Boeing wins massive U.S. air tanker contract for Everett, Wash., plant

Program to support estimated 50,000 jobs in Washington state and in Wichita, Kansas

U.S. aerospace giant Boeing on Thursday won a massive contract to supply aerial refueling tankers to the Air Force, defeating European rival EADS in a long-running contest.

Announcing the first part of $30-billion-plus contract, the Pentagon said: "Boeing was a clear winner."

The verdict capped a nearly 10-year attempt by the Air Force to begin to replace an aging Boeing-built fleet of tankers dating back to the 1950s. The planes, effectively flying gasoline stations, give the Air Force its global reach.

As a first step, Boeing is tasked with delivering 18 aircraft by 2017, but the contract is expected to grow to 179 tanker planes.

The decision was an upset, with most experts predicting Boeing's European rival EADS would land the victory.

Air Force Secretary Michael Donley said both firms met 372 mandatory requirements, but because there was a more than one percent price difference between the two companies the non-mandatory aspects were not taken into account. The lower-priced Boeing offer will offer taxpayer savings, he added.

The Air Force-led selection effort included experts from the larger Defense Department community, including the office of the Defense Secretary Robert Gates and independent review teams during each step of the process, the Pentagon said.

Facing the prospect of a procedural challenge, Donley emphasized that the decision was careful and thorough.

"This isn't about opinions, it's about the integrity of the source selection process," Donley said.

"We hope that all parties, recognizing the thorough process and intense multiple levels of review that have gone into this source selection, will respect the decision and allow this important procurement to proceed unimpeded."

"The war fighter deserves nothing less."

Boeing proposed the KC-767, or NewGen Tanker, built around its long-haul 767 plane.

The plane will be assembled at Boeing's plant in Everett, Washington state and equipped in Wichita, Kansas.

Boeing says the win will support 50,000 U.S. jobs.

EADS North America officials expressed "disappointment" and "concern" over the announcement.

"This is certainly a disappointing turn of events, and we look forward to discussing with the Air Force how it arrived at this conclusion," EADS North America chairman Ralph Crosby said in a statement.

"For seven years our goal has been to provide the greatest capability to our men and women in uniform, and to create American jobs by building the KC-45 here in the US. We remain committed to those objectives."

Washington state Senator Patty Murray swiftly welcomed the news as a win for Boeing and a win for the state.

"Today's long-awaited decision by the Pentagon is the right one for our military, our taxpayers and our nation's aerospace workers," Murray said in a statement.

"At a time when our economy is hurting and good-paying aerospace jobs are critical to our recovery, this decision is great news for the skilled workers of Everett and the thousands of suppliers across the country who will help build this critical tanker for our Air Force."

Murray said the decision was consistent with President Barack Obama's call to "out-innovate" the rest of the world.

"This decision is a major victory for the American workers, the American aerospace industry and America's military."

Source: WASHINGTON — Agence France-Presse — February 24, 2011

(25.02.2011)