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• Lawmakers, Boeing unions protest tanker deal in D.C. 4/17/08 • Alabama's top Democrat breaks ranks to defend tanker contract 4/4/08 • Northrop says GAO dismissed its challenge to Boeing's tanker protest 4/2/08 • Air Force skewed tanker deal, Boeing claims 3/19/08 • Congressional allies have a tough task blocking the Air Force tanker deal 3/19/08 • Boeing says Air Force changed tanker rules to favor Northrop, EADS 3/18/08 • Legislature adjourns without Senate vote on Air Force tanker 3/14/08 • Boeing rival says Congress shouldn't interfere in Air Force tanker award 3/13/08 • Boeing formally protests Air Force tanker award 3/11/08 • Boeing sets stage for protest of tanker award 3/10/08 • Boeing protests tanker decision 3/10/08 • Boeing still has ‘significant’ concerns on tanker bid 3/7/08 • Boeing unions call for Congress to block tanker contract 3/3/08 • Boeing party turns into wake 3/1/08 • Q&A on the Air Force tanker decision 3/1/08

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Northrop files motion to dismiss Boeing's tanker protest

By Joelle Tessler
Associated Press

WASHINGTON -- Northrop Grumman Corp. filed a motion Wednesday to dismiss the bulk of Boeing Co.'s protest of a $35 billion Air Force contract awarded to Northrop and European Aeronautic Defence and Space Co.

Los Angeles-based Northrop asked the Government Accountability Office to dismiss significant chunks of what it called Boeing's "PR-plated" protest, which was filed on March 11.

The GAO has 100 days from that date to issue a decision. Northrop's request is not expected to delay that process.

In a statement, Northrop said it wants to "clear the air and afford the GAO the opportunity to do its job without distraction."

Northrop argues in its filing that many of Boeing's claims to the GAO come too late. Northrop says Boeing should have raised these concerns with the Air Force before submitting its final tanker proposal.

To bolster its protest, Chicago-based Boeing launched an aggressive public relations campaign in recent weeks to overturn the Air Force contract for 179 aerial refueling tankers. That PR push gained momentum on Capitol Hill, fueled by lawmakers from Washington, Kansas and other states that would have gained jobs if Boeing won.

The tanker deal is the first of three Air Force contracts worth as much as $100 billion to replace its fleet of nearly 600 refueling tankers the next 30 years. As the winners of the first contract, Northrop Grumman and EADS, parent of Boeing rival Airbus, will be in a strong position to win the follow-on awards.

Boeing maintains that pressure from Capitol Hill and the Northrop Grumman/EADS team ultimately led the Air Force to pick the larger plane even though it had originally asked for a medium-sized tanker. The Boeing protest also argues that the Air Force lost sight of the original mission for the tanker fleet -- letting planes refuel without landing -- by choosing a larger tanker that could carry more passengers and cargo.

Air Force officials said they choose the EADS/Northrop tanker, which is based on the Airbus 330 commercial plane, in large part because its size will enable it to carry more fuel, cargo and passengers.

In addition, Boeing charges that the Air Force changed its requirements to accommodate the bigger tanker.

In a statement released Wednesday, Boeing said it opposes "any effort to stop an unbiased review" of the tanker competition.

"Any effort to prevent the GAO from finding answers to why unstated changes were made to the bid requirements and evaluation criteria should be questioned," the company said. "The American taxpayer and warfighter deserves answers that can only happen if the process is allowed to continue."

Boeing shares rose 40 cents to $76.30 Wednesday. Northrop's shares fell 52 cents to $78.36