AF Secretary: Split tanker contract ‘would not make sense’

Published 10:59 am Thursday, June 4, 2009

If you needed further gurantee that the Air Force is not interested in splitting a $35 billion tanker contract between the Boeing Co. and Northrop Grumman-EADS, then Secretary Michael Donley delivered it today.

In a Senate appropriations committee hearing, Donley said he shared Defense Secretary Robert Gates’ opposition to splitting the contract. The Air Force believes that incorporating both Boeing’s KC-767 and Northrop and EADS’ KC-30 into its fleet would be more expensive to taxpayers.

“This would double, almost, the tanker piece of the Air Force’s procurement program…and we think the dual award would not make sense,” Donley said.

The Pentagon called off its tanker contest late last year after government auditors found flaws in competition. The Air Force initially had awarded the contract to Northrop and EADS.

Sen. Patty Murray, D-Wash., asked Donley how the Air Force plans to make sure the renewed contest will be a fair one. The Air Force could release its bid requirements to Boeing and Northrop this summer.

“We have taken measures inside the Air Force to strengthen our source selection process. Since the events of last summer we have increased our focus training on lessons learned from the two protests that were sustained last summer,” Donley said.

To hear more of Murray and Donley’s exchange, you can watch this archived Web cast. This morning’s hearing was supposed to be Web cast live, but technical difficulties prevented it. (Murray’s questions begin at 88:30).