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<< Previous   of   Next >>   ADVERTISEMENT   CONTACT THE HERALD Mike Benbow, Business Editor benbow@heraldnet.com   Published: Friday, June 27, 2008 Alabama senator blocks tanker legislation Lawmaker: Boeing’s arrogance is 'breathtaking' Michelle Dunlop Herald Writer A U.S. senator from the state where Northrop Grumman and EADS would build their Air Force refueling tanker has blocked legislation calling for a re-compete of the flawed contract. Sen. Jeff Sessions, R-Ala., put a hold on a bill introduced yesterday by supporters of the Boeing Co., which lost the $35 billion Air Force bid given to Northrop. Boeing successfully protested the contract to government regulators, who found “significant errors” in the Air Force’s contest and suggested the deal be re-opened. Boeing backers had drafted legislation that would have withheld funds for the tanker if the Air Force did not re-bid the contest or award it to Boeing. Boeing would assemble its KC-767 in Washington and install military applications in Kansas. On Thursday, members of the Kansas delegation introduced the KC-X Tanker Recompete Act in both the U.S. House and Senate. “The fastest way for the Air Force to get a new tanker is to award the contract to Boeing," said Sen. Sam Brownback, R-Kan., in a statement. "If the Air Force instead chooses to rebid the contract, this legislation would ensure a new competition assesses all of the relevant factors, including subsidies and foreign corruption. Only a thorough and complete assessment of tanker proposals will prevent further delays in the tanker replacement program." Rep. Dave Reichert, R-Wash., was a co-sponsor of the bill in the House. On Friday, Sessions put a hold on the bill in the Senate. “This legislation would take an unprecedented step of overriding the entire competition, and I strongly object,” said Sessions, in a prepared statement. “I don’t think we politicians should start awarding $35 billion defense contracts from the floor of the U.S. Senate. We must stay committed to the integrity of the competition and keep politics out of this process.” The Government Accountability Office sustained Boeing’s protest of the contract last week and released a detailed report explaining its reasoning on Wednesday. The GAO said Boeing had a “substantial chance” of winning the contract replacing 179 aerial refueling tankers had it not been for Air Force errors. The Air Force has about 60 days to respond to the GAO’s ruling. However, it does not have to comply with the GAO’s recommendations. Defense Secretary Robert Gates has said he will be involved in determining the Air Force’s next move. Sen. Patty Murray, D-Wash., has asked for a meeting with Gates to learn what the Pentagon plans to do. Rep. Jo Bonner, R-Ala., said that Boeing and its supporters were trying to force the Air Force into settling for the “second best” plane. “Boeing desperately needs this contract to keep the 767 production line open,” Bonner said, in a press statement. “Some call the 767 a dinosaur. In contrast, the A330, on which (Northrop and EADS’ KC-30) is based, is still a bestseller in commercial markets worldwide.” Bonner said that Boeing and its “foot soldiers” in Congress want a competition in which only Boeing can win. “The company’s sense of entitlement and arrogance are breathtaking,” Bonner said.

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