| HeraldNet - Snohomish County's online news source |
 TUESDAY, FEBRUARY 9, 2010 5:17 pm |
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Tanker becomes more crucial for Boeing Defense chief scuttles talk of split contract; Boeing could see other cuts EVERETT -- The Boeing Co. may feel increased pressure to land an Air Force tanker contract if the Pentagon's proposed budget cuts stand.Boeing could see several of its defense projects cut or scaled back under a budget proposed Monday by Defense Secretary Robert Gates. But Gates said he plans to go forward with a $35 billion contest between Boeing and duo Northrop Grumman and EADS to replace the Air Force's aging KC-135 tankers. In a media briefing, Gates suggested he would be willing to accelerate tanker deliveries by the winning defense contractor. If Boeing won, that could give the company a needed boost in production of its Everett-built 767, on which its tanker is devised, at a time when commercial aircraft production rates are likely to fall. Gates said Monday the Pentagon's weapons strategy will focus on smaller, lower-tech programs more aligned with insurgencies and threats the military faces in Afghanistan, rather than older programs designed for conventional wars. "This budget represents an opportunity, one of those rare chances to match virtue to necessity and ruthlessly separate appetites from real requirements," Gates said of his $534 billion spending plan for the 2010 fiscal year. On Gates' chopping block for Boeing are the company's C-17 cargo planes and its F-22 Raptors, made with Lockheed Martin. The Chicago-based company also could see a halt to some of its development programs, among them a search-and-rescue helicopter and Boeing's bid for a $26 billion transformational satellite. Boeing's airborne laser, which gets mounted on a 747, also could be cut from the defense budget. Gates wants to kick off the tanker contest this summer. The Pentagon called off the competition last year after government auditors found flaws in the process. The Air Force initially had awarded the bid to Northrop and EADS, which would build their tanker in Alabama. The Secretary emphasized his opposition to plans to split the lucrative contract between Boeing and Northrop. Doing so would increase Air Force spending on tanker training, maintenance and logistics, Gates said. "I still believe it is not the best deal for the taxpayer to go with the split buy," Gates said. Rep. John Murtha, D-Pa., chairman of the House Appropriations Defense Subcommittee, has said he may insert language in the spending bill to force a split buy. Murtha fears that another protested award would delay the replacement of tankers already approaching 50 years of age. But Gates remained optimistic about the Air Force's ability to run the competition fairly. If the Pentagon can do that, then its decision should withstand a protest, Gates said. Gates isn't opposed to Murtha's idea to increase tanker production to retire the KC-135s sooner. That could be welcome news for Boeing or Northrop's partner, EADS, the parent company of Airbus. Despite record backlogs, Boeing and rival Airbus have seen a drop in the commercial aircraft business as the global recession pinches air traffic. In the first three months of 2009, Boeing received more cancellations for jets than new orders. And Boeing officials have said the company may need to scale production back in 2010 by as much as 10 percent. Boeing already has said it will cut its work force by 6 percent, slashing 4,500 positions at its commercial airplanes division. Gates expressed concern that Congress might block some of his budget cuts, particularly if it means job losses in a politician's district. Some lawmakers noted Monday that the Pentagon proposals are just a first step in drafting a final spending plan for the next fiscal year. "The buck stops with Congress," said Ike Skelton, D-Mo., chairman of the House Armed Services Committee. Murtha called the proposals an important and overdue attempt to balance want and need at the Defense Department. "However, the committee will carefully review the department's recommendations in the context of current and future threats when we receive the detailed fiscal-year 2010 budget request," Murtha said. The Associated Press contributed to this story. |
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- Plan for I-5 closures this week
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(11) - A tidy lawn could be law in Lynnwood (10)
- Lynnwood sets height limit on grass: 8 inches (5)
- Everett police officers cleared in 2008 shooting death (5)
- 1949 travel aid shows how few places blacks were welcome in Washington (4)
- I-5 bridge joint may give you a jolt, but it isn't damaged (4)
- Everett rethinks boutique wineries (4)
- County archive software paid for but waiting for set-up (3)
- Three politicians who want Gregoire's job in 2012 (3)
- Toyota has powerful D.C. friends (3)
- Edmonds educator, famous announcer dies
- Mill Creek to appeal ruling on annexation
- Through the air, with the greatest of ease
- E-W thriving under new coach
- The path to citizenship
- EUUC puts on ‘Pants & Shoes’
- Wolfpack wins the ‘Battle'
- Lynnwood’s annexation plans OK’d
- Arlington's Cascade Valley Hospital celebrates expansion, national award and 100 years of service
- Business Licences Feb. 2010
- Technology tips for launching your own business
- Business Events Feb. 2010
- Tech Talk: No excuse today for going without a Web site
- State already raising fees and rates that restrict business growth
- Some legislators again targeting people’s initiative petition rights
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