Boeing weighs protest vs US tanker deal
Sunday, March 9, 2008
BOEING Co said on Friday it would seriously consider challenging a US Air Force snub that gave a US$35 billion ($48.5 billion) aerial-refueling programme to a team that includes its European archrival Airbus.
Company executives said they had "significant concerns" about the contract decision after an Air Force briefing on the victory by a team made up of Northrop Grumman Corp and Airbus parent EADS.
These concerns include "evaluation of the bids and the ultimate decision", said Mark McGraw, programme manager for Boeing's tanker, based on the company's 767 commercial airliner.
"What is clear now is that reports claiming that the Airbus offering won by a wide margin could not be more inaccurate," he added in a statement.
Chicago-based Boeing said it would take the next few days to evaluate the data presented by the Air Force and will give "serious consideration to filing a protest".
A week ago the Air Force announced the winner in the US$35 billion programme to supply 179 tankers over 15 years.
Tankers are used to extend warplanes' range by refueling them in mid-air.
US Air Force Secretary Michael Wynne told a congressional panel on Wednesday that the Northrop-EADS tanker was "clearly a better performer".
Ultimately, the Air Force plans to replace more than 500 of its current KC-135 tankers, built by Boeing and averaging 47 years old.
Boeing now has 10 calendar days to file a protest with the Government Accountability Office (GAO), the audit and investigative arm of Congress. The GAO would have 100 days to make a recommendation to the Air Force. If it found a problem in the selection process, it could urge a new competition be held.
Reuters
Company executives said they had "significant concerns" about the contract decision after an Air Force briefing on the victory by a team made up of Northrop Grumman Corp and Airbus parent EADS.
These concerns include "evaluation of the bids and the ultimate decision", said Mark McGraw, programme manager for Boeing's tanker, based on the company's 767 commercial airliner.
"What is clear now is that reports claiming that the Airbus offering won by a wide margin could not be more inaccurate," he added in a statement.
Chicago-based Boeing said it would take the next few days to evaluate the data presented by the Air Force and will give "serious consideration to filing a protest".
A week ago the Air Force announced the winner in the US$35 billion programme to supply 179 tankers over 15 years.
Tankers are used to extend warplanes' range by refueling them in mid-air.
US Air Force Secretary Michael Wynne told a congressional panel on Wednesday that the Northrop-EADS tanker was "clearly a better performer".
Ultimately, the Air Force plans to replace more than 500 of its current KC-135 tankers, built by Boeing and averaging 47 years old.
Boeing now has 10 calendar days to file a protest with the Government Accountability Office (GAO), the audit and investigative arm of Congress. The GAO would have 100 days to make a recommendation to the Air Force. If it found a problem in the selection process, it could urge a new competition be held.
Reuters
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