Air Capital Aviation Report: July 13, 2008

Carl ChanceBy Carl Chance, Wings Over Kansas’ aviation & aerospace correspondent, former news consultant and producer for Wingspan Air & Space Channel.

Boeing Statement on Defense Department Decision to Reopen KC-X Tanker Bid.

Boeing released the following statement in response to the U.S. Defense Department’s decision to reopen the KC-X aerial refueling tanker competition following the company’s successful protest of the original $35 billion contract award:

“We welcome the decision by Defense Secretary Robert Gates not to proceed with the contract award to Northrop Grumman/EADS and to reopen the KC-X tanker competition. However, we remain concerned that a renewed Request for Proposals (RFP) may include changes that significantly alters the selection criteria as set forth in the original solicitation. As the Government Accountability Office reported in upholding our protest, we submitted the only proposal that fully met the mandatory criteria of the original RFP.

“We look forward to working with the new acquisition team as it reopens the competition, but we will also take time to understand the updated solicitation to determine the right path forward for the company.

“It’s encouraging that the Defense Department intends to take steps to ensure a fair and open competition that, among other things, fully accounts for life-cycle costs, such as fuel, to provide the most capable tanker at the best value for the American taxpayer.”

“Industry, Congress and the American people all must have confidence in the integrity of this acquisition process,” Defense Secretary Robert M. Gates said at a Pentagon news conference. “I believe the revised process will result in the best tanker for the Air Force at the best price for the American taxpayer.”

Replacing the Air Force as the “source selection authority” is John J. Young Jr., undersecretary of defense for acquisition, technology and logistics. He is tasked with appointing an advisory committee to oversee the selection of a bidder to supply the modified commercial aircraft fleet that will phase out the current KC-135 tankers, which are 47 years old, on average.

DOD officials have ordered Northrop-Grumman to stop work on its contract, and a modified request for proposal could be issued as early as this month. The tanker request will remain in “open competition” until a new contract is awarded, which Secretary Gates said he expects will happen before year’s end.

Secretary Donley, who joined Secretary Gates on a July 10th briefing, became the Air Force’s acting secretary last month following a shakeup at the top levels of the service branch. The 67-page GAO report that cited “significant errors” in Air Force procurement practices became public nine days into his tenure.

“The Air Force needs to rapidly apply the lessons learned from this experience and move forward,” Secretary Donley said of the tanker contract, pressing the need to rebuild confidence in the Defense Department acquisition process. “Other Air Force acquisition decisions are on the horizon.”

Kansas Governor Sebelius to Lead Kansas Delegation to Farnborough Air Show.

Governor Kathleen Sebelius will lead a delegation of economic development and business leaders to the Farnborough Air Show in England July 14-20 to promote the Kansas aviation industry and encourage investment in Kansas by global aviation companies.

Joining the Governor on the trip are Kansas Secretary of Commerce David D. Kerr, University of Kansas Chancellor Robert Hemenway and executives from ICE Corporation (Manhattan), Greater Wichita Economic Development Coalition, Global Ground Support (Olathe) and Nex-Tech Aerospace (Wichita). Company executives will exhibit at a Kansas trade show booth sponsored by the Kansas Department of Commerce and the participating companies.

“100 years ago Clyde Cessna and Walter Beech came to Kansas, joined an emerging industry, and made history. Today, more than 50 percent of the airplanes flown in the world are made in Kansas, and our economy, our state and our country have benefited from their innovation and determination,” Sebelius said. “With our Economic Revitalization and Reinvestment Act, we’ve continued to grow and support the aerospace industry and I look forward to promoting Kansas’ strength in the global marketplace.”

The Farnborough Air Show is one of the largest international aerospace trade shows in the world, featuring nearly 1,500 exhibiting companies from 35 countries. In 2006, 270,000 visitors attended the seven-day event. This year will be the 60th anniversary of the show, which started in 1948 and is currently held every other year in rotation with the Paris Air Show. The Air Show is organized by the Society of British Aerospace Companies (SBAC), the UK’s national trade association representing companies supplying civil air transport, defense, homeland security and space. Together with its regional partners, SBAC represents over 2,600 companies. For more information, visit www.farnborough.com.

Note: We’ll publish continuing news and features of interest as they develop in the next “Air Capital Aviation Report.” Please keep logging on to www.wingsoverkansas.com for weekly aviation and aerospace updates on News, History, Features, Profiles, Education, Photo Galleries and more!