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Boeing Versus Airbus

In: Historical Events

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Boeing versus Airbus:
The End Results becomes an Air Force Debacle

Jason Bourne
Park University
November 17, 2009

Abstract
This paper explores the highly controversial bid process and subsequently protest for the Air Force’s KC-X refueling tanker. The main participants for the new refueling tanker contract were Boeing and Northrop Grumman (NGC) as prime contractor through a joint venture with the European Aeronautic Defense and Space Company (EADS). The Boeing Corporation has been the standard in the aerial defense industry. Their challengers, NGC and EADS, the owner of the Airbus, comprised of two very formable entities capable of taking on the aerospace giant Boeing. There were a lot at stake. Boeing has considered in being the “pride of American aerospace” unseated from the top perch of the aerospace industry by losing military contract potentially worth about $100 billion dollars. (Herszenhorn and Bailey, 2008) Overall, Boeing was a heavy favorite to win the contract being that it has manufactured tankers in the past for the Air Force. Two weeks later after the announcement, Boeing filed an appeal through the General Accountability Office (GAO) to protest the Air Force’s decision. This paper will discuss the Boeing’s basis of appeal and contrast them with the GAO’s findings in their protest. The source selection of the aerial refueling tanker contract became one of the most controversial procurement process in the history of the United States.

Boeing versus Airbus:
The end results becomes an Air Force Debacle

A protest bid begins when an offeror in a government source selection believes that the government agency has made an error significant enough to change the source selection. The most efficient way many protests are handled is through the Office of General Counsel of the General Accounting Office (GAO). If the GAO discovers any...

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