WASHINGTON: The Air Force released a Request for Proposals (RFP) for the KC-X tanker replacement program in what it hopes will be the final time. Deputy Defense Secretary William J. Lynn, Secretary of the Air Force Michael B. Donley, and Under Secretary of Defense (AT&L) came to the Pentagon press room to emphasize that the top-priority competition would be “fair, open, and transparent” and that it would be a Best Value competition where price is important, but not the only criterion. Deputy Secretary Lynn also told reporters the process could become the “flagship for acquisition reform.”
The deputy secretary explained that since the September release of the draft RFP, competitors and Congress had made 350 comments that resulted in 230 changes to the RFP. While most changes were technical in nature, two major moves were changing the LAIRCM protection system to GFE (government-furnished equipment) and dropping the Microwave Landing System (MLS) requirement because technology has passed the system by. There was no change in the warfighting requirements for the new tanker. “It must be ready to fight from day one,” they all agreed.
One issue about the bidding was addressed with crossed fingers. While the program is structured for more than one bidder, statements from Northrop Grumman raised questions about whether or not the company would bid at all. DepSec Lynn said he hoped that Northrop would bid.
Others in Washington also pressed for a two-bidder program. House Armed Services Committee (HASC) Chair Ike Skelton (D-Mo.) and Ranking Member Howard P. “Buck” McKeon (R-Calif.) expressed confidence in the Air Force efforts to make the RFP fair and equitable and hoped there would be multiple bidders on the program. Members of the Alabama congressional delegation (Northrop Grumman plans to build the aircraft in that state) announced support for that bid as well.
Northrop Grumman released a cautious statement saying, “Northrop Grumman acknowledges that today it has received the final Request for Proposals for the U.S. Air Force KC-X Tanker Modernization Program. Northrop Grumman will analyze the RFP and defer further public comments until its review of the document has been completed.”
Now that the RFP has been officially released, the clock is ticking. The schedule calls for proposal submissions in 75 days. The government’s evaluation is set to take 120 days, followed by 30 days of contract award preparations. This puts contract award into the fourth quarter of FY10, with a September award probable, the group said.
When asked about the possibility of another protest, Under Secretary Ashton Carter said he certainly hoped there would be none. The Pentagon has gone to great pains to ensure the process is fair and transparent, he remarked. “The winner will know why they won and the loser will know why they did not,” he pointed out.
The acquisition chief said that the climate of protesting everything was becoming too routine, and hoped that in this case, provided there was no serious DoD mistake in the process, bidders would exercise restraint.
