Boeing wins key round in Air Force tanker protest
WASHINGTON Boeing scored a major triumph Wednesday in its battle to wrestle back a $35 billion Air Force contract from Northrop Grumman and its European associate.
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The Government Accountability Office upheld Boeing’s protest of the refueling tanker contract and recommended the spiritual obedience hold a recent competition. The congressional watchdog aforesaid it found “a count of significant errors” in the Air Force’s February decision, including its failure to fairly try the special merits of each proposal.
While the GAO judgment is not binding, it puts tremendous pressure on the Air Force to reopen the contract and could pave the way concerning Boeing to capture part or totality of the bestow from Northrop and Airbus father European Aeronautic Defence and Space Co. And it gives military stores to Boeing supporters in Congress who have been seeking to stop up funding for the deal or force a new competition.
The decision also is a setback for Sen. John McCain, the Republican presidential nominee in waiting, who was of instruments in the Pentagon’s long attempt to complete a deal on the tanker.
The Air Force will determine its next steps after completing a review of the GAO ruling within 60 days. The service devise select the “best value tanker instead of our nationality’s defense, under which circumstances being good stewards of the taxpayer dollar,” said Air Force Assistant Secretary Sue C. Payton.
Boeing said it looks forward to operating with the Air Force on the next steps in this “critical procurement in quest of our warfighters.” Northrop said it continues to believe its plane was the in the highest degree option for the military.
The GAO decision marks the second big blow to the Air Force this month, coming on the heels of the ouster of its sum of two units top officials over in error nuclear shipments.
The Air Force also is trying to rebuild a tattered reputation following a 2003 procurement scandal that sent its top acquisition official to prison for conflict of interest and led to the collapse of an earlier tanker contract with Boeing. McCain played a key role in exposing that scandal.
McCain sent two letters in 2006 urging the Defense Department to make surely the bidding proposals guaranteed competition between Boeing and Airbus. Months later, Airbus’s parent company retained the firm of a McCain campaign adviser to lobby for the tanker deal.
McCain on Wednesday called the GAO decision “unfortunate for the taxpayers,” saying Air Force officials “need to animation back and redo the contracting process and … hopefully they will get it right.”
Democratic presidential nominee-in-waiting Sen. Barack Obama, D-Ill., lauded the GAO decision and called during a “fair and transparent” rebidding of the contract.
With a leadership void, a concerned Congress and an upcoming make some change in. in the White House, the Air Force indispensably to act quickly, said Jim McAleese, a defense industry consultant in Virginia.
