Sat, Mar 20, 2010
EADS Blinks, Says It MAY Want To Bid, Is "Assessing The
Situation"
The Pentagon said Thursday that it had received a communication
from EADS indicating that the company might reconsider its decision
to not bid on a $35 billion dollar contract to replace the Air
Force's aging fleet of KC-135 tankers, and the Defense Department
has indicated it might extend the deadline for delivering a
proposal, according to multiple media sources.
EADS and its partner Northrop Grumman announced earlier this
month that they would not bid on the proposal because they felt the
RFP favored rival Boeing. Bloomberg news reports that Pentagon
spokesman Geoff Morrell said in an e-mail that DoD would consider a
"reasonable extension" to the deadline. He cited seven previous
examples in which deadlines had been extended. “The
Department has received notification from EADS North America
indicating possible interest in competing for the Air Force’s
KC-X Tanker and we would welcome that,” Morrell wrote.
“Consistent with our commitment to conduct a fair and open
competition, the Department invites proposals from all qualified
contractors and, if necessary, we would consider a reasonable
extension to the RFP deadline."
In a statement posted Friday on its website, EADS said it was
"assessing the situation", but was still concerned that the terms
of the RFP had not been changed. "(W)hile this development is a
positive sign that the DoD seeks competition, it does not address
EADS’ underlying concerns that the RFP clearly favors a
smaller, less capable aircraft, and that the additional combat
capability offered by our system may not be fully valued," the
statement reads. "An important prerequisite for our consideration
of entry into this competition will be a significant extension to
the period within which to prepare and submit a proposal. EADS
welcomes the DoD’s recent statement which indicated a
willingness to extend the timeframe. Though this is essential, it
is only one factor in making a decision for EADS to compete. In the
end, the company will only submit a proposal if there is a fair
chance to win, after evaluating all relevant factors."
A spokesman for Northrop Grumman said the company had not "yet"
been contacted by EADS to discuss whether the two companies would
again partner in making the bid. Boeing told Bloomberg in an
e-mail that it is "100 percent focused on submitting a fully
responsive, transparent and competitive tanker proposal to the Air
Force.”
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