Acting USAF Chief Says Selection Process Wasn't "Fatally Flawed"

As expected, both Boeing and Northrop Grumman -- competitors for the hotly-contested KC-X contract, which was thrown open for rebid once again Wednesday -- each gave measured praise for the Department of Defense's decision to take over selection authority for the contract from the US Air Force.

"We welcome the decision by Defense Secretary Robert Gates not to proceed with the contract award to Northrop Grumman/EADS and to reopen the KC-X tanker competition," Boeing said in a prepared statement. "However, we remain concerned that a renewed Request for Proposals (RFP) may include changes that significantly alter the selection criteria as set forth in the original solicitation. As the Government Accountability Office reported in upholding our protest, we submitted the only proposal that fully met the mandatory criteria of the original RFP.

"We look forward to working with the new acquisition team as it reopens the competition, but we will also take time to understand the updated solicitation to determine the right path forward for the company," Boeing added. "It's encouraging that the Defense Department intends to take steps to ensure a fair and open competition that, among other things, fully accounts for life-cycle costs, such as fuel, to provide the most capable tanker at the best value for the American taxpayer."

In its statement reacting to the KC-X decision, Northrop Grumman said its "applauds" Gates and Under Secretary John J. Young "for recognizing that the acquisition of replacement refueling tankers for the Air Force should be put on a path toward quick closure. We are reviewing the decision to ensure the re-competition will provide both companies a fair opportunity to present the strengths of their proposals."

Northrop spokesman Randy Belote pointedly added the USAF already selected the KC-45A as the best choice, "and we are confident that it will do so again. Our men and women in uniform deserve nothing less. The Northrop Grumman KC-45 tanker is needed now and is ready now."

As ANN reported, the Government Accountability Office ruled last month the US Air Force had bungled its own selection process for KC-X, giving several advantages to the bid presented by Northrop and EADS.

During a Pentagon briefing Wednesday Michael B. Donley, acting secretary of the Air Force, said he concluded the USAF's acquisition system that led to the KC-X bid going to Northrop Grumman and EADS was not "fatally flawed... However, the GAO did sustain the protest in eight areas, and this has been sufficient to cast doubt on the Air Force's management of the overall process."

Donley was named acting USAF secretary June 9, following the forced resignations of his predecessor, Michael W. Wynne, and former Chief of Staff General T. Michael Moseley. The GAO issued its ruling on Boeing's KC-X protest nine days later.

FMI: www.boeing.com, www.northropgrumman.com/kc45, www.af.mil