The U.S. Secretary of the Air Force has announced that Northrop Grumman/EADS (parent company of Airbus) has won the lucrative KC-X airborne tanker contract, a decision that ends months of jockeying, hand wringing, and speculation.
Or, does it?
By giving Northrop Grumman/EADS the award, and passing over Boeing (who originally won a variation of this contract is 2003, but that award was rescinded in controversy), the coming months stand to bring as much drama as guessing who would win it in the first place. Consider:
- To sweeten the deal, the Northrop Grumman/EADS group had announced some months ago that if they won the contract, they would move a large portion of Airbus' commercial construction to Alabama. How and when that happens will be a hot topic for manufacturers. The tanker contract alone offers U.S. suppliers great opportunities; the possibilities around commercial work heating up makes for strong prospects for new work.
- Both finalists for the KC-X stated earlier that they would not challengte the decision if either was passed over. Still, it would be startling if Boeing did not challenge the award to a group with such strong international ties.
- Earlier this week, the procurement officer for the KC-X contradicted earlier U.S. Government statements and suggested that the contract may be broken up into phases, which could allow Boeing to win a portion of the tanker project in the future.
Even with today's announcement, it's likely to take months to sort out the details and get to building planes. Once that happens, manufacturers stand to win big, if they're smart.
More to follow ...
