Defense Secretary Robert Gates said Thursday that he has made no decision on whether the Air Force should re-bid the $35 billion refueling tanker contract found to be riddled with mistakes.
The Government Accountability Office released a copy of its 67-page ruling against the Air Force on Wednesday. The congressional investigators sided with the Boeing Co., which protested the Air Force’s award of the tanker deal to Northrop Grumman and EADS. The GAO had announced its decision last week but provided on Wednesday a detailed account of their decision, which slammed the process as unfair.
Boeing had planned to assemble its KC-767 tanker in Everett and protested its loss to the GAO in mid-March after citing inconsistencies in the Air Force’s approach. Northrop and EADS plan to build their KC-30, based off an Airbus A330 jet, in Mobile, Ala.
Gates said he is meeting with other Pentagon leaders to determine what to do in the wake of the GAO report that found the Air Force failed to evaluate both refueling tanker proposals based on the same merits. It said the Air Force repeatedly offered unfair preference to the team of Northrop Grumman and Airbus parent European Aeronautic Defence and Space Co. over the competing team from Boeing Co.
Still, Gates said he doesn’t think it is appropriate for his office to take over the contract and remove it from Air Force control.
“We clearly need to have an approach that has the confidence of the Congress,” Gates said, adding that officials are looking at several options.
Asked if he still has confidence in the Air Force, including Air Force Assistant Secretary Sue C. Payton, Gates offered only a lukewarm assessment.
“We’ve clearly had problems with the tanker contract,” Gates said. “And this time around is not the first time, obviously. And so, I think I need to get a better feel for the GAO report and for the criticisms and the nature of the criticisms that they have made.”
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