Why We Won - Sized Right for the Fight

varios ^ | May, 2008 | vaious

[MHalblaub]

Not all quite on the tankern front.

“US GAO begins hearing on Northrop/EADS tanker deal”
http://www.reuters.com/article/marketsNews/idUSN0539240420080505
“A GAO spokesman confirmed the start of the hearing, but gave no details. The congressional agency, which reviews contract disputes, is due to rule on the case by June 19.

The hearing includes lawyers from Boeing, Northrop, and the Air Force, with three GAO officials hearing the various arguments, according to three sources familiar with the case, who said it could last all week.

“This hearing will go on for days and days,” said one of the sources, who asked not to be named. “Each side will put on what they think is the support for their key arguments.””

And Boeing is still “Sized for the Fight”.
http://boeingblogs.com/tanker/index.html
http://boeingblogs.com/tanker/archives/2008/05/sized_right_for_the_fight.html
“The Boeing KC-767 exceeded the requirements in a manner that still kept the plane right-sized and efficient,” McGraw said. “Our competition likes to talk about offering more, more, more — but in reality, the KC-30 will cost more to operate, more to maintain, and more to house, with the U.S. taxpayer footing the bill.”

And Northrop Grumman is fighting back with “Cost and Price Comparison”
http://www.irconnect.com/noc/press/pages/news_releases.html?d=142153
“While Boeing claims Northrop Grumman's bid is more expensive, the Air Force concluded that Northrop Grumman's development and production costs were lower and the total life cycle cost (which includes development, procurement, military construction, and operations and support) for each system would be about the same. Accordingly, the Northrop Grumman KC-45 offered significantly more capability for the same cost, thus providing the Air Force and taxpayer with the best value.”

And the case is getting more and more political.
“Baroness cautions against protectionism”
http://www.politico.com/news/stories/0508/10169.html
“I think lots of countries go through phases of that kind at different points, and I think there’s a great deal of shortsightedness about protectionism, so it’s not something I would recommend for anybody,” Taylor [Baroness] said. “Protectionism can seem to some people to be an attractive short-term hit, but actually it is a very dangerous long-term course, and I think there are some real dangers associated with it. When you have got exports at levels at which this country has exports at, then I think you have to be very careful about protectionism.”

[MHalblaub]

What does Baroness Taylor want to say in a diplomatic way?

“The Future Rapid Effect System (FRES) is the UK Ministry of Defence’s programme to deliver a fleet of more than 3,000 armoured vehicles for the British Army.”
“The announcement of the winning design was initially planned for November 2007, but no decision has yet been made public by the MoD. However, there has been speculation that General Dynamics has been selected as the preferred contractor by the MoD, suggesting that the winning design will be the Piranha.”
http://en.wikipedia.org/wiki/Future_Rapid_Effect_System

My guess: "You don't like our wings? Keep your carts!"

[agere_contra]

I think lots of countries go through phases of that kind at different points, and I think there’s a great deal of shortsightedness about protectionism, so it’s not something I would recommend for anybody,” Taylor [Baroness] said. “Protectionism can seem to some people to be an attractive short-term hit, but actually it is a very dangerous long-term course, and I think there are some real dangers associated with it. When you have got exports at levels at which this country has exports at, then I think you have to be very careful about protectionism.

She's absolutely right. Always buy the most cost-effective kit (as long as the supply is reasonably secure). Otherwise you've got featherbedding and overpriced, substandard kit

[MHalblaub]

The Aero-News got a nice introduction to the whole case:
(Read with Michael Buffer’s “Let’s get ready to rumble!” tongue in mind.)
“In this corner: the scrappy hometown contender, the favorite of apple-pie Americana and various congressional compatriots! Weighing in at a svelte 400,000 lbs — including fuel — this once favorite-turned-dark horse candidate is going up against a larger, heavier... and FOREIGN!... challenger, that’s already won the first round of our competition... and is only waiting for the bell to ring to get down to business!”
http://www.aero-news.net/index.cfm?ContentBlockID=168b3899-b8c5-4b48-b03c-1e1abe23b684