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Boeing Statement on Defense Department Decision to Reopen KC-X Tanker Bid

ST. LOUIS, July 09, 2008 -- Boeing [NYSE: BA] today released the following statement in response to the U.S. Defense Department's decision to reopen the KC-X aerial refueling tanker competition following the company's successful protest of the original $35 billion contract award:

"We welcome the decision by Defense Secretary Robert Gates not to proceed with the contract award to Northrop Grumman/EADS and to reopen the KC-X tanker competition. However, we remain concerned that a renewed Request for Proposals (RFP) may include changes that significantly alter the selection criteria as set forth in the original solicitation. As the Government Accountability Office reported in upholding our protest, we submitted the only proposal that fully met the mandatory criteria of the original RFP.

"We look forward to working with the new acquisition team as it reopens the competition, but we will also take time to understand the updated solicitation to determine the right path forward for the company.

"It's encouraging that the Defense Department intends to take steps to ensure a fair and open competition that, among other things, fully accounts for life-cycle costs, such as fuel, to provide the most capable tanker at the best value for the American taxpayer."

A unit of The Boeing Company, Boeing Integrated Defense Systems is one of the world's largest space and defense businesses specializing in innovative and capabilities-driven customer solutions. Headquartered in St. Louis, Boeing Integrated Defense Systems is a $32.4 billion business with 72,000 employees worldwide.


Contact Info:

Dan Beck
Integrated Defense Systems
(703) 414-6447

Walt Rice
Integrated Defense Systems
(314) 234-2149

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