Sun, Apr 19, 2009
But Boeing Is Still Mum On The Idea
In response to US lawmakers' suggestion that the controversial
bidding process on a replacement fleet of aerial refueling tankers
be resolved by splitting production between contractors, the
European Aeronautic Defense and Space Company CEO indicated he
would likely go along with the idea.
Speaking on behalf of EADS and partner Northrop Grumman, Louis
Gallois said Thursday that as long as they were contracted to build
a minimum of 12 tankers a year to insure support of a proposed new
factory in Mobile, AL, he would be willing to consider sharing the
contract with rival Boeing, the New York Times reported.
As ANN reported, House defense appropriations
subcommittee chairman Rep. John Murtha (D-PA) has proposed
including a provision in a defense bill that would split production
of the new tankers between top bidders Boeing and Northrop
Grumman-EADS as a solution to the ongoing controversy about
replacing the US' aging aerial tanker fleet.
The Air Force selected Northrop Grumman/EADS for the tanker
project last year, but rival bidder Boeing protested the decision,
saying the process was flawed. Bidding was reopened after a
Government Accountability Office agreed with Boeing... but the
selection of a contractor remains in limbo.
Defense Secretary Robert Gates has said the split contract idea
is a mistake that would end up costing taxpayers billions. "I think
it's bad public policy, and I think it's bad acquisition policy,"
Gates said, preferring to opt for reopened bidding this summer and
selection of a single contractor early in 2010.
Hanging in the balance is the economic future of both plane
manufacturers. Boeing has proposed modifying its 767 model if
awarded the tanker contract. Northrop Grumman-EADS plans to use the
Airbus A330 airframe. Boeing stands to lose 10,000 jobs between its
Everett, WA and Wichita, KS plants if it loses the contract - which
would at the same time represent a major victory in the defense
market for Northrop-EADS.
Boeing spokesman William A. Barksdale said his company has not
yet taken an official stance "on which direction our customer
should take" in the proposed contract split.
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