands of our warfighters as quickly as possible. I remain committed to ensuring that this is a fair, open and transparent process that serves our men and women in uniform in the best way possible.”

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BamaBob Says:

Thu, Aug 07, 2008 at 2:56 pm

The 767 was the whole basis for the original tanker lease scam and that carried over into this RFP. But, the RFP was revised to broadened the playing field and NG walked away with the contract.

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michaelc Says:

Thu, Aug 07, 2008 at 2:54 pm

asda,

You are correct. Boeing does have the right to propose a different aircraft, but not the time. The accelerated time proposed does not give Boeing sufficient time to do that. High level proposals for both 767 and 777 aircraft were created and shown to the Air Force at the very beginning of the process. The 777 was rejected as to big.

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michaelc Says:

Thu, Aug 07, 2008 at 2:49 pm

Rosepetal,

Boeing picked the 767 as the bases for it’s tanker proposal not because it couldn’t sell them anymore, the 787 pretty much killed commercial 767 sales, but rather because it was what the Air Force asked for. The 767 was the only aircraft the best fit the RFP request for a KC-135 replacement. EADS/NG picked the A330 because it best fit the RFP. The Air Force clearly stated that the base line was the KC-135 and NO additional credit would be given for exceeding.

Now, they have changed their minds, fine. I have no problem with that. If they now want ‘the biggest tanker possible’, scrub the whole thing and start from scratch.

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asda Says:

Thu, Aug 07, 2008 at 2:48 pm

Boeing has the opition of putting forth a larger tanker if they want to based on the 777 but they are not going to do that. They want to tell the Air Force what to buy. No other Government bids are set up where the company tells the government what they will purchase from them.

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BamaBob Says:

Thu, Aug 07, 2008 at 2:46 pm

You can’t turn a sow’s ear into a silk purse.
. If a contractor puts forth a bid that not only meets the basic requirements, but exceeds them and he can do that for less money, then every where except for bizarre-o world we would have a winner.

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michaelc Says:

Thu, Aug 07, 2008 at 2:40 pm

Rosepetal,

You’re right, all things being equal, the one who exceeds the requirements at the lowest cost usually wins. However, if the person requesting the bids clearly states in that bid proposal that ‘no extra credit will be given’ for exceeding the requirements , that is misleading. The company that happens to exceed the requirements is given an unfair advantage.

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BamaBob Says:

Thu, Aug 07, 2008 at 2:38 pm

Quote:
. “In reckoning long-term operating costs for the rival planes, for example, the Pentagon will now use a 40-year lifespan, not 25 years. Assad said. And it will give “positive consideration” for exceeding the basic requirement to “offload” fuel.
. The first change could benefit Boeing, which is offering the KC-767, a smaller aircraft that burns less fuel, said Hamilton, who is based in Washington state.
. The second may be a plus for Northrop and its partner, EADS North America, whose KC-45 aircraft, which would be assembled in Mobile,is larger and thus can carry more fuel.”
***************************
. The only thing that would have made Boeing happy would have for the AF to pull the contract away from NG and give it to them on a cost plus basis.

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rosepetal Says:

Thu, Aug 07, 2008 at 2:31 pm

michaelc, it does not take a rocket expert to know wether its a construction bid etc. if you exceed expectations for the same amount, the company requesting the bid will award the contract to the company exceeding expectations.

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michaelc Says:

Thu, Aug 07, 2008 at 2:30 pm

asda,

You have no clue what you are talking about therefore I’m not even going to respond to the garbage you spout. If you want to have an intelligent, informed, discussion, feel free to join us.

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michaelc Says:

Thu, Aug 07, 2008 at 2:26 pm

BamaBob,

My primary grip with the new ‘revised’ RFP is that now credit will be give for exceeding the requirement for fuel offload even though the orignial stated, and i quote, ‘no extra credit will be given for exceeding the fuel offload requirement’. Is this not a MAJOR change to the RFP? Does this not CLEARLY skew the preference to ‘as large an aircraft as possible’ where there was not stated preference before?

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