jrhd97
06-19-08, 11:31 AM
Wednesday, June 18, 2008
Boeing Wins Tanker Contract Protest
http://www.foxbusiness.com/images/stories/airforce%20one%20276.jpgAir Force One is a Boeing 747-200B that has been modified to meet presidential requirements.
Boeing (BA (javascript:stockSearch('BA');): 76.39, +1.74, +2.33%) has won its protest of the U.S. Air Force’s $35 billion tanker contract, congressional sources told FOX Business.
The news sent shares of the Seattle-based aircraft maker soaring in heavy mid-afternoon trading.
According to House and Senate sources, the Government Accountability Office determined the Air Force made “significant errors” in the tanker award process and should "revisit" the decision. The lucrative contract was awarded to Northrop Grumman (NOC (javascript:stockSearch('NOC');): 70.35, +0.34, +0.48%) and Europe-based EADS, the parent company of Airbus.
The decision by the GAO is not binding, but it puts pressure on the Air Force to possibly re-visit the decision.
The 2007 decision by the Air Force’s 2007 award the $35 billion tanker contract to EADS was considered controversial by many in homeland security because it awarded a U.S. defense contract to a foreign government-subsidized company. The tanker, while being made by foreign company, would have been built in Mobile, Ala.
"Today, the GAO sustained Boeing's protest and confirmed what I have been saying for months - the Air Force's tanker decision was fundamentally flawed," said Boeing supporter Sen. Patty Murray, D-Wash., in a statement immediately following the announcement.
Boeing argued that the Air Force was not clear in what they wanted for a tanker when the contract was originally bid out. The Air Force chose the larger Airbus A330-based model over Boeing's 767-based model despite giving the indication they wanted something smaller.
http://www.foxbusiness.com/story/markets/industries/government/boeing-wins-tanker-contract-protest/
Boeing Wins Tanker Contract Protest
http://www.foxbusiness.com/images/stories/airforce%20one%20276.jpgAir Force One is a Boeing 747-200B that has been modified to meet presidential requirements.
Boeing (BA (javascript:stockSearch('BA');): 76.39, +1.74, +2.33%) has won its protest of the U.S. Air Force’s $35 billion tanker contract, congressional sources told FOX Business.
The news sent shares of the Seattle-based aircraft maker soaring in heavy mid-afternoon trading.
According to House and Senate sources, the Government Accountability Office determined the Air Force made “significant errors” in the tanker award process and should "revisit" the decision. The lucrative contract was awarded to Northrop Grumman (NOC (javascript:stockSearch('NOC');): 70.35, +0.34, +0.48%) and Europe-based EADS, the parent company of Airbus.
The decision by the GAO is not binding, but it puts pressure on the Air Force to possibly re-visit the decision.
The 2007 decision by the Air Force’s 2007 award the $35 billion tanker contract to EADS was considered controversial by many in homeland security because it awarded a U.S. defense contract to a foreign government-subsidized company. The tanker, while being made by foreign company, would have been built in Mobile, Ala.
"Today, the GAO sustained Boeing's protest and confirmed what I have been saying for months - the Air Force's tanker decision was fundamentally flawed," said Boeing supporter Sen. Patty Murray, D-Wash., in a statement immediately following the announcement.
Boeing argued that the Air Force was not clear in what they wanted for a tanker when the contract was originally bid out. The Air Force chose the larger Airbus A330-based model over Boeing's 767-based model despite giving the indication they wanted something smaller.
http://www.foxbusiness.com/story/markets/industries/government/boeing-wins-tanker-contract-protest/