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Boeing to Appeal $40B Contract

CEO claims 'serious flaws' in bidding

By Zach Samalin,  Newser Staff

Posted Mar 10, 2008 8:09 PM CDT
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(Newser) – Boeing vowed today to appeal a controversial $40 billion contract to build refueling tankers for the Air Force, the Wall Street Journal reports. "Our team has taken a very close look at the tanker decision and found serious flaws in the process," Boeing CEO Jim McNerney said. The Air Force awarded the contract to Northrop Grumman and Airbus, which ruffled US feathers by planning to build its tankers in France.

An Air Force spokeswoman termed the deal "fair and transparent," but McNerney said Boeing offered "the most capable, lowest-risk, lowest- most probable life cycle cost airplane" bid. Northrop called the bidding "rigorous and deliberative" and said it won for past performance, cost, and other factors. Lawmakers will have 100 days to review Boeing's protest.

Alabama Gov Bob Riley displays a graph showing the differences between KC-X Tanker Capabilities of the Northrop Grumman/EADS proposal and the Boeing proposal during a news conference on the newly awarded Air Force KC-45A tanker program Friday March 7, 2008, in Mobile, Ala. Riley said he knows Boeing is disappointed...
Alabama Gov Bob Riley displays a graph showing the differences between KC-X Tanker Capabilities of the Northrop Grumman/EADS proposal and the Boeing proposal during a news conference on the newly awarded...   (Associated Press)
In this artist's depiction provided by Northrop Grumman Corp., a KC-45A refuels a F-22 Raptor. The Air Force on Friday, Feb. 29, 2008, awarded Northrop Grumman Corp. and a European partner a $35 billion contract to build airborne refueling planes, delivering a major blow to Boeing Co.
In this artist's depiction provided by Northrop Grumman Corp., a KC-45A refuels a F-22 Raptor. The Air Force on Friday, Feb. 29, 2008, awarded Northrop Grumman Corp. and a European partner a $35 billion...   (Associated Press)
Boeing union workers Sandy Hastings, left, of Everett, Wash., and David Henry of Puyallup, Wash., protest the U.S. Air Force's decision to award a fuel tanker contract to Airbus-Northrop Grumman at the Aerospace Machinists Union in Everett, Wash., Friday Feb. 29, 2008.
Boeing union workers Sandy Hastings, left, of Everett, Wash., and David Henry of Puyallup, Wash., protest the U.S. Air Force's decision to award a fuel tanker contract to Airbus-Northrop Grumman at the...   (Associated Press)
Boeing aerospace worker Garth Luark of Edmonds, Wash., protests the U.S. Air Force's decision to award a fuel tanker contract to Airbus-Northrop Grumman at the Aerospace Machinists Union Hall in Everett, Wash., Friday Feb. 29, 2008. (AP Photo/Stephen Brashear)
Boeing aerospace worker Garth Luark of Edmonds, Wash., protests the U.S. Air Force's decision to award a fuel tanker contract to Airbus-Northrop Grumman at the Aerospace Machinists Union Hall in Everett,...   (Associated Press)
A Northrop Grumman billboard advertising Mobile, The future home of the KC-30 is seen Friday Feb 29, 2008 on Interstate 10 alongside Brookley Field Industrial Complex in Mobile, Ala. (AP Photo/Press-Register, John David Mercer)
A Northrop Grumman billboard advertising "Mobile, The future home of the KC-30" is seen Friday Feb 29, 2008 on Interstate 10 alongside Brookley Field Industrial Complex in Mobile, Ala. (AP Photo/Press-Register,...   (Associated Press)
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Boeing will protest Air Force contract with Airbus
Associated Press

Boeing questions Air Force's rationale in contract deal
Bloomberg

 
Boeing • Air Force • contractors • Airbus • Government Accountability Office • EADS • Military-Industrial Complex

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