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Boeing, EADS submit bids for lucrative tanker contract
Published in Saudi Press Agency on 09 - 07 - 2010


Boeing Co submitted its bid today to build the
next generation of US Air Force tankers, joining the European firm
EADS in the competition to win the the lucrative contract, according to dpa.
Boeing turned over its 8,000 page-proposal to the Pentagon, one
day after EADS, the Paris- and Munich-based parent company of Airbus,
sent in its bid of an equal length. The aerospace giants are in a
bitter competition for the 35-billion-dollar contract to build 179
aerial refuellers dubbed the KC-X.
Both firms proclaimed their proposals meet all of the requirements
outlined by the Air Force and say their respective bids offer a
better deal to the US taxpayer and will create tens of thousands of
jobs.
"As the only company in this competition with rich experience in
developing and manufacturing derivative aircraft for the warfighter,
Boeing brings the talent and resources of our existing team and
facilities to fully meet the requirements of the US Air Force," Jim
Albaugh, president and CEO of Boeing Commercial Airplanes, said.
Boeing's proposal is based on its 767 passenger plane built near
Seattle, Washington, and EADS is proposing to build an assembly plant
in Mobile, Alabama.
"We're proud of our offering, which is the only one in this
competition that is flying and refuelling today," said Ralph Crosby,
the chairman of EADS North America. He added his firm's plane
provides "superior capabilities."
Friday was the due date for the firms to submit their bids. The
Pentagon extended by 60 days at the request of EADS, which needed
more time after its US-based partner, Northrop Grumman, dropped out.
The Pentagon wanted to avoid having Boeing as the sole bidder for the
contract.
Boeing and EADS, which stands for the European Aeronautic Defence
and Space Company, have been sparring over the contract for years.
The Northrop-EADS partnership had originally won the bid, but
Boeing lodged a protest with a congressional agency that determined
in June 2008 that errors were made in the process, prompting the
Pentagon to cancel the award and reopen the bidding earlier this
year.
The contract to replace the ageing fleet of KC-135s has been a
sensitive issue internationally and in the United States. Boeing
supporters in Congress have said that awarding the contract to a
foreign-based firm would cost Americans jobs.
The tanker programme could reach more than 100 billion dollars in
contracts in later stages of the programme to replace the KC-135s.
The Air Force has been plagued with problems in its long-standing
effort to procure the next generation of tankers.


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