EADS to Enter Bid in Tanker CompetitionApril 23, 2010
EADS North America, the U.S. subsidiary of the European Aeronautic Defence and Space Co., announced it would enter a bid in the controversial aerial refueling tanker competition, competing against Boeing for a contract that could be worth up to $50 billion. The company plans to submit its proposal on July 9 — the revised deadline to give EADS time to enter its bid. EADS said it would build its tanker off the KC-45, an American-built craft that is already flying. The company noted that KC-45 builds on the EADS-based tanker that was previously selected in 2008 by the Department of Defense. Lawsuits and political maneuvering derailed that winning bid. Speaking to reporters in Paris, EADS Chief Executive Louis Gallois said that finding a major industrial partner in the U.S. to make certain, classified parts of the tanker, and to install them, “is an indispensable element” of the company’s bid. “We are talking with certain companies to play this role of partner,” Gallois noted, according to a transcript of the press conference released by EADS North America. He added that EADS would remain the prime contractor. Finding U.S. partners, however, might not be so easy. Though the company has various partnerships with American companies, it still has to find companies that are allowed to handle the sensitive security work, according to an article in the Financial Times. EADS also has to catch up on reams of technical data that was previously provided to Northrop Grumman, the prime contractor formerly in partnership with EADS that had previously won the tanker bid. Boeing countered that its bid was the only one able to meet the Air Force's 372 requirements at the most competitive price and with the proper level of quality. "We are confident in the superior value and capabilities of our NewGen Tanker and intend to present a compelling case for it in our proposal," the company said in a statement. |
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