Team Infidel
Forum Spin Doctor
Wall Street Journal (wsj.com)
June 26, 2008 WASHINGTON (AFP)--U.S. Secretary of Defense Robert Gates said Thursday he hasn't made a decision on reviewing the $35 billion air tanker dispute between Boeing Co. (BA) and Northrop Grumman Corp. (NOC). But he acknowledged there are problems with the contract.
Last week, the Government Accountability Office, the investigative arm of Congress, backed a protest by Boeing over the contract awarded to Northrop Grumman and its partner European Aeronautic Defense & Space Co. NV (5730.FR), and recommended the U.S. Air Force review the deal.
"I haven't made any decisions yet," Gates said. "But I would say that I take the GAO report very seriously. They've clearly pointed out some areas where we were deficient.
"We've clearly had problems with the tanker contract. And this time around is not the first time, obviously. And so, I think I need to get a better feel for the GAO report and for the criticisms and the nature of the criticisms that they have made."
Gates said he is "continuing to talk about this and figure out the right way forward" with top Pentagon officials, including those in charge of Pentagon and Air Force purchases.
"I know that there were a number of areas in which (the GAO) found that the process was done correctly. And so, I need to weigh that," Gates said.
The new refueling planes are to replace the Air Force fleet of aging tankers made by Boeing, which had been the sole supplier of air refueling planes to the U.S. military.
EADS, the parent company of Airbus, which teamed up with Northrop Grumman to win the contract, saw the deal as a key move in efforts to break into the U.S. military market.
June 26, 2008 WASHINGTON (AFP)--U.S. Secretary of Defense Robert Gates said Thursday he hasn't made a decision on reviewing the $35 billion air tanker dispute between Boeing Co. (BA) and Northrop Grumman Corp. (NOC). But he acknowledged there are problems with the contract.
Last week, the Government Accountability Office, the investigative arm of Congress, backed a protest by Boeing over the contract awarded to Northrop Grumman and its partner European Aeronautic Defense & Space Co. NV (5730.FR), and recommended the U.S. Air Force review the deal.
"I haven't made any decisions yet," Gates said. "But I would say that I take the GAO report very seriously. They've clearly pointed out some areas where we were deficient.
"We've clearly had problems with the tanker contract. And this time around is not the first time, obviously. And so, I think I need to get a better feel for the GAO report and for the criticisms and the nature of the criticisms that they have made."
Gates said he is "continuing to talk about this and figure out the right way forward" with top Pentagon officials, including those in charge of Pentagon and Air Force purchases.
"I know that there were a number of areas in which (the GAO) found that the process was done correctly. And so, I need to weigh that," Gates said.
The new refueling planes are to replace the Air Force fleet of aging tankers made by Boeing, which had been the sole supplier of air refueling planes to the U.S. military.
EADS, the parent company of Airbus, which teamed up with Northrop Grumman to win the contract, saw the deal as a key move in efforts to break into the U.S. military market.