Tanker Truths

19 Mar 2008
Setting the record straight
In a letter to the editor of The New York Times published today criticizing the newspaper's editorial backing Northrop Grumman's winning bid for the KC-45A aerial tanker, Boeing Vice President Mark McGraw makes a number of false assertions about Northrop Grumman's bid, its qualifications for winning the contract, and how the bidding process worked. This document sets the record straight on McGraw's misstatements.

Myth: McGraw claims that Boeing "received the highest rating possible, meeting or exceeding all requirements identified by the Air Force in its original request for procurement."

Fact: The Air Force, in its February 29, 2008 contract award announcement, relayed that Northrop Grumman "clearly provided the best value to the government," based on the criteria used to evaluate the bids.

Myth: McGraw said Boeing "was found to have significantly more strengths than our competitor and has 75 years of experience producing air tankers. …Northrop…has no experience producing tankers."

Facts: According to an examination by The Wall Street Journal of the Air Force's explanation of its decision reported in today's edition, "Government contracting documents show that the U.S. Air Force preferred the size and capability of aerial refueling tankers offered by Northrop Grumman. …" In addition, the plane that we submitted for this proposal has been built, flown and tested. The aerial refueling boom system Northrop Grumman offered has also performed in-flight refueling. Boeing has not yet even started construction on the plane or boom system described in its proposal. According to Loren Thompson of the Lexington Institute, the Air Force "could have 49 superior tankers operating by 2013, whereas if they funded the Boeing proposal, they would have only 19 considerably less capable planes in that year."

Myth: McGraw alleges that the Air Force altered its design criteria without informing Boeing, saying the military is guilty of actions akin to "changing the rules in the middle of a sporting event and informing only one team."

Fact: The Air Force issued multiple Requests For Information and draft Request For Proposals (RFPs) from each bidder before issuing the final RFP. Both Boeing and Northrop Grumman were continuously made aware of the Air Force's criteria for the contract award. Boeing had ample opportunity to complain about the bidding process and criteria while the competition was taking place but did not do so. At a February 29 press conference announcing Northrop Grumman's win,
Assistant Secretary for Defense Sue Payton said the bidding process was "incredibly open and transparent and rigorous. For months and months, we have been telling each offeror where their weaknesses are, where their strengths were, and so they've had a lot of opportunity to communicate with us and to make sure we were not talking past each other."

Myth: McGraw alleges that the result "likely resulted in the taxpayer's not getting the best value for this critical component of our national security."

Fact: As The Wall Street Journal reported this morning, Payton concluded in the Air Force report: "I am confident that Northrop Grumman will deliver within the cost, schedule and performance requirements of the contract because of their past performance and the lower risk of their cost/price proposal." Elsewhere, the report concluded that Northrop Grumman offers "an efficiency of significant value to the government."

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