Spokesman Says Gates Will Announce KC-X Strategy 'Very Soon'

With Defense Secretary Robert Gates expected to announce his strategy on dealing with a controversial US Air Force aerial tanker decision "very soon," one lawmaker warns of dire consequences if Pentagon officials stick to their guns and keep the contract in the hands of a partnership between Northrop Grumman and EADS.

Pentagon spokesman Bryan Whitman told Bloomberg last week Gates has been "doing some consulting" with experts "and giving his own analysis" of the Pentagon's options, though he would not say when Gates will chime in officially on the matter. That statement could come ahead of a Thursday meeting by a House Armed Services Committee panel investigating the February 29 decision to award the tanker program contract to Northrop/EADS.

"I think that very soon -- not wanting to put any time frames on it -- but very soon we'll be talking about what we think is the best way to proceed," Whitman said last week.

As ANN reported, the Government Accountability Office last month issued a non-binding report, stating the Air Force made "significant errors" in handing the lucrative deal to replace the service's fleet of Eisenhower-era KC-135 tankers to Northrop/EADS, over a bid from American planemaker Boeing.

In addition to revelations the USAF used faulty math in determining the Airbus-sourced KC-45A would be more economical to operate over Boeing's smaller KC-767, the GAO also determined the Air Force may have held Northrop's hand in dealing with some shortcomings of its bid. In one case, USAF officials told Boeing it had met a set of objectives... but later said it had not, after discussions had already closed.

Conversely, the Air Force told Northrop about areas its bid had fallen short on, then gave the company time to alter its proposal.

US Congressman Norm Dicks represents Washington state -- Boeing's home territory -- and is a senior member of the House defense appropriations committee that approves military funding. He warns of dire consequences should Air Force officials ignore the GAO's recommendations, and stay with their choice for a new tanker.

"I have urged them to come up and talk to the hill because if they make a unilateral decision that's wrong, all hell is going to break loose," Dicks said. "There needs to be some consultation. There has been none. [Pentagon Undersecretary for Acquisition] John Young can come up and listen to the members. I have urged this."

Dicks added it's likely the Pentagon will once again open the KC-X bid for competition... "but the form of competition is very important. They need to come up and listen to the members about their concerns and then say what the process going forward is going to be."

FMI: www.af.mil, Read The GAO Decision (.pdf)