Boeing source: We may not bid for KC-X

[unhappycamper]

Boeing source: We may not bid for KC-X
By Vago Muradian and John Reed - Staff writer
Posted : Friday May 14, 2010 18:55:38 EDT

Boeing is considering not bidding for the Air Force’s KC-X tanker contract, a company source said Friday.

That would leave Europe’s EADS — which earlier this year had threatened its own pullout — as the sole bidder for the multibillion-dollar prize.

CEO Jim McNerney and other executives are privately debating whether their company can even win, much less make a profit, on the fixed-price contract, one senior Boeing executive said.

“Is it conceivable that we wouldn’t bid?” the executive said. “We are proud of the fleet and want it to win the contract so the Air Force keeps flying our planes. Your heart says you have to be part of it, but a CEO’s job is to make sure that the heart doesn’t make a decision the head can’t live with.”

Boeing spokesman Damien Mills insisted May 13 that the firm will bid.



unhappycamper comment: This shows you how much the M-I-C loves the 'cost plus' phrase for the goodies they manufacture.

[tinymontgomery]

1. Why do they hate America?

Again, money is more important then protecting America. Of course this is could be a good thing in saving money.

[depakid]

2. Let Eads have the deal and buil competitice plants

In the end, that's a good result for both the industry and the government.

The US gets a better, proven aircraft and industry gets competition once again.

[ProgressiveProfessor]

3. That would depend on the the EADS bid. This is really a move by Boeing to get away from

a fixed price contract in favor of a cost plus some sort of fee. It gets them a much better gravy train

[depakid]

4. The nature of the fixed price contract was one of Northrop's citied reasons for pulling out

Huge volume of work- risk and margins... not so good.

Of course, the political procurement writing was on the wall- but that may have changed now that the Gulf economy will take a hit. Might make more overall economic sense to build the plants down there.

[ProgressiveProfessor]

5. The pendulum swings back and forth on firm fixed price (FFP) contracts

Right now they are in vogue, in a few years they will be anathema. NGC took a bath on one a really big one a while back, I can see why they are balking.

[tammywammy]

6. Boeing still bitching about EADS bidding in the first place.

:eyes:

[Sen. Walter Sobchak]

7. Hey Boeing, how are the Japanese and Italians doing with their 767 tankers?

oh yeah... they suck. Five years behind schedule and having difficulty with this whole refueling thing.

If Boeing can't deliver 8 operational 767 Tankers in 8 years, how the fuck are they going to pull this off?

[pundaint]

8. Are MBA's running that company too? Engineering and bean counting do not produce the best results.

[Sen. Walter Sobchak]

10. The morons who ran McDonnell Douglas into the ground are running the company

Although the disastrous outsourcing model behind the 787 disaster was the brainchild of inexplicably deified Ford CEO Alan Mulally the greatest damage was inflicted to both Boeing and McDonnell Douglas by this fucktard, Harry Stonecipher.



Although his ultimate downfall was chasing skirt old enough to collect social security.

[depakid]

9. Australia's been quite pleased with it tankers

and let the US air force know back in 2008 before the contract went to Northrop/Grumman EADS:

"Australia is "very happy" with work by Europe's EADS (EAD.PA) on its new Airbus A330 refueling tankers, and has shared its insights with the U.S. Air Force, which is due to pick a winner soon in its own tanker program, a top Australian military official said on Thursday.

Australia picked EADS and its A330 Multi-Role Tanker Transport over Boeing Co's (BA.N) 767 tanker in 2004.

Boeing is competing with Northrop Grumman Corp, which has teamed with EADS, for a $40 billion contract for 179 refueling tankers that the U.S. Air Force is expected to award sometime after a key Pentagon meeting on Feb. 13.

"We're very happy with it. All the testing is going well," said Mark Reynolds, counselor for defense materiel at the Australian embassy in Washington, when asked about progress on his country's tanker program."

http://www.reuters.com/article/idUSN2427186520080124

Should have stayed with the initial deal...