Tanker Truths

07 May 2008
Who Should Decide: the Air Force or Boeing?
Today's Boeing ad in The Washington Post, "The Tanker Decision. Oversized Aircraft, Oversized Costs. It Doesn't Add Up" raises a fundamental question: Who should decide the capabilities of the KC-45 refueling aircraft, and how it should be used, the Air Force, or Boeing? Moreover, Boeing continues to make up facts to suit its arguments.

In its request to the Government Accountability Office to throw out Boeing's contract challenge, the Air Force noted that "Boeing's protest misconstrues the solicitation evaluation terms for aerial refueling, and its interpretation creates a patent ambiguity" regarding what the Air Force wanted.

The Air Force stated in its proposal request that it sought a versatile, multi-role tanker that would meet or exceed its requirements for both refueling and airlift. Boeing argues that its tanker is good enough for refueling - and, based on past operations, additional capability was not needed. But the Air Force made clear it saw great value in Northrop Grumman's KC-45 because it could carry more fuel, operate from more bases, and transport more materiel, troops and cargo - and evacuate more wounded soldiers from the battle theater. While Boeing's offer was looking at the past, the Air Force's selection of Northrop Grumman is all about the future.

The Air Force was abundantly clear about its desire for a versatile tanker throughout the bidding process. In December 2007, Defense Daily interviewed TRANSCOM Combatant Commander Gen. Norton Schwarz and wrote, "The bottom line, Schwartz told Defense Daily, is that unlike tankers of old, the KC-X aircraft will be multi-mission machines. 'We need, for the benefit of the joint team, to get as much out of that as we can.'" The Air Force also made this clear in the RFP, and in the entire military did the same in a White Paper published a month later. Boeing disparages this recommendation, arguing it knows better than the Air Force what will be needed. Why does Boeing keep trying to redefine the requirement?

Boeing continues to distort the truth even though the company has the real data, claiming that Northrop Grumman's KC-45 will burn $30 billion more in fuel. To reach that number, they made up their own assumptions and their own formulas. The fact is, the Air Force concluded - in a document provided to both companies - that the KC-45 is actually 6 percent more fuel efficient than Boeing's proposed aircraft and the life cycle costs of both aircraft was about the same. Who should we believe - the United States Air Force or Boeing?

Boeing also claims that its proposed aircraft would have $19 billion less in infrastructure and maintenance costs. In fact, the Air Force determined that the life cycle cost of both aircraft, which includes these factors, was about the same. Who should we believe—the Air Force or Boeing?

Boeing then claims its can provide more aircraft to battle theaters – conveniently ignoring an important factor in the Air Force's decision: Northrop Grumman's larger, more versatile aircraft can complete the entire host of combat scenarios using fewer aircraft than Boeing – something the Air Force found was a significant value to taxpayers AND battle commanders.

Finally, Boeing tries to bolster its faulty arguments by selectively pointing to criteria included in a 2002 tanker decision. Not only is that document outdated, but it relates to a contracting scandal that led to the contract being competitively bid. Relying on that outdated document, Boeing claims that the Air Force "and taxpayer get an oversized aircraft with oversized costs."

In fact, the Air Force made clear in the document explaining its selection that "Northrop Grumman's offer was clearly superior to that of Boeing's for...aerial refueling and airlift. Additionally, Northrop Grumman's...superior aerial refueling capability enables it to execute...with 22 fewer aircraft...an efficiency of significant value of the government."

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