A $3 billion difference in tanker bids

Aerial refueling bids from Northrop Grumman and Boeing were both “technically outstanding” but Boeing’s bid came in almost $3 billion more, the Pentagon’s top weapons buyer told the Washington Post.

John Young, the undersecretary for acquisition, said the tanker proposal from Northrop Grumman and partner European Aeronautic Defence & Space, the first 68 tankers would have cost $12.5 billion, compared to $15.4 billion under Boeing’s bid.

Northrop also promised earlier delivery and that its aircraft “provided more tanker capability and offload rate,” Young told the Washington Post.

2 Comments

  1. Posted September 18, 2008 at 12:40 pm | Permalink

    The Eagle’s coverage of this entire thing has been very one-sided. While this might be understandable given Boeing’s clout in Wichita it would be nice to see a bit more of the other side.

    I bet the papers in Alabama have a VERY different take on this.

  2. ictBest
    Posted September 18, 2008 at 10:38 pm | Permalink

    You also have to consider the cost of training all the Tanker Pilots for the Airbus Tanker, when the training for the Boeing Tanker would have been a lot cheaper and faster.

    Another thing was that you would have to rebuild a lot of hangers, because many of them wouldn’t fit the Airbus Tanker.

    Then there is replaceable parts, maintenance training, retrofitting all the jets with a another catch and delivery system to accept the Airbus model and on and on.

    There is a lot of cost that goes beyond the tankers initial cost and payload capacity that the Pentagon also must look at.