USAF Tanker Drama May End in Sole-Source Buy

The USAF's KC-X aerial refueling tanker program, which was suspended in 9/2008 by Defense Secretary Robert Gates, was officially relaunched in 9/2009, with the floating of a draft RfP. The final RfP is due to be issued in 12/2009, with the award of a contract, valued at around $35 bil, anticipated in the summer of 2010. Vying for the requirement are a team of Northrop Grumman (NG) and EADS N. America, pitching the Airbus KC-30, and Boeing, offering either its KC-767 or KC-777. The latest development to surface in the competition is NG's threat to abandon the contest unless the tender is significantly modified. The firm claims that its chances are fatally harmed by the RfP's clear preference for a smaller aircraft with limited multirole capability.