UPDATE: Boeing is loser on Air Force tanker contract
The Air Force confirmed that Boeing did lose out on the aerial refueling contract. Read more by clicking here.
EARLIER STORY:
While the Air Force will officially award its $40 billion aerial refueling tanker contract later this afternoon, it appears that the team of Northrop Grumman and EADS beat out Boeing for the hotly-contested contract.
The Wall Street Journal is reporting the news on its website, citing “a person familiar with the situation.” Defense analyst Loren Thompson, noted for his close ties to the Pentagon, said he’d been told of the Northrop/EADS win as well.
The Northrop/EADS proposal beat Boeing’s on four out of five selection criteria, according to Thompson, mainly because its plane, a converted Airbus A330, could carry more fuel and cargo than Boeing’s proposed 767.
More details to follow.
OUR EARLIER STORY
The Air Force has scheduled a news conference at 4 p.m. central time today to announce the winner of its $40 billion aerial refueling tanker contract.
The news will cap a week of waiting for the coveted deal, one of the biggest military plane purchases of the decade. Late Thursday, the Pentagon says, its top arms buyer, John Young, signed a key document awarding the contract to either Boeing or the team of EADS and Northrop Grumman. This afternoon it will brief key lawmakers and the companies before making the award public.
Boeing, Northrop and EADS, along with much of the defense aerospace industry, have been awaiting the decision since Monday, when a key Pentagon committee met to decide the contract. Their decision has been kept under tight wraps while procurement officials dot all the i’s and cross all the t’s on one of the biggest Air Force purchases of the decade.
But as the wait has dragged on, word has trickled out that the Air Force recently changed one of the criteria it’s using to assess the bids, a move defense analysts believe could benefit Boeing. That change could be the basis for a protest of decision if Northrop and EADS lose, Reuters reports.
Check back after 4 central for news on the winner, and read full coverage in Saturday’s Post-Dispatch.



I doubt that the USAF actually changed the criteria for the evaluation. They know that doing that would make an appeal of the decision certain, and they\’d just have to start the bids over again.
I\’ll bet that the contract award documents merely include additional factors to further strengthen their decision which was only decided based on the 9 points of criteria, and those additional factors are just documenting things they can use when politicians or constituents whine about not getting a huge economic boost to their districts.
For example, if people complain that the KC-30 would be better because of those $billions saved by not wearing out the C-17s, the USAF can refer to the document and explain that more money will be saved by not having to strengthen tarmacs or modify hangars for the bigger KC-30s. Or, if Northrop wins, then they can explain the larger benefit of the KC-30s larger capacity outweighs the now-documented cost of improvements to the air bases.
The USAF knows it has to be rock-solid in this decision.