WASHINGTON — The Pentagon is in danger of missing a self-imposed deadline to award a politically charged $35 billion deal to Boeing or Northrop Grumman for Air Force refueling tankers ahead of the next administration. Boeing’s recent request for more time leaves the Pentagon with even less room to breathe in replacing a fleet that dates back to the Eisenhower era.
“The government has put this re-competition on a very tight schedule,” said Loren Thompson, a defense consultant for the Virginia-based Lexington Institute. “What you see here is the improbability of conducting a major competition in record time.”
The Defense Department was expected to release its final request for bids as early as Tuesday. But its deadline has continued to slip further past the Aug. 15 target originally provided by the agency — and now could be delayed until September.
The upcoming request should make clear whether Boeing Co. gets its wish for additional time to assemble a bid, after it threatened to leave the competition last week.
Pentagon spokesman Chris Isleib said Tuesday that negotiations were continuing on the tanker program, and a release of the final request for bids has yet to be scheduled.
Industry observers suggest any short-term delays will end up benefiting Boeing, offering the Chicago-based company an opportunity to garner further political support among lawmakers from Washington, Kansas and other states that stand to gain jobs if it lands the award.
Boeing supporter Sen. Patty Murray, D-Wash., said she hopes “this delay means the Pentagon is taking its time to do the right thing” after making major changes to its draft request for proposals on the tanker program.
The aerospace manufacturer lost the deal in February to replace 179 aerial refueling tankers to Northrop Grumman Corp. and its partner, Airbus parent European Aeronautic Defense and Space Co. Boeing filed its protest in March.
The competition was reopened after government auditors found “significant errors” in the Air Force’s decision. The revamped competition — overseen by Pentagon acquisition chief John Young — will focus on eight areas where the GAO found problems.
The deal, one of the largest in Pentagon history, is the first of three contracts worth up to $100 billion to replace nearly 600 refueling tankers over the next 30 years.
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