- 13 Jan 2011 08:02
#13599606
http://www.defensenews.com/story.php?i= ... =EUR&s=AIR
Antonov is competing, as is Boeing (777/767) & Airbus (330) among others. As you are no doubt aware, this will hopefully bring to a final decision a bid that has been stalled, canceled and overturned on several occasions.
PARIS - EADS expects a selection in February for the $35 billion contract to supply new KC-X air tankers to the U.S. Air Force, which is the subject of fierce competition with archrival Boeing, Sean O'Keefe, chief executive officer of EADS North America, said Jan. 12.
EADS is bidding its A330 Multi-Role Tanker Transport in the competition to replace the aging U.S. Air Force KC-135. (EADS)
"The contract award, which was announced as part of the request-for-proposal solicitation, was to have been around the middle of November last year. It has moved further toward next month, just as a consequence of due diligence," O'Keefe said at the European group's New Year's press conference.
Related Topics
* Europe
* Americas
* Air Warfare
"The process requires a series of individual steps for the ultimate request for a final price revision, previously referred to as 'best and final offer'," O'Keefe said. "That is due to be requested, based on current information we have from the Department of Defense, later this month."
On the due diligence process, O'Keefe said, "Not a dramatically larger number of inquiries but they want to make sure they get it absolutely right. There's no question, this is a very careful diligence process to try … to assure this is not contestable, as far as they can possibly make it. They have been very open about that."
He added, "Every indication would suggest that next month is more likely to be the contract award targeting period."
EADS Executive Chairman Louis Gallois earlier said the Air Force competition for 179 tanker aircraft was a key element in efforts to expand in the U.S. market, seen as the second pillar of the company's growth strategy.
"This is an important business opportunity for both EADS and Airbus, and we approach it as just that - a business opportunity with a clear objective to gain reasonable money," Gallois said.
Mergers and acquisitions are also part of EADS' plans to expand in the U.S. market, he said. Price and opportunity will weigh on decisions in this area.
"We need to be more present in the U.S.," Gallois said.
Besides bidding for the air tanker contract, Gallois pointed to the Light Utility Helicopter (LUH) program as a source of organic growth in the U.S. military market.
The LUH meant EADS has a "significant position in Army procurement," Gallois said. EADS also conducted the first flight of its demonstrator for the Armed Aerial Scout program for the U.S. Army, its next target, Gallois said.
"That is why we are investing in Texas and Mississippi," he said.
The other two pillars of EADS' future development rely on keeping its roots in Europe, where its military programs are launched, and emerging countries, where the company would pursue local partnerships and technology exchange.
The press conference was held at the assembly facilities of Astrium, the space division of EADS, at Les Mureaux, on the western outskirts of the capital.
Antonov is competing, as is Boeing (777/767) & Airbus (330) among others. As you are no doubt aware, this will hopefully bring to a final decision a bid that has been stalled, canceled and overturned on several occasions.
The concepts "WAR" and "PROGRESS" are now obsolete.
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