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Home U.S. World Entertainment Sports Business Health Science Technology Politics Offbeat Environment Travel News Articles EADS To Bid For Pentagon Tanker Contract; Seeks U.S. Partner Email Facebook Digg Twitter Buzz Up! ShareThis April 21, 2010 1:17 p.m. EST Topics: science and technology, politics, manufacturing and engineering, defense, military equipment, defense equipment, technology, economy, business and finance, United States Kris Alingod - AHN News Contributor Washington, DC, United States (AHN) - European Aeronautic Defense and Space Co. is looking for a U.S. partner to compete with Boeing in bidding for the Pentagon's $35 billion contract to build refueling tankers. Awarding of the contract has been embroiled in controversy for nearly a decade. Six weeks after it said it would not participate in the bidding process, EADS said it would offer its KC-45. The company said it is in discussions with potential American partners and will submit its proposal on the deadline, July 9. “We will offer a modern, more capable tanker in response to the Defense Department’s decision to encourage competition for this major taxpayer investment,” EADS North America Chairman Ralph Crosby, Jr., said in a statement. EADS, parent company of Airbus, said it would modify the KC-45 along with its commercial A330 planes at a plant to be constructed in Mobile, AL. The KC-45 is an American military version of the A330 MRTT, an aircraft modeled after the A330 and used by the air forces of Australia, Britain and other U.S. allies. The tanker has a boom refueling system with an offload rate of 1,200 gallons per minute, and an all-digital hose and drogue system for probe-equipped aircraft. “Our aircraft has demonstrated its unparalleled capability by refueling a variety of military aircraft utilizing both boom and hose and drogue systems, as well as by operating in the receiving position. That’s a statement our competition can’t make,” said Crosby. The United States last month extended the May 10 deadline for bids for 60 days. EADS had requested a 90-day extension, but the Pentagon called the added time "reasonable." EADS had partnered with Northrop Grumman to compete with Boeing for the contract, which has been fraught with controversies since 2002, before Northrop withdrew from the competition in early March. The bidding "clearly favors Boeing's smaller refueling tanker and does not provide adequate value recognition of the added capability of a larger tanker," Northrop had said in a statement. EADS had withdrawn from the competition following Northrop's decision. It shortly afterwards welcomed overtures from the Pentagon, calling a deadline extension "a significant development" but reiterated its concern that the bidding favored "the smaller, less capable Boeing tanker." Boeing on Tuesday welcomed EADS' announcement by saying it hopes for "a fair and transparent competition free of any additional changes intended to accommodate a non-U.S. prime contractor." Boeing will build new tankers based on its 767 commercial plane in plants in Kansas and Washington state. The company says the tankers are 24 percent more fuel-efficient than the Airbus A330, and will save taxpayers $10 billion in fuel costs over each plane's 40-year service life. The new refueling aircraft will also cost 15 to 20 percent less to maintain than the tanker from EADS. The Chicago-based company also raised its own concerns, citing "the ability of a heavily subsidized Airbus/EADS to accept levels of financial risk that a commercial company such as Boeing cannot." "We regret that these concerns will not be addressed in the bid evaluation, even when the U.S. government has proven in a world court that those subsidies are illegal and directly distort competition between Airbus and Boeing," it added. The French government owns 15 percent of EADS. Another 7.5 percent of the company is owned by a French conglomerate, Lagardere SCA. The Pentagon's decision to extend the deadline came the same week as a visit to the White House by French President Nicolas Sarkozy, who said in a press conference, "I said to [Obama], I trust you... If you say to me that the request for proposals, the call for tenders will be free, fair and transparent, then we say EADS will bid and we trust you." However, Pentagon press secretary Geoff Morrell made clear during his announcement, "There are those who have suggested that politics, both local and international, have somehow influenced this process. Nothing could be further from the truth. We have been and continue to make decisions on this critical program based solely on the law of the land and the needs of our warfighters." Northrop and EADS were chosen in February 2008 to build 179 KC-45 planes to replace the Air Force’s aging KC-135 Stratotankers. Boeing, which was originally awarded the contract in 2004, protested about "serious flaws in the process." The Pentagon reopened competition in July 2008 following a report from the Government Accountability Office that bidding had been filled with a number of errors. A final request for proposals was supposed to be released the following month, but Boeing threatened to withdraw if it wasn't given at least six months to prepare its new offer. Defense Sec. Robert Gates later cancelled the contract, saying it would be unwise to hand over "an incomplete and contested process" to his successor. After the Pentagon once more re-opened bidding last year September, Northrop warned it may boycott the bidding if no changes were made on the process, which they said favored Boeing. Northrop had also raised concerns that its pricing information from previous tanker bidding periods "was provided by the government to its competitor" and that it was "denied by the Pentagon" access to the same information about Boeing. Copyright © 2003 - 2010 AHN - All rights reserved.Redistribution, republication. syndication, rewriting or broadcast is prohibited without the prior written consent of AHN.License AHN news for your website, business, digital signage network or publication. 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