Boeing: Air Force miscalculated tanker costs

[unhappycamper]

Boeing: Air Force miscalculated tanker costs
The Associated Press
Posted : Friday Jun 13, 2008 6:20:54 EDT

The Air Force has conceded it chose the more expensive option in awarding a $35 billion contract for refueling tankers to a team led by Northrop Grumman Corp. instead of Boeing Co., the companies said Thursday.

Northrop acknowledged Boeing’s assertions that its proposal included cheaper life cycle costs for the tankers. The Air Force said it cannot legally comment on the tanker proposals, the evaluation process or its selection decision. In a statement, however, the Air Force said it “stands by its process and its decision.”

Boeing’s action is the Chicago-based company’s latest attempt to show that the Air Force’s award to European Aeronautic Defence and Space Co. — parent company of its rival Airbus — and Northrop was unfair. The disclosure comes days before the Government Accountability Office is set to rule on Boeing’s protest of the deal.

Although the Air Force is not bound by the GAO decision, any finding of error with the competition is certain to give ammunition to Boeing’s supporters in Congress as they seek to block or overturn it.

“We have been saying for months now that errors had to be present in this contract award,” said Rep. Todd Tiahrt, a Kansas Republican who represents a district where Boeing would do much of its tanker work. “This is strong evidence that the tanker contract should be re-competed.”


Rest of article at: http://www.airforcetimes.com/news/2008/06/ap_boeing_tanker_fight_061208/