Michelle covers the aerospace industry in Snohomish County.
July 2
Tests continue on Boeing's 787 Posted at 2:06 pm by Michelle Dunlop Despite postponing the first flight of its 787 Dreamliner, Boeing is continuing pre-flight tests on its first two 787s.
And the company is putting its first Dreamliner through final gauntlet tests before progressing on to low speed taxiing.
Boeing still hasn’t given a new schedule for first flight.
Today, analyst Howard A. Rubel of Jefferies & Co. Inc. reduced his 787 delivery projection for 2010. Rubel adjusted estimated deliveries to 18 from 24 with a three month delay.
Governor considers trip to Boeing's Chicago headquarters Posted at 3:30 pm by Michelle Dunlop Gov. Chris Gregoire has been mulling a trip to Boeing’s headquarters in Chicago, irrespective of reports out today that the aerospace company may buy up its 787 supplier in South Carolina and open up a second production line there.
Boeing is keeping quiet about today’s reports about it buying Vought's South Carolina operations.
But local politicians and business leaders have been talking about the potential of losing the second 787 production line for months.
In February, Teal Group analyst Richard Aboulafia told aerospace representatives that Boeing was unlikely to stay in the region while at a conference in Lynnwood. A few days later, Gregoire assigned an aerospace advisor to try to keep Boeing in the state.
In March, the Legislature called for a study to assess how Washington compared to places like South Carolina, Alabama and Texas.
Gregoire’s trip to Boeing headquarters wouldn’t be the first “come to Chicago” chat that Boeing’s had this year. Boeing also met with union leaders earlier this year, sparking Machinists’ president Tom Wroblewski to take a different approach to working with Boeing.
So, when could we find out for certain Boeing’s plans? In this piece, Aviation Week’s Mike Mecham discusses whether Boeing will do it before or during its mid-year earnings call July 22. ... [Read More] E-mail | Print | CommentNEW! More talk of second Boeing 787 line going elsewhere … Posted at 11:32 am by Michelle Dunlop This morning,Flight Blogger has a report out that Boeing plans to buy out Vought and potentially set up a second 787 production line there.
Boeing spokeswoman Yvonne Leach said the company doesn’t comment about rumored acquisitions.
“We’ve made no decision about a second 787 line,” she said.
Speculation has been rampant about when and where Boeing would announce a second final assembly line for its delayed Dreamliner.
Last week, Aviation Week also indicated that South Carolina is Boeing's choice for the second Dreamliner assembly line.
Washington lawmakers even had South Carolina on their list of top competitors for aerospace business when they looked into the matter during the 2009 legislative session. Also on the short list: Texas and Alabama.
Despite last week’s delay on the 787, Leach said the company is continuing testing on test planes. And the company continues production work on Dreamliners in progress at the Everett factory. ... [Read More] E-mail | Print | CommentNEW!
Workers recently joined the 40-foot fuselage section to the center wing box. This first freighter will soon move to the final body join position.
"We continue to gain momentum on the assembly of the first 747-8 Freighter," said Mo Yahyavi, vice president and general manager of the 747 Program, in a statement. "The airplane is coming together well and will be ready to fly later this year as planned."
With the 747-8 moving along with ease and the new 787 stalled, it's now a matter of which one will fly first. Boeing had planned to put the Dreamliner in the air this month but postponed that first flight just last week. No new first flight schedule has been provided.
The 747-8 program previously sustained a delay because Boeing had to keep engineers on the 787 longer than anticipated.
Earlier this month, the center began taking reservations for seats on its observation deck. A $250 donation to the Future of Flight Foundation’s "Partners in Innovation" program would secure a front-row seat at Boeing’s big day.
But all 300 spots on Future of Flight’s deck are taken, putting $75,000 toward the “Partners in Innovation” program.
Given this latest delay, it’s likely that at least a few of those 300 people with reserved seats won’t be able to make it. In that case, there’s already a $250-donation-per-person waiting list.
(By the way, the center also has a plan for selling out spots in its parking lot on a first come, first served basis the day of first flight. ... might want to keep it in mind.)
No new orders were booked, according to the company’s Web site, which it updates on Thursdays.
Boeing has just nine net orders through June 23.
In (somewhat) good news, the drop in passenger air traffic stabilized in May and freight traffic actually saw a small improvement, the International Air Transport Association reported today.
International passenger traffic was down 9.3 percent in May compared to the previous year. But both April and May saw less severe year-over-year declines in passenger traffic than did March, which logged in a 11.1 percent decline from March 2008.
And demand for freight was down 17.4 percent in May compared to the same month last year. But that’s better than the 21.7 percent decline seen in April.
“We may have hit bottom, but we are a long way from recovery,” said Giovanni Bisignani, IATA’s Director General and CEO. “Capacity is not aligned with demand. …This crisis is the worst we have ever seen.”
... [Read More] E-mail | Print | CommentNEW! Which Boeing exec will take the fall for the 787? Posted at 8:14 am by Michelle Dunlop With investment firms and others predicting a lengthy delay for Boeing’s 787, in today’s story, I asked analysts whether Boeing will need to shake up management in order to appease Wall Street and Dreamliner customers for this latest setback.
The Teal Group’s Richard Aboulafia pointed out that the cause of this fifth delay is more of a technical issue than a management issue. Previous delays had investors questioning Boeing’s oversight of its global supply chain.
But Boeing’s communications strategy is a management issue, Aboulafia said.
JSA Research’s Paul Nisbet didn’t think a change in management would come until a new schedule is outlined, if at all. But he noted that several managers on the program – Scott Fancher, Pat Shanahan – are too new to it to take the blame.
Ultimately, that puts responsibility on the doorstep of key senior executives like Scott Carson, president of commercial airplanes, and Jim McNerney, Boeing Co. chief executive.
Neither McNerney nor Carson set up the 787’s supply chain.
But both maintained last week that the 787 would fly by June 30 – part of Boeing’s communications/credibility problem.
Readers, what do you think? Will a Boeing executive take the fall for the 787's fifth major delay?
Wall Street still was seething the day after Boeing announced another delay to its already tardy 787 Dreamliner jet.
Boeing’s stock dropped 5.8 percent, or $2.55, today to close at $41.32.
That’s on top of Tuesday’s decline of $3.03, nearly 6.5 percent. The company’s stock closed Tuesday at $43.87.
This morning, Morgan Stanley downgraded Boeing’s stock, saying it doesn’t believe Boeing will deliver the Dreamliner until 2011 – that’s a minimum nine months later than what Boeing promised (end of first quarter 2010) before this most recent setback.
The Dreamliner’s troubles aren’t solely responsible for Boeing’s Wall Street woes.
The Army put an end to the Boeing-led Future Combat Systems, headed up by the company’s Integrated Defense Systems. And Sea Launch Co., a satellite launch services provider in which Boeing has 40 percent stake, filed for bankruptcy earlier this week.
Rep. John Murtha, D-Penn., apparently met with key defense leaders in the Obama administration about splitting the tanker contract – an agenda the politician has been pushing for quite some time.
Murtha, who is the chair of the House Defense Appropriations committee, believes the only way to eliminate another lengthy protest is to divide the $35 billion award between Boeing and Northrop.
Murtha told Reuters that Pentagon acquisition chief, Ashton Carter, that he and Defense Secretary Robert Gates are looking at data on a split buy.
Murtha wants to see the Pentagon buy two or three tankers a month in order to replace rapidly the Air Force’s aging KC-135 tanker fleet.
E-mail | Print | CommentNEW! Will Boeing's 787 fly this year? -- Poll Posted at 6:48 am Several months ago, we asked Herald readers when the 787 would fly. Abour 35 percent of readers doubted Boeing's promised first flight date (by the end of June).
Here's something aviation-related (Cheezburger style) to smile about:
(By the way, my coworker suggested that Boeing might want to employ a cute little bunny like this one to announce any further Dreamliner delays ... because who can be mad at a bunny?)
With just a week left in June, the month in which the 787 was supposed to take flight, the company called off the Dreamliner's flight citing the need to reinforce a section of the aircraft.
We should get a little more information this morning during a conference call with Boeing's Scott Carson and Scott Fancher.
The company said in its press release that it will be several weeks before a new schedule is available. The 787 is already nearly two years behind schedule.
Today's news raises the obvious question: When will the Dreamliner fly?
UPDATED:Here are a few key points from the conference call:
The problem was discovered during static testing last month, but Boeing thought then it wasn’t a significant issue.
Last Friday, the company decided to halt flight testing.
There are 18 spots – 1 to 2 inches in size – along where the body and wings meet that need reinforcement.
Boeing is working with suppliers MHI and FHI to come up with a solution; it has several options in mind.
Boeing will continue with final gauntlet and taxiing tests on the first 787 while a solution is being worked out.
The company called some customers last night.
Again, it will be weeks before first flight is rescheduled.
Carson on first delivery: “There will be some impact.”
The Future of Flight Aviation Center and Boeing Tour in Mukilteo will be charging $10 per person to park in the center’s lot and watch the event from the grassy knoll looking out over Paine Field.
Boeing hasn’t set a date for first flight yet but has said it plans to put the Dreamliner in the air by the end of June.
The $10 per person charge can be used toward an admission ticket to the center and tour.
The Future of Flight has 300 parking spots available on a first come, first served basis. The center will open the parking lot at 6 a.m. the day of first flight, whenever that day is.
Once parking spaces are full, people can still pay the $10 fee to watch the flight from the center. They just won't receive the parking pass.
The center also is hosting an event for Future of Flight Foundation sponsors on the center’s deck. Sponsors will need to have made a $250 donation to the foundation before first flight to take part. Parking for that event will be in a separate area. ... [Read More] E-mail | Print | CommentNEW!
The wings at the bottom of the photo are for the first 747-8 Freighter. They are in the seal position in the final assembly bay. The wings at the top of the photo are for the second 747-8 Freighter. They were recently loaded into the wing stub join position.
Earlier this week, Boeing’s Pat Shanahan provided a brief update on the 747 while at the Paris Air Show.
The first four 747-8 Freighters are in various stages of assembly at the factory, with the first 747-8 Freighter more than 50 percent assembled.
For the 747-8 Intercontinental, more than 30 percent of design releases are complete.
“And the engineering on the airplane is better than planned,” Shanahan said ... [Read More] E-mail | Print | CommentNEW!
Today, the Mobile Press-Register’s political cartoonist gives us this juicy dig at the Boeing Co. and its prospective KC-777 offering for the U.S. Air Force tanker competition.
Boeing said this week in Paris that it might offer the Air Force a tanker based off its larger 777 commercial jet. This summer, the Air Force is expected to kick off its third attempt to replace its aging KC-135 fleet. The competition once again will pit Boeing versus Northrop Grumman and its partner EADS, who plan to assemble their KC-30 in Mobile.
For the last tanker round, cartoonist JD Crow had taken to calling Boeing’s KC-767 “Frankentanker” since it was a compilation of various 767 models. So, he’s labeled the KC-777 the “Bride of Frankentanker.”
In the last round, the Air Force initially awarded the contract to Northrop, but the Pentagon called the deal off when government auditors found flaws in the competition.
Here’s Crow’s description of what happened:
“In the previous round, Northrop Grumman beat Boeing like a red-headed rented mule. Boeing whined and cried and pulled out its heavy artillery of political puppets to get the bid appealed and ultimately suspended.”
But when the company updated its year-to-date orders tally on its Website this morning, as it does weekly, Boeing received no order cancellations last week.
That’s good news, given the slump that Boeing has been in all year as airlines cut back.
With a 737 biz jet order this week, Boeing’s up to 10 net orders for the year.
But maybe this game of “one step forward, two steps back” finally has ended for Boeing. Maybe Boeing will remain in the positive for the rest of the year? (Am I the only one who finds it a bit crazy that in mid-June the concept of Boeing finishing in the black is up for debate?) ... [Read More] E-mail | Print | CommentNEW!
June 17
The Boeing Co.
Boeing, the 787 and the sake ceremony Posted at 4:06 pm by Michelle Dunlop With the first flight of Boeing’s first 787 just days(?) away, the company began final assembly work on the first Dreamliner that actually will be delivered to a customer.
The first Dreamliner to fly won’t be the 787 that launch customer All Nippon Airways of Japan receives.
But the 787 that Boeing has in final assembly in Everett will be handed over in the first quarter of 2010 to ANA.
Boeing and ANA celebrated the occasion with a traditional "Kagami wari" ceremony, the breaking open of a wooden "Taru" (sake barrel) lid with wooden mallets.
"This is a great day for the 787 team," said Scott Fancher, vice president and general manager of the 787 Dreamliner program. "In 2004, ANA demonstrated great faith in Boeing and the 787 by placing the largest launch order for any new airplane in Boeing history. Since then, the ANA team has been an integral part of developing the 787 family of airplanes.”
ANA placed the launch order for 50 787s in 2004.
"Speaking for our entire global 787 team, including our partners, I'd like to say we are honored by ANA's commitment to the Dreamliner," Fancher said, in a statement. "We look forward to our continued partnership as we prepare the 787 to enter commercial service." ... [Read More] E-mail | Print | CommentNEW! More hints that Boeing’s second 787 line won’t be here … Posted at 7:54 am by Michelle Dunlop Where will Boeing put a second 787 final assembly line?
This is turning into the story that won’t go away (second, of course, to the tanker).
During the legislative session, politicians in Olympia wrangled with the question. And, in April, analyst Scott Hamilton gave his predictions on the subject to the Economic Development Council of Snohomish County.
But here it is again.
Over in Paris, Flight Blogger’s Jon Ostrower asked Boeing’s Pat Shanahan about where Boeing might place a second 787 line. Here’s the story.
Shanahan indicates that the decision might be sooner than we’ve been led to believe previously (if I remember correctly, Boeing’s CEO said 2010 for a decision).
Although Shanahan didn’t offer a list of locations that Boeing’s considering, he told Ostrower that there are “lots of geographical options...the real options are around 'how do you secure assurance of delivery? And I think that's been a discussion topic around some of the disruption we've realized...at Boeing."
Shanahan is referring to the 57-day Machinists’ strike last fall as a factor in the decision on a second line. While the strike certainly doesn’t account for the nearly two-year delay on the 787 program, it did lead to late deliveries of other aircraft, namely those for Virgin’s Richard Branson, who was none too happy with Boeing earlier this year.
Shanahan isn’t the only person with ties to Boeing to hint that the second line might go elsewhere.
In a recent interview for Crosscut, Fred Jarrett, a King County executive candidate, said outright that second line won’t be here. Jarrett claims no inside knowledge.
"The second line will be elsewhere, in Texas or the South. Boeing is just doing that to have more options. The real question is about future narrow body assembly," Jarrett said.
At the Paris Air Show, Qatar’s chief executive Akbar Al Baker threatened to cancel an order for 60 Dreamliner jets if Boeing doesn’t get its act together.
“Boeing is run by bean counters and lawyers. We have some serious issues with them, and if they do not play ball with us they will be in for a serious surprise.”
Boeing’s 787 is nearly two years behind schedule. However, Scott Carson, president of BCA, told Bloomberg News that the 787 is capable of flying. Boeing plans to put its Dreamliner in the air by the end of June.
UPDATE: Qatar's Al Baker told Dow Jones Newswire on Wednesday that the airline might become an all-Airbus customer.
Qatar may pull its order for 24 777s and is seeking compensation for delays of the 787s it has on order. Qatar has 60 Dreamliners on order.
"Boeing doesn't realize how much they're hurting their customers' plans," he said. "They're very much mistaken if they think we're going to give them much more time on the issue." ... [Read More] E-mail | Print | CommentNEW!
Boeing began handing out pink slips earlier this year as the company planned to trim its employment companywide by 6 percent this year. That meant 4,500 job cuts in the commercial airplanes division.
The decline here in Snohomish County hasn’t been as steep as expected … or, at least, not yet. Boeing does plan to slow production rates for its Everett-built 777 next year.
So far, the county had more aerospace jobs at the end of May, 35,700, than it did at the end of May 2008 with 34,900.
Certainly, Boeing’s efforts to get the 787 out the door have something to do with that steady aerospace employment rate.
Boeing risks pushing back the 787’s entry into service the closer that first flight is to the end of June, reports Aviation Week.
Boeing’s Pat Shanahan spoke to reporters at the Paris Air Show today, outlining the last steps before the Dreamliner’s first flight.
“We now are preparing to conduct final testing to verify that the airplane is ready to enter the flight test program,” Shanahan said, in a statement. “From there, we will go through taxi testing and then the airplane will take to the sky. That will be an emotionally intense day for everyone who had a part in reaching this key milestone.”
The company is expected to conduct flight readiness tests on the 787 this weekend before final gauntlet and then taxiing tests.
With only two weeks left in the month, Boeing is rapidly eating up any wiggle room it allowed, based on Shanahan’s statement.
The company has given itself 8 ½ to 9 months for flight tests, far shorter than previous test programs. At a media day in late April, Frank Rasor, Boeing’s director of flight test operations, said the company had built a 10 to 15 percent margin of error into flight tests – about the same as Boeing gave itself on the 777. ... [Read More] E-mail | Print | CommentNEW! AirAsia X orders 10 A350s Posted at 9:54 am by Michelle Dunlop Airbus continued its orders streak at the Paris Air Show on Tuesday, landing a firm order from AirAsia X for 10 A350 XWBs.
“Business is all about timing and long-term strategy," said Tony Fernandes, Director and Founder of AirAsia X, in a statement. "At AirAsia we have always planned for the long-term. By buying the A350 XWB the strategy of AirAsia and AirAsia X is now fixed all the way to 2020."
AirAsia X's order brings Airbus that much closer to topping the 500-order mark on its popular A350 with 493 orders from 31 customers.
Vietnam Airlines signed a tentative agreement for two A350s and signed a firm order for 16 A321s. Cebu Pacific also ordered five A320s.
Boeing moves second 787 to flight line Posted at 2:48 pm by Michelle Dunlop Boeing has moved its second 787 Dreamliner to the flight line in Everett as the company closes in on first flight.
"Momentum continues to build with each milestone achieved," said Scott Fancher, vice president and general manager of the 787 Dreamliner program, in a statement.
The second 787 sports the livery of Dreamliner launch customer All Nippon Airways. Boeing will begin fuel tests immediately on the second Dreamliner.
Boeing still plans to fly the first Dreamliner by the end of the month and make its first 787 delivery to ANA early next year. ... [Read More] E-mail | Print | CommentNEW!
The center, which is located off Paine Field in Mukilteo, came in at the 10 spot on the list.
Seattle’s Museum of Flight didn’t make the list.
Topping the list was the Smithsonian Institution's National Air and Space Museum and Steven F. Udvar-Hazy Center. Coming in second is Wright Brothers National Memorial & Carillon Historical Park in Dayton, Ohio.
Boeing considers 777 tanker, wing Posted at 9:57 am by Michelle Dunlop The Boeing Co.’s 777, not its 787, seemed to be the hot topic at the Paris Air Show.
Jim Albaugh, head of Boeing defense, said the company could offer the U.S. Air Force either a tanker based on its 767 or its 777 jet.
Boeing offered its KC-767 in the last round, which the Pentagon eventually halted.
The Air Force is expected to release its requirements this summer.
“We don’t know if there’s going to be a requirement for a larger airplane or a smaller airplane,” Albaugh said.
So Boeing has now dubbed its tanker the KC-7A7. If the Air Force seeks a smaller, capable flexible airplane, Boeing will offer the KC-767.
“If they want a larger airplane with maximum fuel offload, then we’ve got the 777,” Albaugh said.
Boeing has several media briefings from Paris available as podcasts at its air show Web page.
Additionally, the company is looking at designing a new wing for the 777 to keep the plane competitive with Airbus’ A350, according to Aviation Week and Bloomberg.
Analysts have been asking Boeing when it plans to redesign the 777 essentially since Airbus launched its A350 XWB. The Airbus mostly composite plane is designed to compete more with the 777 than the new 787. ... [Read More] E-mail | Print | CommentNEW!
June 14
Boeing, Northrop talk tankers in Paris Posted at 8:17 pm by Michelle Dunlop Both the Boeing Co. and Northrop executives had the U.S. Air Force tanker competition in mind as the Paris Air Show was set to begin.
Boeing isn’t locked into offering the Air Force a tanker based on its 767, Jim Albaugh, Boeing’s defense chief, told reporters.
“What we’re trying to do is make sure whether or not they desire a smaller, more flexible airplane or a larger airplane, that we’re there with an offering,” Albaugh said in this Bloomberg story. “We make five or six different kinds of airplanes. We’re holding them all in reserve.”
But Albaugh essentially ruled out the yet-to-fly 787, due to its commercial orders, and the 737, for size reasons.
Northrop Grumman, which teamed with Airbus’ parent company EADS, talked up its KC-30, which initially won the last round. But Northrop also said it’s willing to split the deal with Boeing if that’s what the Air Force chooses.
A couple other interesting stories coming out of Paris:
Airbus says jet production at its factories could slow as much as 25 percent over the next two years: NY Times.
But 15 years ago today, another Boeing first flight took place.
Boeing’s 777 took off from Paine Field here in Everett at about 11:43 a.m.
Capt. John Cashman, and his first officer, Capt. Ken Higgins flew the 777-200 for three hours and 45 minutes.
In a Herald story, Cashman described the flight like this:
"It's great, it's really great. ...Every test pilot on the first flight has said that...but I've flown production planes that weren't as smooth as this one."
Boeing delivered the first 777 to United Airlines on May 15, 1995.
Fifteen years later, Boeing (and the world) is anxious for the first flight of its latest all-new aircraft, the 787 Dreamliner, which is supposed to fly by the end of the month.
Boeing loses 787 order; has 7 net orders for 2009 Posted at 8:35 am by Michelle Dunlop In the week before the Paris Air Show, the Boeing Co. pulled back into positive jet orders territory but lost another order for its 787 Dreamliner.
According to Boeing’s Orders and Deliveries Web page updated Thursday, the company won orders for eight 737s for an unidentified customer last week.
But Boeing also logged in another cancellation for its delayed 787 Dreamliner.
Boeing had been at a net zero until the new orders/cancellations this week.
This year, customers have cancelled orders for 58 787s while placing 13 new requests. ... [Read More]
No, Boeing didn’t fly its 787 today Posted at 7:08 pm by Michelle Dunlop I’ve been in seclusion (sans e-mail/Web access) most of the day trying to get some writing done.
But as soon as I got online, I noticed some chatter about whether Boeing flew the 787 for the first time today.
No, it didn’t.
The confusion seems to be linked to a flight number on FlightAware (BOE787). Easy to see how that would be misleading. For the record, it was a Boeing 777.
By coincidence, I happened to drive by Paine Field at the scheduled departure time … and again an hour and a half later. Would have been a quick flight to get that thing in the air and back to its spot on the flight line. ... [Read More] E-mail | Print | CommentNEW!
The Boeing Co.
Look at that Boeing 747-8 wing fly Posted at 9:25 am by Michelle Dunlop The Boeing Co. just sent over this photo of the 747-8 Freighter’s wing.
On Sunday, Boeing workers here in Everett moved the jumbo jet from wing stub join to the seal position.
From this position, the 205-ft, 9-inch wingspan will move to the wing-body join position.
The 747-8’s raked wing tips have not been installed yet. After that’s done, the new 747’s wingspan will be 224 feet, 7 inches, considerably longer than the 747-400’s wingspan of 211 feet, five inches.
Boeing plans to deliver the first 747-8 Freighter in the third quarter of 2010. ... [Read More] E-mail | Print | CommentNEW!
“Washington is being challenged like never before by other regions, both here and abroad,” said said Rick Bender, president of the Washington State Labor Council, AFL-CIO, and co-chair of the partnership. “They want the high-paying jobs and improved quality of life that comes with the aerospace industry.”
Business owners, labor leaders and local governments formed the group and want to work with Gov. Gregoire’s aerospace council and the Aerospace Futures Alliance, which also wants to save aerospace jobs and keep Boeing in the state.
“The Washington Aerospace Partnership is the third leg of the stool,” said Tayloe Washburn, chair of the Greater Seattle Chamber of Commerce and a Partnership co-chair.
“The industry alliance will advise on what is needed to attract aerospace. The state council will develop the necessary policies. And, the Partnership will advocate for both of them.”
IAM president Tom Buffenbarger called on the Obama administration and Congress to begin crafting emergency legislation to provide funds for “rebuilding the nation’s manufacturing infrastructure” and to provide training and support to unemployed workers.
“This is the worst economy in 75 years and we need bold measures that are equal to the crisis we’re facing,” said Buffenbarger. “No sector of our economy is in greater peril than manufacturing, and no other sector provides a greater return on investment. We cannot afford to wait any longer.”
Lastly, Sen. Patty Murray, D-Wash., questioned Defense Secretary Robert Gates regarding the Air Force aerial refueling tanker contest between the Boeing Co. and Northrop Grumman.
Hearing excerpts from Murray’s release:
Sen. Murray: “I am worried about how we are balancing this acquisition reform effort in relation to our domestic industrial base. I am worried about the long-term ability of our domestic industrial base to provide our military forces what they need to accomplish their national security missions....Can you tell me how you are taking into account the health and longevity of our domestic industrial base including our suppliers, design engineers and manufacturers as you tackle acquisition reform in the DoD?”
Secretary Gates: “Well I think so far in terms of the decisions I have made, most of the issues have not been taken, the decisions have not been taken, with the view to the industrial base, but rather acquisition programs that had been extremely badly managed, in substantial measure by the Department of Defense. So I would say in all honesty that not very many of the decisions I have made were made with the industrial base as an important consideration……As we go forward…clearly we have concerns about the industrial base, but to be perfectly honest, decisions made a long time ago have limited our options in this respect.”
Sen. Murray: “But if keep going down this road without thinking about it, then ten years from now we will be in a bad place….I do think we have to start talking about acquisition reform in terms of our industrial base as well, and I hope we can work with you on that.” ... [Read More] E-mail | Print | CommentNEW!
Last year, 1,300 Boeing employees participated, raising $130,000 to find a cure for breast cancer.
If you’ve ever raised funds for an event like this, you know that fundraising can be almost as time-consuming as training. King 5 has this story on a local Boeing family who will lace up their walking shoes for the event.
Sunday’s event in Seattle features a 5k run and a 5k walk. For more info on the event, visit the Puget Sound Race for the Cure Web site. The Foundation set a goal of raising $2 million through this Sunday’s event. At noon, it had raised $1,343,147.
In this Reuters story, Northrop says it has done the research and disputes claims that a dual bid would be more costly for the Air Force.
Just yesterday, Air Force Secretary Michael Donley told members of the Senate that a split tanker buy would "not make sense".
Northrop says it's not advocating a split buy, given it won the last round before government auditors found flaws in the process.
The Air Force was asked to do its own analysis on the costs of a split buy and will be issuing a report soon. ... [Read More] E-mail | Print | CommentNEW!
June 4
AF Secretary: Split tanker contract 'would not make sense' Posted at 10:59 am by Michelle Dunop If you needed further gurantee that the Air Force is not interested in splitting a $35 billion tanker contract between the Boeing Co. and Northrop Grumman-EADS, then Secretary Michael Donley delivered it today.
In a Senate appropriations committee hearing, Donley said he shared Defense Secretary Robert Gates' opposition to splitting the contract. The Air Force believes that incorporating both Boeing's KC-767 and Northrop and EADS' KC-30 into its fleet would be more expensive to taxpayers.
“This would double, almost, the tanker piece of the Air Force’s procurement program…and we think the dual award would not make sense,” Donley said.
The Pentagon called off its tanker contest late last year after government auditors found flaws in competition. The Air Force initially had awarded the contract to Northrop and EADS.
Sen. Patty Murray, D-Wash., asked Donley how the Air Force plans to make sure the renewed contest will be a fair one. The Air Force could release its bid requirements to Boeing and Northrop this summer.
"We have taken measures inside the Air Force to strengthen our source selection process. Since the events of last summer we have increased our focus training on lessons learned from the two protests that were sustained last summer,” Donley said.
The deal could be worth up to $10 billion, which is critical at a time when orders have come to a near halt for the jet makers. ... [Read More] E-mail | Print | CommentNEW!
Murray plans to question Air Force Secretary Michael Donley and Chief of Staff General Norton Schwartz about the multi-billion dollar competition set to start again this summer.
The senator “will also push them on the critical need to maintain a strong domestic industrial base,” according to a press statement.
With a huge Boeing presence in her state, Murray opposed the Air Force’s decision last year to award a $35 billion contract to Northrop and EADS for their KC-30 tanker. Boeing, which offered its KC-767, protested the Air Force’s decision. The Pentagon eventually halted the contract.
Yesterday, an opinion piece by U.S. Reps. Jo Bonner and Artur Davis showed up in the Washington Times. The two representatives are from Alabama, where Northrop and EADS would build their KC-30.
Bonner and Davis want the Air Force to proceed with the contest using the previous requirements. They suggest the Air Force should “tweak” the RFP to account for suggestions made by government auditors last year.
Like Murray, the two Alabama politicians say they want a fair competition:
“If the RFP is slanted to predetermine a winner, there will not be a meaningful competition. Without a real competition, we risk repeating the one-sided KC-767 lease deal. Boeing is a proud company with a distinguished tradition, but the record of that deal is replete with proven corruption and excessive costs.”
But Bonner and Davis say they would support a split-buy:
“A dual contract may well be the only way to break the political impasse and avoid another lengthy round of protests.”
Defense Secretary Robert Gates opposes a split-buy.