BAE Systems and Boeing Sign Tanker MOU

(Source: BAE Systems; issued Nov. 12, 2003)

BAE Systems and Boeing have signed a collaboration agreement for the design, development, supply, and support of air-to-air refuelling tanker aircraft based on the Boeing 767 aircraft platform, helping to secure significant numbers of high-value jobs and skills in the UK.

The Memorandum of Understanding applies to the current UK programme for the future provision of replacement tanker aircraft, as well as existing programmes in the United States, Japan, and Italy. The MOU also applies to all future programmes globally and potential growth into other large platforms. Both BAE Systems and Boeing are part of TTSC, the Tanker Team.

Mike Turner, Chief Executive, BAE Systems said, “The bid put forward by TTSC will deliver the best capability for the UK forces, in terms of interoperability and flexibility of usage in concert with the US, as well as securing jobs, skills, and work for many years to come.

“The global market has already overwhelmingly made its decision with the Boeing 767 having been selected by the United States, Japan and Italy. This is why BAE Systems decided to team with Boeing to the benefit of the UK’s defence industrial base. Today’s MOU will therefore deliver very long term substantial benefits if the UK now selects the Boeing aircraft.”

Jim Albaugh, President and CEO of Boeing Integrated Defense Systems, commented: “A significant market for tankers exists world-wide. We are excited about making Britain’s aerospace industry part of our global tanker team. Today’s announcement is firm evidence of Boeing’s commitment to the UK and support of high value engineering jobs, as well as Boeing’s close working relationship with BAE Systems.”

This message has been edited. Last edited by: Sgt_Schlappy,

No chance that the USAF might buy a tanker version of the A380 then?

quote:

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Originally posted by UkChris:
No chance that the USAF might buy a tanker version of the A380 then?

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LOL...sure, just as soon as France buys some KC-767s.

Flight International
2-8 Dec 2003

STEPHEN TRIMBLE / WASHINGTON DC

US defence secretary demands investigation into sacking of two senior executives

US Secretary of Defense Donald Rumsfeld is blocking a lease-buy deal for 100 Boeing tankers while he examines the circumstances surrounding misconduct charges that prompted Boeing last week to fire two executives, including one close to the deal.

The review is the latest crisis to challenge the legitimacy of the US Air Force's two-year-old attempt to acquire the KC-767 tanker fleet, and came just as President George Bush signed the budget law on 25 November that finally authorised the deal. The dismissals of chief financial officer Michael Sears and former air force acquisition chief Darleen Druyun on 24 November also triggered calls for a wider review of the service's procurement decisions.

Boeing says Sears was fired for talking to Druyun about future employment while she was still the air force's top acquisition official and the Pentagon's representative in contract talks for the tanker deal. Sears has denied this and Boeing's claim that he tried to cover up his actions.

The question of whether Druyun improperly tipped off Boeing on Airbus pricing data, meanwhile, remains the target of a criminal investigation by the Pentagon's inspector general. Those allegations stemmed from internal emails obtained and released in late August by Senator John McCain, an ardent opponent of the deal.

Boeing says there are no links between the misconduct charges and the tanker negotiations. Rumsfeld's review, however, means a fresh round of scrutiny that may still imperil the project.

Says Rumsfeld: "We have just read that two people have been relieved of their responsibilities by a company that we had engaged in an understanding with, and that it struck me, at least, that responsible people would want to say to themselves: 'Well, what might that mean for the department? Did something happen?'"

Keith Ashdown, spokesman for the anti-tanker lease Taxpayers for Common Sense, admits that the potential effects of the new review are unclear, but the misconduct charges alone should at least "deter any new gerrymandering or shenanigans" on the deal.

The charges also may cast a new light on Druyun's 10-year tenure as the air force's top acquisition official. Druyun had gained a reputation as a prickly combatant of defence contractors, more than once publicly calling out a contractor's misdeeds. But Druyun also supported two controversial proposals that offered big rewards for Boeing - the tanker lease and a defeated attempt in 2000 to label the C-17 as a commercial item. The latter proposal was challenged as a kick-back to Boeing and generated a rebuke by Rumsfeld.

No Money in 05 Pentagon Budget for Boeing Tankers

(Source: Project On Government Oversight (POGO); issued Feb. 2, 2004)

A controversial U.S. Air Force lease-purchase proposal for 100 Boeing tanker aircraft is not included in President Bush’s 2005 budget, a senior defense official said today.

The senior defense official’s comments were made during a teleconference call today with several defense analysts, including POGO.

“This is welcome news and another sign that the tanker deal has finally been put to bed,” said POGO Senior Defense Investigator Eric Miller. “In recent months, the Boeing tanker lease proposal has evolved from a bad financial deal for the taxpayers to a full-blown investigation into possible improper conduct by Boeing and Air Force officials. Once again, we applaud Senator John McCain for making public the unethical back-room dealings surrounding this deal.”

*POGO investigates, exposes, and seeks to remedy systemic abuses of power, mismanagement, and subservience by the federal government to powerful special interests. Founded in 1981, POGO is a politically-independent, nonprofit watchdog that strives to promote a government that is accountable to the citizenry. ---In other words...they are a BIG PAIN IN THE AZZ.

Boeing back in spotlight after losing UK order

Flight International 3-Feb-04

Boeing's 767 tanker programme is bracing for fresh scrutiny from US lawmakers, following its exclusion from the UK's Future Strategic Tanker Aircraft contest.

A report by the US Department of Defense Inspector General will be released shortly, sources say. The report probes possible links between contract negotiations on the USAir Force's future KC-767 tanker and Boeing's admitted improper hiring of Darleen Druyun, the USAF's former acquisition chief, in 2002.

Exposed late last year, the ethics scandal forced the resignation of Boeing chief executive Phil Condit, the firings of Druyun and chief financial officer Michael Sears and the suspension of an approved US Air Force contract to lease 20 767 tankers and buy 80 more.

The Senate Armed Services Committee plans to hold two hearings in early February, while Senator John McCain may schedule a third with the Commerce, Science and Transportation Committee. They are expected to focus on industry hiring practices and most observers believe Boeing's $17 billion contract is unlikely to be overturned.

For McCain, who has berated the air force for choosing Boeing's platform in early 2002 without conducting a full analysis of alternatives, the UK's rebuff of Boeing's bid could provide fresh ammunition.

EADS North America is positioning the A330 tanker as a candidate for future USAF orders. The 100-aircraft lease/ buy plan will be followed by new orders as the USAF retires its more than 500 Boeing KC-135s.

Rumsfeld Praised for Scrutinizing Boeing Tanker Lease Deal

(Source: Citizens Against Government Waste; issued Feb. 6, 2004)

WASHINGTON --- Citizens Against Government Waste (CAGW) today praised Defense Secretary Donald Rumsfeld for saying that U.S. Air Force negotiations on leasing Boeing 767 aircraft as refueling tankers appeared to have involved wrongdoing, though he did not single out a possible culprit. The secretary has called for a 90-day suspension of the lease, along with several investigations of the $17 billion deal.

"The tanker lease is expensive, unnecessary, budget-busting, scandalous, and the worst example of corporate welfare and backroom deal-making in recent memory. A taxpayer rip-off of this magnitude calls for intervention from the highest levels of authority," CAGW President Tom Schatz said. "Secretary Rumsfeld is faithfully serving his duty to root out waste, fraud, and abuse at the Pentagon."

A frenzied lobbying campaign involving senior Boeing officials, Air Force officers, interested lawmakers and military retirees led to the deal's inclusion in the 2002 Defense Appropriations bill. The plan immediately attracted criticism from Pentagon offices, White House budget officials and outside experts, who pointed out that upgrading existing tankers or buying the planes outright would save billions of dollars. Darlene Druyun, the senior Air Force official who negotiated the deal with Boeing was subsequently hired, then fired by the company after it discovered emails indicating a conflict of interest.

Secretary Rumsfeld has ordered the Defense Science Board to evaluate the requirements needed to re-capitalize the tanker fleet. The DSB will identify issues, including corrosion, service life, and cost to maintain the current fleet, refurbish aircraft, modify aircraft, buy new aircraft, and reduce demand for new aircraft by re-engining. The secretary also said the Pentagon's in-house watchdog, Joseph Schmitz, was "working in an orderly and systematic way to try to come to the truth as to what took place in the matter." Schmitz will review the employment discussions regarding Darlene Druyun for any improprieties, including whether any other companies were involved in such discussions and whether they affected any decisions regarding the tanker lease.

Citizens Against Government Waste spearheaded the effort against the Boeing deal after it was surreptitiously approved by the Pentagon's acquisition chief during his last few hours on the job. More than 7,500 CCAGW members have signed a Citizens Declaration against the lease deal, while another 3,500 have generated faxes in opposition to House Speaker Dennis Hastert's (R-Ill.) support of the deal. CCAGW has also praised the efforts of Senate Commerce Committee Chairman John McCain (R-Ariz.) for his role as the voice of fiscal responsibility in attempting to stop this boondoggle. CAGW named Boeing its "Corporate Turkey of the Year" in recognition of the lease deal and a host of other scandals perpetuated by the company in 2003.

"Along with his efforts to streamline and modernize the U.S. military, Secretary Rumsfeld is trying to protect the integrity of the procurement system and the best interests of taxpayers," Schatz concluded.

Citizens Against Government Waste is the nation's largest nonpartisan, nonprofit organization dedicated to eliminating waste, fraud, abuse, and mismanagement in government.

New threat to US tanker deal

Flight International 10-Feb-2004

US defence secretary Donald Rumsfeld has ordered a new inquiry into the reasons behind the US Air Force's original decision in late 2001 to lease 100 Boeing KC-767 tankers.

The Defense Science Board (DSB) review is aimed at challenging the air force's fundamental case for leasing the aircraft. Rumsfeld's Office of Inspector General, by contrast, is looking into an ethical breach involving Boeing's improper hiring of a former air force acquisition official tied to the lease negotiations in 2002, and is expected to report findings soon.

The DSB inquiry may shed light on a particularly crucial issue for Senator John McCain, who criticised air force leaders for deciding in early 2002 to move forward on a KC-767 lease proposal before conducting a formal analysis of alternatives. The air force had dismissed options that included upgrading the air force's current Boeing KC-135Es or waiting until 2005 to hold a competitive procurement between the Boeing KC-767 and Airbus A330 Multi Role Tanker Transport.

The DSB is an advisory panel of 40 civilians who respond to taskings by the secretary of defence Samuel Adcock, a government relations executive for EADS North America, serves on the board.

they keep this up and we will end up with the Question Mark and hoses again.

The time has more than come to get going on these tankers! The 767 offers the best airframe available to convert with enough tranferrable load to make them worthwhile.

get on with it!

AGREED

Boeing slows KC-767 tanker development

Flight International
Tuesday, February 24, 2004

Boeing has slowed development work on the US Air Force’s KC-767 tanker pending completion of reviews of the programme by the US Department of Defense and others. Production of 767 tankers for Italy and Japan is not affected. The company will release around 100 contract workers in Wichita, Kansas, lay off up to 50 employees in the Seattle area and redeploy some 600 people across both sites. Boeing had spent $270 million on the USAF tanker programme by the end of 2003 and was continuing to spend $1 million a day until the slowdown, which will delay delivery of the air force aircraft. Boeing is still confident of receiving a contract.

They should just order the Airbus's and be done with it.

NEVER!

Boeing Statement to Employees on the US Air Force Tanker Program

(Source: Boeing Co.; issued Feb. 20, 2004)

CHICAGO --- In a message to employees today, Boeing President & CEO Harry Stonecipher provided the following update on the U.S. Air Force 767 Tanker program:

“Secretary of Defense Rumsfeld has implemented a pause in discussions between the U.S. Air Force and Boeing on the Air Force tanker program while a series of reviews is undertaken. It is important that these reviews be completed so the Department of Defense, the Congress, and the American public can have confidence in any final decision on the 767 tanker program. The process that the Secretary of Defense has put in place to review the tanker program is fair and reasonable and has my full support.

“It is important that sufficient time be built into the 767 tanker program schedule to accommodate the Secretary of Defense’s reviews. Consequently, starting on February 23, Boeing will slow the development efforts on the Air Force 767 tanker. We will implement this slowdown in a manner that will keep key program elements intact in the months ahead. (Production on the Japanese and Italian tanker programs will not be affected by this slowdown.)

“As we stated in our most recent quarterly earnings report, through the end of 2003 Boeing had spent $270 million of company money on the Air Force 767 tanker program and has been spending approximately one million dollars per day since then. Because important and detailed day-to-day dialogue with our customer is necessary to refine program requirements, we do not believe that continuing development work at the current level of effort is prudent for either the Air Force or Boeing.

“The slowdown will result in the releasing of approximately 100 contract employees in Wichita and could result in layoffs of up to 50 employees in Puget Sound as well as the redeployment of approximately 600 Boeing employees across both sites. We deeply regret the difficulties that this slowdown will pose for our Boeing employees and those of our teammates.

“Further, the slowdown will cause the Air Force 767 tanker program schedule to slip. The extent of any schedule slippage will be based upon the date of the eventual contract award and customer requirements.

“I am supportive of the process that the Department of Defense has put in place and am prepared to accept the results. In the end, I remain convinced that these reviews represent the best path toward restoring full confidence in the program and validating the need to get new tankers into the Air Force inventory as quickly as possible. Boeing remains committed to the Air Force 767 tanker program, our Air Force customer and our dedicated employees.”

Still have that old Ford tri-motor around? We can put some 5 gallon cans on it and ... PRESTO!

And to anyone who says buy Air(POS)bus - NO!

Well, I'll admit that Boeing did this to themselves, but it still doesn't change the fact that the USAF needs new tankers for its fleet asap....NON-Airbus tankers that is.

P&W to power 767 tankers

Flight International 9-Mar-04

In a surprise move, Boeing has selected Pratt & Whitney's PW4062 engine to equip its 767 tanker for domestic and international operators. All previous military derivatives of the 767 have General Electric engines.

Boeing says its decision was based on "best-value evaluation criteria, including engine performance, pricing considerations, management, and quality and schedule history".

Programme insiders say "rock bottom pricing" gave P&W a way into the tanker project, which has been dominated by GE's CF6-80C2 powerplant. Japan already operates GE-powered E-767 airborne early warning aircraft, and will field a CF6-powered tanker variant, in common with Italy.

The selection could become meaningless, however, if the US Air Force is unable to proceed with its proposed $20 billion lease/purchase of 100 KC-767s. Adecision on the project's future is due from the Office of the Secretary of Defense after 1 May.

I just read all the posts and I find it hard to believe that people would say that its a waste of taxpayer dollars for leasing new tankers. As I recall, the KC-135 was originally leased back in the late 50's and and early 60's before we actually purchaesed them. We need new tankers now. Not when we start having 135's start falling from the skies.

EADS still ready to jump in and build you some new tankers...dont worry, the project will be Americanized.

Linkage

No thanks...we prefer to use products that can be counted on when time comes for action...not those that will either work against us for their own greedy purposes...or surrender.