We explore the device potential of tunable-gap bilayer graphene FET exploiting the possibility of opening a bandgap in bilayer graphene by applying a vertical electric field via independent gate operation. We evaluate device behavior using atomistic simulations based on the self-consistent solution of the Poisson and Schroedinger equations within the NEGF formalism. We show that the concept works, but bandgap opening is not strong enough to suppress band-to-band tunneling in order to obtain a sufficiently large Ion/Ioff ratio for CMOS device operation.