Pentagon to EADS: Are you serious about tanker bid?

Published 10:26 am Tuesday, March 30, 2010

Before the Air Force grants EADS a “modest” extension to bid for its $35 billion tanker contract, the Pentagon wants to know if the European company is “serious” about the competition.

The Air Force’s original deadline for bids for a contract to replace 179 of its KC-179 aerial refueling tankers is May 10. The Boeing Co. plans to offer a tanker based on its Everett-built 767 commercial jet. EADS is considering placing a bid on its own after its partner, Northrop Grumman, dropped out of the contest saying the Air Force’s requirements favor Boeing.

After Northrop’s withdrawal, the Air Force’s quest to replace its Eisenhower-era tankers – a process that has taken a decade – looked to be on the fast track. Pentagon officials even talked about speeding up awarding the contract.

But EADS’ interest in the lucrative deal has slowed things to a snail’s pace. It seems neither EADS nor the Air Force can make a decision that would move this competition further.

EADS wants the Air Force to grant their extension and change the requirements; the Air Force wants to know EADS will bid on the requirements as is if given an extension.

Many analysts say EADS isn’t likely to bid. But we won’t know that until EADS or the Air Force make a choice and go forward.