Wednesday, July 09, 2008

Sucks to be Northrop Right Now

It is highly likely the Air Force will reopen the tanker contract previously won by NGC and subsequently protested by Boeing. At stake is $35 billion. Obviously, the winner today is Boeing's KC-767AT proposal and NGC's KC-45 proposal the loser, but I argue the real losers are the armed services who will have to endure yet another delay before a replacement tanker will come online to replace the aging KC-10 and KC-135 fleet.

I ask you, after the Boeing fiasco where that company was penalized for rigging the first attempt to award the contract, how did the Air Force blow this one? I would have thought all of the t's were crossed and the i's dotted; now it seems the Air Force dotted the former and crossed the later.

Although the KC-45 airframes produced in Alabama, they are EADS designed Airbus A330s, a European product. Boeing 767s are produced and designed in Seattle. Is this a case of parochial protectionism? I would argue we need to overlook such concepts, for it is far better to procure best-of-breed products, we would be endangering our servicemen and women to do otherwise. Of course, where products involve sensitive or classified information, I argue to keep it all onshore. The tanker, though, is an airframe, not communications encryption.

One might also suspect a deep conspiracy--with defense dollars dwindling for new development because of ongoing war commitments--this could be a ploy by the brass to further delay committing money to this project on the contractor's dime until a new fiscal year comes about.

In the end, we taxpayers can only watch the DoD as it compounds newer and more ingenious ways to budgetary disaster.

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