On That Tanker Deal… Not So Fast

We reported here last week that a Northrop-Grumman/EADS coalition was the surprise winner over Boeing in the competition for the Air Force’s new tanker. It seems the push backfrom the Hill has already commenced:

At a sometimes emotional hearing of the House Appropriations Subcommittee on Defense, members expressed worries that the decision would imperil U.S. jobs, defense industrial capability and even sensitive technology… Tiahrt was among the senior members of the panel from states where the Boeing tanker would be built. Their complaints were echoed by several other members who do not have a direct local connection to either bidder. While the panel has yet to decide what, if anything, it will do to affect the deal, there was no mistaking its “Buy American” sentiment.

To date, no legislation has been introduced to force a re-examination of the deal, but that’s not really the point. The rhetoric from Capitol Hill is designed to demonstrate to Boeing — and their constituent employees — that the lawmakers will likely lend support to a challenge, if the aircraft manufacturer chooses to bring one (highly likely). Another fact that has come to light which may encourage Boeing to contest the award is the news that France is trying to lock U.S. firms out of the European defense market. On the subject of a potential challenge, defense analyst Loren Thompson encourages Boeing to think twice:

…”Northrop Grumman’s victory was not a close outcome.” While both Boeing and Northrop Grumman satisfied requirements established by the Air Force, Northrop was clearly the better buy. With Northrop, the military could have “49 superior tankers operating by 2013,” Thompson said, while Boeing’s proposal would give it “only 19 considerably less capable planes” by then.

Boeing will reportedly be ‘debriefed’ on March 7, when the Air Force explains why the firm’s bid fell short. We should learn soon thereafter whether the final chapter has been written on this deal, or whether the saga will continue–further delaying the production of badly-needed aircraft.

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