Bidding for US tanker deal to open this summer: Gates

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Boeing says will examine Pentagon budget impact
Boeing said Monday it would examine Defense Secretary Robert Gates's plans for a sweeping overhaul of Pentagon spending to assess its impact on the US aerospace giant. "We will be studying Secretary Gates' announcement for potential impact to Boeing," company spokesman Sean McCormack said in a statement after the defense secretary unveiled plans to "profoundly reform" US military spending. "We appreciate the work of Secretary Gates and his team to initiate a process that will examine the defense priorities for this nation," said McCormack. "Meanwhile, the men and women of The Boeing Company will continue to perform at the highest possible level to deliver the best value to the warfighter and the taxpayer," the spokesman said.

by Staff Writers
Washington (AFP) April 6, 2009
US Defense Secretary Robert Gates said he plans to reopen bidding this summer for a multi-billion contract to build a new fleet of aerial refueling tankers.

The contract has pitted aerospace rivals Boeing against Northrup Grumman and the European Aeronautic Defence and Space Company (EADS).

Gates, unveiling his defense budget recommendations, said the Pentagon wanted "to replace the Air Force's aging tanker fleet" and would set aside funding for new aircraft "with the intent to solicit bids this summer."

The 35-billion project has been plagued by disputes and scandal.

The politically-charged contract was initially awarded in February 2008 to Northrup Grumman and its partner, EADS, the parent company of Boeing rival Airbus.

But the deal was withdrawn in July after Boeing successfully appealed the decision to the investigative arm of Congress, the Government Accountability Office (GAO).

The defense chief also repeated his opposition to calls from some members of Congress to divide the tanker contract between the rival aerospace firms, saying it would be wasteful and result in duplicated effort.

"I still believe that it is not the best deal for the taxpayer to go with a split buy," he said.

Gates said he believed that if the contract competition was managed in a fair way it would stand up to any appeal.

"The only reason that people are pursuing the idea of a split buy is that they think it is the only way we can move forward in getting any kind of a tanker," he said.

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Analysis: European defense contracts

Brussels (UPI) Jan 26, 2009
French arms exports soared by almost 15 percent in 2008, the French government announced earlier this month. France hopes to further boost its international arms exports by finally creating overseas demand for its long-criticized Rafale fighter jet, manufactured by Dassault.

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