Published: Wednesday, March 11, 2009
Obama suggests delay for tankers; state delegation skeptical
EVERETT -- The Obama administration recently dealt some shock and awe to followers of the Air Force's aerial refueling tanker saga.
In his budget suggestions to the Pentagon, President Obama implied the lucrative contract to replace the Air Force's aging tanker fleet could be delayed by five years. Often called the Pentagon's top acquisition priority, the tanker competition between the Boeing Co. and Northrop Grumman was expected to kick off again this spring.
Surprise and skepticism greeted the president's recommendation on Tuesday.
"We were surprised. We haven't received any information about a possible delay," said Bill Barksdale, a Boeing spokesman on the tanker program.
The possible delay first surfaced in a Congressional Quarterly report citing unnamed sources published online late Monday. A list given to the Office of Management and Budget by the White House was later confirmed by Bloomberg News.
But members of Washington state's congressional delegation expressed doubt on Tuesday. In two previous rounds of competition, Boeing offered a tanker based on its Everett-built 767 jet.
"This has always been the top acquisitions priority," said Alex Glass, a spokeswoman with Sen. Patty Murray's office.
Last month, the Air Force's chief of staff Norton Schwartz reiterated the defense agency's commitment to replacing its existing KC-135 tanker fleet. And Rep. John Murtha, D-Penn., who serves as chairman of a defense appropriations subcommittee, said he intends to fund development costs for a new tanker this spring.
Murtha has said he's OK with splitting the contract between Boeing and duo Northrop Grumman and EADS just to move the contract along. But Sen. John McCain, R-Ariz., who nixed Boeing's initial agreement with the Air Force, opposes a split-buy. Some analysts say splitting the contract only creates additional costs for maintaining and operating two different tanker fleets.
Rep. Rick Larsen, D-Wash., who serves on the House Armed Services Committee, hadn't seen the administration's list of proposed defense cuts and program delays.
"We would be very interested in hearing the reasoning" for a delay, said Amanda Mahnke, Larsen's spokeswoman.
Politicians from Alabama, where Northrop and EADS would assemble their tanker, also didn't take kindly to a potential tanker delay. Republican Sen. Jeff Sessions told Congressional Quarterly that he expects Congress to fight a delay. Both Boeing and Northrop backers see the tanker contract as a source of jobs for their states.
Snohomish County executive Aaron Reardon says a delay would hurt the state and national economy.
"Such a delay would only hinder the potential for new jobs and economic recovery in Washington state and nationwide," Reardon said.
Without several new orders, Boeing likely would be finished building its 767 line in five years, raising questions about which aircraft the company would offer in a delayed contest. Analyst Scott Hamilton, with Leeham Co., wasn't ready to speculate about a switch in proposed planes, saying he can't imagine the delay will stand.
"It just doesn't make sense," he said.
In his budget suggestions to the Pentagon, President Obama implied the lucrative contract to replace the Air Force's aging tanker fleet could be delayed by five years. Often called the Pentagon's top acquisition priority, the tanker competition between the Boeing Co. and Northrop Grumman was expected to kick off again this spring.
Surprise and skepticism greeted the president's recommendation on Tuesday.
"We were surprised. We haven't received any information about a possible delay," said Bill Barksdale, a Boeing spokesman on the tanker program.
The possible delay first surfaced in a Congressional Quarterly report citing unnamed sources published online late Monday. A list given to the Office of Management and Budget by the White House was later confirmed by Bloomberg News.
But members of Washington state's congressional delegation expressed doubt on Tuesday. In two previous rounds of competition, Boeing offered a tanker based on its Everett-built 767 jet.
"This has always been the top acquisitions priority," said Alex Glass, a spokeswoman with Sen. Patty Murray's office.
Last month, the Air Force's chief of staff Norton Schwartz reiterated the defense agency's commitment to replacing its existing KC-135 tanker fleet. And Rep. John Murtha, D-Penn., who serves as chairman of a defense appropriations subcommittee, said he intends to fund development costs for a new tanker this spring.
Murtha has said he's OK with splitting the contract between Boeing and duo Northrop Grumman and EADS just to move the contract along. But Sen. John McCain, R-Ariz., who nixed Boeing's initial agreement with the Air Force, opposes a split-buy. Some analysts say splitting the contract only creates additional costs for maintaining and operating two different tanker fleets.
Rep. Rick Larsen, D-Wash., who serves on the House Armed Services Committee, hadn't seen the administration's list of proposed defense cuts and program delays.
"We would be very interested in hearing the reasoning" for a delay, said Amanda Mahnke, Larsen's spokeswoman.
Politicians from Alabama, where Northrop and EADS would assemble their tanker, also didn't take kindly to a potential tanker delay. Republican Sen. Jeff Sessions told Congressional Quarterly that he expects Congress to fight a delay. Both Boeing and Northrop backers see the tanker contract as a source of jobs for their states.
Snohomish County executive Aaron Reardon says a delay would hurt the state and national economy.
"Such a delay would only hinder the potential for new jobs and economic recovery in Washington state and nationwide," Reardon said.
Without several new orders, Boeing likely would be finished building its 767 line in five years, raising questions about which aircraft the company would offer in a delayed contest. Analyst Scott Hamilton, with Leeham Co., wasn't ready to speculate about a switch in proposed planes, saying he can't imagine the delay will stand.
"It just doesn't make sense," he said.
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