by Aamer Madhani
Any day now, the Pentagon is expected to announce the winner of a long-awaited $40 billion contract to build 179 air-to-air refueling tankers for the Air Force.
The two competitors, Chicago-based Boeing Co. and a team from Northrop Grumman and the European Aeronautic Defense and Space Co., are vying for the lucrative contract to replace a decrepit fleet that dates back to the Eisenhower era.
But the forthcoming announcement may just mark another chapter in the ongoing battle for the mammoth military contract that has the potential of ballooning to more than $100 billion in sales for the winner.
Boeing would make its version of the KC-767 tanker at Everett, Wash., and then fly them to Wichita, Kan. for the final conversion. The Northrop-EADS group would build its version, a KC-30 tanker, in Mobile, Ala.
Many defense analysts expect the losing company or Congressional delegation to appeal the decision with the Government Accountability Office, a move that would further delay a process that date backs to 2001.
Boeing had previously won the contract, but Congress scrapped the offer after it learned that Boeing hired a former Air Force acquisitions official who gave the company preferential treatment before leaving the Air Force.
Boeing is the heavy favorite to win the contract again, according to defense analysts. But Northrop-EADS has put up a spirited fight, and the Alabama Congressional delegation has lobbied hard to win the project.
Earlier today, Gen. T. Michael Moseley, chief of the Air Force, called on the loser to consider what a drawn-out appeal would mean to the service.
“This is not about lawyers and companies,” Moseley said “This is about operational capability and fielding capability for the country. So if it we get a long, drawn out protest, we still operate 44-year old airplanes longer. To me that’s a big deal. It’s a big deal for the people I ask to get in the airplane. It’s a big deal for the people that I ask to take the airplane to combat….From a service chief’s perspective, I would ask them to think about the country and think about the people that fly the plane.”