(This is a re-publication of an article dated 8th March 2011)
Feedback of US Tanker bid :
Here’s the full shot of my conclusions on this contract :
- #Boeing had no choice except to win this contract.
- Lost of credibility
- Open-equal with competitors
- Concequently, its aggressive bid is a real challenge :
- Risk of overcost : high
- Risk of delay : average
- Risk of loss / in-question of the contract (including options): low
- Commercial image : Large increase
- If successful :
- Credibility (towards the Pentagon) : average/low gain
- International credibility : Large increase (success) / Medium increase (semi-successfully)
- In case of failure or partial failure :
- Credibility (towards the Pentagon) : significant decline
- International Credibility : mid / low fall
- Commercial image : low fall
- In case of failure (or partial failure) while EADS NA wins the AAS helicopters contract :
- Credibility of Boeing (towards the Pentagon) : significant decline
- Credibility of #EADS (towards the Pentagon) : Large increase
- Commercial image of EADS : average increase
- … become the Pentagon’s preference, yes, but why?
- … A government / military program, why?
- The credibility towards the civilian market (commercial market) is still increasing (this because of the reliance by an authoritative body) and can make a difference.
- This ensures a long-term book. And multiplication of these contracts provide a « comfortable mattress » in the long term.
- This helps to develop new technologies and / or acquire full mastery of these technologies.
Otherwise, this would have greatly jeopardized its position towards the Pentagon :
This is where EADS has all his playing card. Under the combination of these two conditions, EADS could become the Pentagon’s preference…
In particular the market for tactical transports aircrafts (cargo aircrafts). Today, the USAF received its last C-17. After the year 2013 it did not order more.
Due to that, it is reasonable to think that the USAF will launch a proposal bid for a new generation airlifter with first deliveries in 2018…
At this time, the A400M (note: smaller than the C17) will be reliable and operational in several NATO countries.
Actually, the direct impact on the commercial image is less than the business marketing itself.
However, there are at least 3 reasons for the interest of these companies with military and government contracts:
(The development of such technology has the advantage of being insured by the government book, larger and safer than a sum of commercial contracts).