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Fri, Mar 28, 2008

Northrop, USAF Ask GAO To Toss Boeing's KC-X Protest

Boeing Takes Its Fight To Court Of Public Opinion

As expected, the US Air Force and Northrop Grumman Corporation Wednesday filed separate requests to dismiss parts of a protest by Boeing against the award to Northrop of the $35 billion KC-X aerial tanker contract.

Politicians at every level of government in the US have vowed to fight the award to Northrop Grumman, saying Northrop's partnership with the European Aeronautic Defence and Space Company sends what should be US manufacturing jobs overseas.

The KC-45A tanker Northrop plans to build is based on the Airbus A330 airliner. The Air Force filed its own motion with the Government Accountability Office just after 5pm Eastern Time Wednesday, without comment.

"We argue that much of what Boeing complains about was contained in the KC-X request for proposals and should have been questioned, and even perhaps protested, before the submittal of Boeing's final bid," Northrop spokesman Randy Belote told Reuters, regarding his company's separate complaint.

"Filing a protest ... is extremely serious business," he added.

Boeing, meanwhile, appears to believe there is an advantage to be had in encouraging public pressure on politicians. On Wednesday, Boeing took out full-page advertisements in 41 US newspapers, including the Wall Street Journal.

"Repeatedly, fundamental but often unstated changes were made to the bid requirements and evaluation criteria," Boeing alleges in the ads. "These arbitrary changes not only unfairly skewed the results against Boeing; they penalized the warfighter and the taxpayer by selecting an airplane that did not satisfy the Air Force's own bid requirements."

Boeing's protest with the Government Accountability Office, the investigating arm of the US Congress, was filed on March 11. The GAO has 100 days to rule on the matter, putting its deadline at June 19.

FMI: www.globaltanker.com, www.northropgrumman.com/kc45/

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