Boeing dropped from competition for Air Force “doomsday” plane
It appears that by mutual agreement the Air Force has eliminated Boeing in the competition to build a new replacement for the E-4B Nightwatch, what the military calls its “doomsday” airplane, designed to survive a nuclear war.
Sources told Reuters that Boeing – the incumbent manufacturer of the E-4B Nightwatch – could not agree with the USAF on data rights and contract terms for the replacement plane that began flying in the 1970s. In other words, the planemaker did not want to sign a fixed-price agreement.
…”Rest assured, we haven’t signed any fixed-price development contracts nor (do we) intend to,” Brian West, Boeing’s chief financial officer, told investors in October.
With Boeing out of the competition, Sierra Nevada (the parent company of Sierra Space) is left as the only bidder. It is also quite willing to operate under a fixed price contract.
As I noted in a comment thread after a reader first posted a link to this story,
Boeing is signing its own death warrant. The entire federal defense and space agencies are steadily switching to fixed-price, and will simply go to others if Boeing refuses to accept those terms.
In fact, those agencies will want to go to others, because Boeing is making it clear it can’t meet its contractual obligations.
This decision also tells us a great deal about Boeing as a company. Its inability to fulfill any contract under a fixed price means it no longer has the discipline to do anything right. It seems buying products from it at this point might be a very foolish proposition.
It appears that by mutual agreement the Air Force has eliminated Boeing in the competition to build a new replacement for the E-4B Nightwatch, what the military calls its “doomsday” airplane, designed to survive a nuclear war.
Sources told Reuters that Boeing – the incumbent manufacturer of the E-4B Nightwatch – could not agree with the USAF on data rights and contract terms for the replacement plane that began flying in the 1970s. In other words, the planemaker did not want to sign a fixed-price agreement.
…”Rest assured, we haven’t signed any fixed-price development contracts nor (do we) intend to,” Brian West, Boeing’s chief financial officer, told investors in October.
With Boeing out of the competition, Sierra Nevada (the parent company of Sierra Space) is left as the only bidder. It is also quite willing to operate under a fixed price contract.
As I noted in a comment thread after a reader first posted a link to this story,
Boeing is signing its own death warrant. The entire federal defense and space agencies are steadily switching to fixed-price, and will simply go to others if Boeing refuses to accept those terms.
In fact, those agencies will want to go to others, because Boeing is making it clear it can’t meet its contractual obligations.
This decision also tells us a great deal about Boeing as a company. Its inability to fulfill any contract under a fixed price means it no longer has the discipline to do anything right. It seems buying products from it at this point might be a very foolish proposition.