Tanker update: Boeing disappointed, reviews options
Published 8:03 am Thursday, April 1, 2010
The Boeing Co. is reviewing its options following the Air Force’s decision to extend the deadline in its tanker contest to accommodate EADS.
“We are deeply disappointed with EADS-Airbus efforts to further delay this vital warfighting program and tilt the U.S. procurement process in its favor,” Boeing said in a statement released this morning.
Yesterday, the Air Force said it would bump back the deadline for bids for a $35 billion tanker contract if Boeing’s rival, EADS, asked. Pentagon spokesman Geoff Morrell said the Air Force would move the deadline to July 9 from May 10, a 60-day extension, should EADS formally request it.
EADS’ partner, Northrop Grumman, dropped out of the contest March 8, leaving EADS to decide whether to go it alone. The European parent company of Airbus, EADS had been asking for a 90-day extension as the “minimum” amount of time needed to submit a bid.
Today, Boeing said it does not see a “legitimate reason” for granting an extension.
“We believe an extension that favors any individual competitor does not further the goal of ensuring fair competition,” Boeing said.
In light of the Pentagon’s decision and a recent trade ruling against Airbus, Boeing said it will ” review all of our options for going forward.”
Those options include lodging a protest with the Government Accountability Office over the deadline extension. In 2008, Boeing protested when the Air Force initially awarded the contract to EADS and Northrop. The GAO found numerous flaws with that contest leading the Pentagon to throw out the contract with Northrop.
This is the Air Force’s third attempt at replacing its KC-135 tankers.
