Friday, April 16, 2010

EADS scrambling to find U.S. partner for Tanker contract

After the Pentagon had extended the contract bid deadline by 60 days for the U.S. Air Force Tanker Replacement Program, EADS has been running the gamut of U.S.-based defense companies to see if they would agree to partner with EADS for the contract.  Their original partner, Northrop Grumman, decided earlier in the year not to compete.  L-3 Communications, Raytheon, and BAE Systems have been tapped as potential candidates, although strong political pressure may inevitably keep these U.S. companies from teaming up.  It is highly unlikely that EADS would win if they decided to go it alone.  Aside from the obvious fallout of a European-based company taking away American jobs should EADS actually win, EADS also has very little experience in U.S. defense contracts.  Their largest U.S. military contract so far is the Army's UH-72A Light Helicopter, which is technically less challenging than the proposed new tanker.  Having a U.S. defense company on their side would give them the credibility and technical experience necessary to win the contract.

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