Boeing

ST. LOUIS, July 9 /PRNewswire-FirstCall/ -- 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."

SOURCE: Boeing

CONTACT: Dan Beck, +1-703-414-6447, daniel.c.beck@boeing.com, or Walt
Rice, +1-314-234-2149, walter.h.rice@boeing.com, both of Integrated Defense
Systems of Boeing

Web site: http://www.boeing.com/