Air Force concedes Boeing tanker bid was lower
WASHINGTON
Northrop acknowledged Boeing’s assertions that its proposal included cheaper life cycle costs for the tankers. The Air Force said it cannot legally make notes attached the tanker proposals, the evaluation process or its selection settlement. In a statement, however, the Air Force aforesaid it “stands by its process and its decision.”
Boeing’s action is the Chicago-based company’s latest try to show that the Air Force’s judgment to European Aeronautic Defence and Space Co.
Although the Air Force is not bound by the GAO decision, any finding of error with the contest is certain to give powder and shot to Boeing’s supporters in Congress as they search to block or overturn it.
“We have been by-word for months now that errors had to be attentive in this contract award,” said Rep. Todd Tiahrt, a Kansas Republican who represents a district whither Boeing would do much of its tanker drudge. “This is strong evidence that the tanker contract should have being re-competed.”
The new information appears to undermine the Air Force’s original assertion that the Northrop/EADS plain offers cost advantages, according to Boeing.
When announcing the decree in February, the Air Force said the larger size of the Northrop/EADS plane helped tip the balance in its favor since that tanker would have being able to haul again fuel, cargo and troops.
Boeing contends the larger tanker will cost the Air Force more to have influence since it exercise volition be less fuel efficient, and be pleased require the military to strengthen runways and expand hangars.
According to the one and the other Boeing and Northrop, the Air Force initially put the cost to operate the tanker over its lifespan at $108.01 billion for the Northrop plane, compared with over $108.04 billion for the Boeing tanker. Boeing now claims the Air Force miscalculated those costs, although it would not release revised numbers.
In a statement, Northrop said minor errors resulted in a “neglect adjustment” in the operating costs of the two planes, but maintained that its the tanker still provides “the most capability at the in the highest degree overall worth.”
In its statement, the Air Force reported, “any single document, or set of documents, viewed through itself, without the broader context, could easily be misinterpreted.”
The tanker contract is the first of three Air Force deals worth as a great quantity as $100 billion to replace its entire armada of nearly 600 aerial refueling tankers over the next 30 years.
Shares of Chicago-based Boeing rose 81 cents to $74.12 Thursday. Shares of Los Angeles-based Northrop Grumman rose 7 cents to $71.53.
