, to replace an aging fleet of tanker planes used to refuel military aircraft.
The Defense Acquisition Board, a group of key U.S. Defense Department personnel, meets Monday to choose between two contenders. The Pentagon hasn’t said when the decision will be made public; it could happen as early as Monday, or a few days later, officials said this week.
The much-postponed project pits
European rival. Both contenders are modifying commercial aircraft to make tankers that can refuel military aircraft while they are in flight. The planes will use modern technology, and will fulfill a request from the military to provide flexibility to undertake a variety of missions, including carrying equipment or passengers.
Analysts are giving an edge to
as the incumbent, which supplied the tankers now in use. Because the tankers will be delivered over such a long period of time, potential income from the contract isn’t seen as an issue for investors.
The decision Monday will cover the first part of a multi-phased contract spanning several decades. The first of 179 aircraft is expected to be in service in 2013. Over time, the Air Force will replace more than 500 old
replacement offering is a modified 767 commercial jet, while the Northrop team uses the Airbus A330 as its base.
The Pentagon is assessing the cost and the technical capabilities of the two proposals, as well as risks that they won’t meet performance parameters or delivery schedules.
The KC-30 from Northrop/EADS would cost more per plane - a projected
for the Boeing KC-767. But the KC-30 is also bigger, with greater capacity to carry fuel, cargo or passengers.
plane would be made in the U.S., with 58% of the Airbus tanker made on U.S. soil, according to a table published this week in Defense News, an industry publication. The contenders have pitched business proposals in various U.S. states.
, was forced to resign. That set the aerospace giant on the road to rebuild its tarnished reputation at the Defense Department.
After much Congressional scrutiny, early last year the Air Force put out the request for the current tanker proposals.
The huge contract will include two additional phases over a period that hasn’t yet been set. It is possible that later phases of the contract could be awarded to the loser of the first award, Air Force officials have said, adding that it would be too costly to split the initial award between
The winner next week likely will pick up additional orders from foreign governments.
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