Published: Wednesday, October 28, 2009
New concerns in tanker contest
WASHINGTON — Lawmakers from Washington state to Alabama are raising serious concerns over a troubled $35 billion tanker competition between rivals Boeing Co. and Northrop Grumman Corp.
In separate letters, both Sen. Richard Shelby, R-Ala., and Rep. Norm Dicks, D-Wash., representing competing interests and thousands of jobs in their districts, expressed concerns over the Air Force’s draft request for bids to build 179 aerial refueling tankers that was issued last month.
Los Angeles-based Northrop and its partner, Airbus parent European Aeronautic Defense and Space Co. NV, are competing against Chicago-based Boeing for the third time to replace the aging refueling tankers.
Should Northrop and EADS win the lucrative deal, a new plant will be built in Mobile, Ala., while states such as Florida and West Virginia could also stand to gain. If Boeing lands the award, Washington, Kansas and other states would benefit from a boost in jobs.
Boeing supporter Dicks is questioning the Air Force’s decision to cite a specific fuel offload rate in its bid request, which happens to be the same rate that Northrop has advertised as being able to offer, when the rate hadn’t been specified in earlier drafts.
Dicks and other Washington state lawmakers also are concerned that the Air Force won’t be required to consider the World Trade Organization’s interim ruling last month that found Airbus had received illegal subsidies in the form of European Union loans. Dicks thinks that shows a bias for rival Northrop’s offering, according to his letter to Shay Assad, director of defense procurement, on Tuesday.
Dicks warned that unless the Pentagon fixed the draft it would risk the “same disastrous outcome that doomed the previous source selection.”
On Monday, Northrop and EADS gained additional support for their tanker with the formation of a multi-state aerospace group. The “Aerospace Alliance” rally in Alabama attracted 500 participants, including the governors of Louisiana, Alabama and Mississippi.
Florida also sent political representatives.
Washington state has its share of organized aerospace backers, including the Washington Aerospace Partnership, which supports Boeing’s tanker efforts.
For his part, Shelby, along with seven other Alabama lawmakers, sent a letter to Defense Secretary Robert Gates on Monday, claiming the Air Force’s request was “fundamentally flawed.”
Shelby, a Northrop supporter, said the draft omitted risk when evaluating whether either bidder can stay on schedule and keep its promise on price.
In separate letters, both Sen. Richard Shelby, R-Ala., and Rep. Norm Dicks, D-Wash., representing competing interests and thousands of jobs in their districts, expressed concerns over the Air Force’s draft request for bids to build 179 aerial refueling tankers that was issued last month.
Los Angeles-based Northrop and its partner, Airbus parent European Aeronautic Defense and Space Co. NV, are competing against Chicago-based Boeing for the third time to replace the aging refueling tankers.
Should Northrop and EADS win the lucrative deal, a new plant will be built in Mobile, Ala., while states such as Florida and West Virginia could also stand to gain. If Boeing lands the award, Washington, Kansas and other states would benefit from a boost in jobs.
Boeing supporter Dicks is questioning the Air Force’s decision to cite a specific fuel offload rate in its bid request, which happens to be the same rate that Northrop has advertised as being able to offer, when the rate hadn’t been specified in earlier drafts.
Dicks and other Washington state lawmakers also are concerned that the Air Force won’t be required to consider the World Trade Organization’s interim ruling last month that found Airbus had received illegal subsidies in the form of European Union loans. Dicks thinks that shows a bias for rival Northrop’s offering, according to his letter to Shay Assad, director of defense procurement, on Tuesday.
Dicks warned that unless the Pentagon fixed the draft it would risk the “same disastrous outcome that doomed the previous source selection.”
On Monday, Northrop and EADS gained additional support for their tanker with the formation of a multi-state aerospace group. The “Aerospace Alliance” rally in Alabama attracted 500 participants, including the governors of Louisiana, Alabama and Mississippi.
Florida also sent political representatives.
Washington state has its share of organized aerospace backers, including the Washington Aerospace Partnership, which supports Boeing’s tanker efforts.
For his part, Shelby, along with seven other Alabama lawmakers, sent a letter to Defense Secretary Robert Gates on Monday, claiming the Air Force’s request was “fundamentally flawed.”
Shelby, a Northrop supporter, said the draft omitted risk when evaluating whether either bidder can stay on schedule and keep its promise on price.
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