Consortium Says Single Winner Could Cost Thousands Of Aerospace Jobs

The Aerospace Alliance, a four-state partnership dedicated to building the next aerospace corridor in Florida, Alabama, Louisiana, and Mississippi, said Monday the Air Force should split the contract to replace the Air Force's aging KC-135 tankers between Boeing and a consortium led by EADS Airbus and Northrop Grumman. The latter group contends that unless the terms of the RFP are changed, they will not even bid on the project.

While Northrop won the initial bid in 2008, the decision was challenged by Boeing, and the process was sent back to square one. Now, Randy Belote, Northrop spokesman, tells the Panama City News Herald that Northrop and EADS say the process is unfair and favors Boeing.

“The Aerospace Alliance supports a split that would benefit both Boeing and Northrop Grumman and provide the most expeditious means of replacing the aging tanker,” Al Wenstrand, Florida’s Great Northwest president and regional representative on the alliance, wrote in an e-mail. “In addition, it would create up to 100,000 jobs throughout all 50 states, including thousands of jobs in Alabama, Florida, Louisiana and Mississippi.”

A330 Tanker

Once a new RFP is released by the Air Force, which is expected by the end of February, Northrop will decide whether to bid, Belote said. If there are not substantial changes from the draft RFP sent out in January, Northrop won’t bid, he said. “We don’t really think we can win it this time,” Belote said.

Neither company wants to split the contract. Boeing spokesman William Barksdale said the defense department does not seem to support splitting the contract, and the company believes it can win. “We expect it to be a winner takes all,” Barksdale said. “We are eager to be in the competition and win the contract.”

The Aerospace Alliance contends that a split means the Air Force could replace tankers more quickly. One company can finish about 15 tankers per year, which means replacing an entire fleet could take decades.

In is e-mail, Wenstrand said splitting the contract means Northwest Florida will have at least some presence to secure branding the aerospace corridor. Northwest Florida would be able to compete for suppliers and supporting businesses. If the contract goes solely to Boeing, he said, Fort Walton Beach might benefit but Northwest Florida will lose a major opportunity.

B767 Tanker

“Should Congress opt for a dual buy contract with both Boeing and Northrop Grumman building the aircraft, the Northrop Grumman operation in Mobile will be constructed and the Boeing operation in Fort Walton Beach will benefit,” Wenstrand said. “For Northwest Florida, this situation is a win-win rather than an all or nothing approach to supporting either Boeing or Northrop Grumman.”

FMI: www.aerospacealliance.com