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The U.S. Air Force has awarded a $40bn contract to Northrop Grumman and EADS to build 179 KC-45A military refueling planes. In a controversial decision, the Air Force took the contract for the taker upgrade program away from Boeing, which had supplied the Air Force with refueling tankers for the past 50 years.
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Fast Facts:
- Contract value: $30-$40 billion over 10-15 years
- Northrop Grumman will partner for the deal with the foreign-based company European Aeronautic Defense and Space Co. (EADS)
- EADS now the second-largest foreign provider to the U.S. military, behind BAE Systems
- Boeing is considering appealing
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KC-45A Program News
- Topix.net: KC-45A Program
- Google News: KC-45A Program
- The Independent: Boeing Considers Appeal After Losing $35BN Contract to EADS (March 3, 2008)
- "Boeing lost the contract in spite of offering a cheaper proposal—believed to be worth around $35m per plane. However, analysts said they believed the US group would have a very slim chance of overturning the decision on appeal, '...because the Northrop plane seemed markedly superior,' said Loren Thompson, a defense industry analyst for the Lexington Institute."
- The Engineer: Air Force Opts for KC-45A Tanker (March 3, 2008)
- Business Week: Northrop/EADS Upsets Boeing (February 29, 2008)
- Alabama Governor Bob Riley: "To say this is a great day for Alabama is a monumental understatement. This will go down in history as one of our greatest days."
- Financial Times: EADS stuns Boeing with $35bn USAF contract (February 29, 2008)
- Boeing statement: "Obviously we are very disappointed. Once we have reviewed the details behind the award, we will make a decision concerning our possible options, keeping in mind at all times the impact to the warfighter and our nation."
- CNN: Northrop Grumman gets $40B deal to replace Air Force tankers (February 29, 2008)
- Assistant secretary of the Air Force Sue Payton: "We had two very competitive offers in this competition. Northrop Grumman clearly provided the best value to the government."
- Reuters: Northrop sees U.S. tanker deal positive for growth (February 29, 2008)
- Associated Press: Northrop, EADS Win $35B Air Force Deal (February 29, 2008)
- BBC News: EADS wins $40bn US aircraft deal (February 29, 2008)
- Bloomberg: Northrop Beats Boeing for $35 Billion Tanker Program (February 29, 2008)
KC-45A Program Questions
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