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Mon, Apr 06, 2009

Carter's Nomination For DoD In Holding Pattern On KC-X Decision

Republican Senators Want Resolution On Tanker Deal

Ashton Carter, President Obama's nominee to become the Pentagon's next acquisition chief, saw his nomination stalled last week after two Republican senators raised concerns about the stalled KC-X contract deal for a new Air Force tanker.

Citing unnamed sources, Defense News reports Alabama Senators Richard Shelby and Jeff Sessions threatened to place holds on Carter's nomination process, to force Defense Secretary Richarg Gates' hand on ruling on whether Boeing or a team comprised of Northrop Grumman and European defense conglomerate EADS should be awarded the contract, worth as much as $40 billion. If selected, the Northrop/EADS KC-30A would be built in Mobile -- hence the senators' impetus.

As ANN reported, the KC-30A won the last full round of bidding in February 2008... but that decision was later tossed out after the Government Accountability Office upheld a protest from Boeing, and ruled the USAF showed preferential treatment in awarding the contract to the KC-30. A new contract proposal has been stalled ever since, ostensibly to give the new presidential administration time to sort things out.

In separate letters, Shelby and Sessions both demanded Gates take all steps to ensure a "fair and competitive" bidding process with KC-X does go out for rebid. They also noted such a competition would seemingly in favor of the KC-30, saying it represents the best value for the US Air Force.

"It is of the utmost importance that the new tanker competition be conducted in an open and transparent manner based on a best value process," Shelby wrote in an April 3 statement. "Before the new Request for Proposal is issued, we should have every assurance from Dr. Carter that the Department of Defense will proceed fairly to ensure our war fighters receive the most capable tanker possible."

Sessions added, "I still have some unanswered questions about a commitment to a fair and open tanker competition."

It's still unclear at this time what effect, if any, the senators' move had on Gates' decision on KC-X. In any case, Carter will have to wait until April 20 to resume his confirmation hearing... as Congress is now in recess.

FMI: www.northropgrumman.com/kc45, www.af.mil, www.defenselink.mil, www.newglobaltanker.com

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