WASHINGTON (AP) — Seven years and two jail convictions later,
the Pentagon on Wednesday unveiled its latest attempt to get a $35
billion contract for refueling planes off the ground.
But within moments, the proposal was at risk of a crash and burn
after a major contractor considered withholding its bid because it
believed the terms unfairly favored its competitor.
And with thousands of jobs possibly at stake for Alabama, the
state’s two senators weighed in as well, saying the latest proposal
appeared to do little to satisfy Northrop Grumman Corp.’s concerns
that the terms were skewed against its larger, more expensive
plane.
“It is an illusion of a fair competition in which the warfighter
and the taxpayer lose,” said Sen. Richard Shelby, R-Ala.
The Pentagon’s quest to buy its own fleet of tanker planes is a
tale of political wrangling, corporate food-fights and unethical
backdoor dealings that seems never-ending.
Since 2003, the Pentagon has tried twice, and failed twice, to
award a contract to replace its Eisenhower-era fleet of tankers
that refuel military planes in-flight. Most recently, a deal
awarded to Northrop Grumman was overturned on appeal.
In 2004, a Boeing victory was nixed after an ethics scandal
resulted in prison terms for a former company executive and a
former Air Force official. The two were accused of discussing a job
for the Air Force official while she was still overseeing billions
of dollars of Boeing’s business for the service.
On Wednesday, the Pentagon tried again and publicly released its
final bid request for the job. The bid involves building 179
tankers, but the job could be expanded. A final contract is to be
awarded in September.
Northrop said in a statement it would review the complex proposal
before commenting. A Northrop pullout would leave Boeing Co. as the
lone bidder on one of the most protracted and expensive contracts
in Pentagon history.
Sen. Jeff Sessions, R-Ala., said: “At this point I can only say
that I’m disappointed.”
The Pentagon’s senior leaders on Wednesday defended the
proposal.
“We believe that both offers are in a position to win this
competition,” Air Force Secretary Michael Donley said.
Added Deputy Defense Secretary Bill Lynn: “We think we’ve put
forward a balanced and fair competition.”
Politics has factored in heavily into the debate because the
outcome will mean thousands of jobs. Shelby and Sessions support a
win by Northrop because it would translate into as many as 5,000
jobs in their home state, including 1,500 in Mobile, where the
tanker would be assembled.
While Shelby and Sessions said they were pessimistic that Northrop
would bid for the contract, Boeing supporters cheered.
“I’m pleased with what I heard,” said Democratic Rep. Jay Inslee of
Washington state, where Boeing plans to build its tankers. “As far
as the specifics of the proposal, we’re very much in the game.”
Lynn declined to say what the Pentagon would do if it’s faced with
only one contract bid for the program.
“When we get to that point we’ll address that question,” he told
reporters. “I don’t want to go beyond the statement that we have. …
We are hoping that we don’t have to.”
Last fall, Northrop said it would drop out without significant
changes to the criteria. It has teamed with the European maker of
Airbus to compete with Boeing. That partner, Paris-based European
Aeronautic Defence & Space Co., has seen the deal as essential to
breaking into the lucrative U.S. defense contracting market.
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