Boeing JSF admits defeat in certain areas

Statement by Jerry Daniels, President and CEO, Boeing Military Aircraft and Missile Systems

Jerry Daniels
President and CEO
of Boeing Military
Aircraft and Missile Systems
ST. LOUIS, Oct. 30, 2001 – Yesterday, Department of Defense officials debriefed Boeing on our Joint Strike Fighter proposal. I went to Washington, D.C., to find out why we lost. I came away with the understanding that we didn’t lose. But Lockheed Martin clearly won. There’s a difference.

Our “A” was not as good as Lockheed Martin’s “A-plus.” I think Major General Mike Hough, the government’s program manager for JSF, summed it up best: “Boeing rated a 9 and Lockheed rated a 10.” That’s testament to the fantastic team who worked on our program. They did everything they were asked to do – and more. Our design not only met but exceeded the requirements…but the Lockheed Martin design exceeded them even more – and in key areas.

Both companies were graded at many levels that funneled into a few broad categories. Boeing scored higher than Lockheed in overall management and in past performance. And we generally tied in terms of affordability, although Boeing was assessed to have more risk factors in that area. Lockheed Martin consistently scored higher in air vehicle design. In almost every area it was close; but also in almost every area, they had the edge.

If I had to point to one factor that made the biggest difference, it would be the two companies’ approaches to propulsion for the short-take-off-and-vertical-landing, or STOVL, variant. While our design met the requirement, Lockheed Martin’s lift-fan approach was judged to have better performance potential than our direct-lift system.

Now we know why we didn’t win. We also know what we, as a company, have gained. Ultimately, our JSF One Team has made Boeing more competitive across the board. Many existing Boeing programs, such as the Super Hornet, already are reaping the benefits of some of the revolutionary advances that our JSF team drove. And Boeing will continue to apply these advances – in areas like materials, manufacturing and how we manage programs – to future systems, including unmanned vehicles and the Sonic Cruiser.

One of the great things I took away from the debrief was an affirmation of just how strong our team really is. Nothing I heard yesterday even begins to dent my confidence in our potential for the future. Our strengths in design, manufacturing and support are top notch, and we’re going to be in this business for many years to come.