February 24, 2010 in City

Possible end seen in fight over new air tankers

Supporters of Boeing rival pessimistic on staying in hunt
Ben Evans Associated Press
 
Tags:air tankersBoeingBoeing Co.Department of DefenseNorthrop Grumman Corp.Pentagon

Senators respond

Sen. Maria Cantwell released a statement Tuesday, which included: “I am pushing to make sure the Department of Defense acts with urgent focus to correct past mistakes in the tanker competition. U.S. forces, including the men and women at Fairchild Air Force Base, WA, need new air refueling tankers to effectively conduct their vital national security responsibilities. I am seeking the best tanker possible for American warfighters as well as American taxpayers. At stake across the United States are some 50,000 jobs, many of them in Washington state.”

Sen. Patty Murray today said in a press release: “Given a fair shot, Washington state’s workers will bring home this contract. We have the skills, the technology, and the experience of having built the only combat-ready tanker to prove it. Our workers have done it before and I know they’re ready to do it again. With today’s Request for Proposal we now have the process in place that will allow our workers to deliver for our economy, military, and country. Our state and nation need this contract now more than ever. The bottom line is that the tanker brings jobs.”

WASHINGTON — Senior Pentagon officials say their latest $35 billion plan to acquire refueling planes is fair.

On Wednesday, the Air Force publicly released its final bid request for the job. But supporters of Northrop Grumman Corp. say the proposal does little to satisfy concerns that the terms are skewed against its larger, more expensive plane.

If Northrop drops out of the competition, Boeing Co. would likely be the only bidder.

Air Force Secretary Michael Donley told reporters that the Pentagon believes “both offers are in a position to win.”

Deputy Defense Secretary Bill Lynn called the proposal “balanced and fair.”

Northrop said in a statement it would fully review the complex bid request before commenting.

The company said last fall it would drop out without significant changes to the criteria. It has teamed with the European maker of Airbus to compete with Boeing. That partner, Paris-based European Aeronautic Defence & Space Co., has seen the deal as essential to breaking into the lucrative U.S. defense contracting market.

“At this point I can only say that I’m disappointed,” said GOP Sen. Jeff Sessions of Alabama, where Northrop would build a major assembly plant in Mobile if it wins the contract. “It appears that the fundamental document has not been changed.”

Rep. Mike Rogers, R-Ala., who joined Sessions in a briefing by Pentagon leaders, agreed. “I don’t think it looks promising,” he said.

Boeing supporters emerged from the briefing optimistic.

“I’m pleased with what I heard,” said Rep. Jay Inslee, a Democrat from Washington, where Boeing plans to build its tankers. “As far as the specifics of the proposal, we’re very much in the game.”

The Pentagon needs to replace its Eisenhower-era fleet of tankers that refuel military planes in-flight. It has tried twice, and failed twice, to award a contract. A deal awarded to Northrop in 2008 was overturned on appeal. In 2004, a Boeing victory was nixed after an ethics scandal that resulted in prison terms for a former company executive and a former Air Force official.

Lawmakers have become intensely involved in the competition because it could mean thousands of jobs for their states. They said the Pentagon outlined a timeframe Wednesday for bids to be submitted within 75 days and a final contract to be awarded in September.

The initial bid involves building 179 tankers, but the job could be expanded.

© Copyright 2010 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Recent stories in City
One comment on this story so far. Add yours!

  • Hank_Tingler on February 24 at 11:20 a.m.

    Never forget Patty Murrays try to make this a no-bid lease deal for $6 B I L L I O N dollars and then was caught with her hand in the secret cookie jar and the contract was only $3 Billion.

    By Patty Murray’s actions the $3 Billion has ballooned into $35 Billion. Good job, now about those earmarks….

You must be logged in to post comments.
Please create a profile or log in here.