US Lawmakers Urge Pentagon to Reopen Tanker Bids

02 July 2008


Scores of members of the US House Friday urged the Pentagon to reopen competition for a disputed Air Force aerial tanker contract awarded to Northrop Grumman Corp and Europe's EADS over Boeing Co.

"We write to urge you to ... reopen a fair competition in a manner that corrects the 'significant errors' identified" by congressional investigators, lawmakers wrote in a letter to be sent later in the day to Air Force Acting Secretary Michael Donley.

A spokeswoman for Representative Rosa DeLauro, the Connecticut Democrat spearheading the effort, said about 70 House members planned to sign the letter.

DeLauro's constituents have a big stake in the outcome of the deal. Pratt & Whitney, headquartered in Connecticut, would provide engines for the refueling planes if Boeing won the contract. Pratt & Whitney is owned by United Technologies .

The Pentagon awarded the $35bn program to Northrop on Feb. 29, angering Boeing's backers on Capitol Hill who are trying to defend jobs in Washington state, Kansas and other states.

Boeing protested the award and on 18 June the Government Accountability Office, Congress' investigative arm, said the Air Force had made "significant errors" in the selection process and urged the military to rebid the tanker work.

Northrop has argued that it deserves to retain the contract but the Pentagon is feeling pressure from several corners of Capitol Hill.

Defence Secretary Robert Gates said Thursday he had not yet decided whether to reopen the competition but, citing the need for Congress' confidence in the procurement process, said he was looking at "several options."

Besides the House members' letter, the House Oversight and Government Reform Committee has scheduled a 15 July hearing on the contract. The GAO's acting comptroller, Gene Dodaro, has been invited to testify.

And several lawmakers have held open the possibility of pursuing legislation to block Northrop from getting the contract.

In a Senate speech Thursday, Democratic Senator Patty Murray of Washington, where Boeing has large operations, said, "I will make it clear the Air Force cannot go forward with this contract and that I expect it to follow the GAO's recommendations."

DeLauro's letter warned, "In light of the seriously flawed review process that appears to have taken place with this award, we believe that anything less than a reopened competition ... will only further call into question your service's acquisition process."

The huge contract would pave the way for the Air Force to buy over the next 15 years 179 tanker aircraft that refuel warplanes during flight.

By Richard Cowan, Reuters


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