Boeing Not Going Down Without a Fight, Files Grievance Over Lost Contract
By Jason Simpkins
Associate Editor
The Boeing Co. (BA) has filed a formal protest with the Government Accountability Office hoping to overturn a $35 billion contract awarded to its rivals by the U.S. Air Force, which Boeing is accusing of modifying its specifications to accommodate a larger plane.
"This competition was seriously flawed and resulted in the selection of the wrong airplane," Mark McGraw, head of Boeing’s tanker program, said in a statement. "We were deliberate in this process and we think we were not treated fairly."
Boeing executives said Tuesday, that they were misled into believing the Air Force wanted a medium-size tanker and the larger plane, co-constructed by Northrop Grunman Corp. (NOC) and Airbus S.A.S., benefited from changes to the evaluation criteria.
This is just the first step in what will likely devolve into a protracted legal battle. The contract win by Northrop and Airbus, a subsidiary of European Aeronautic Defense & Space Co., also rouses pro-American labor sentiments – particularly from unions and lawmakers in states where Boeing has big payrolls.
Sen. Patty Murray (D-Wash.) has already scolded Air Force officials for their decision, saying that after telling Boeing it wanted to buy a "pickup truck," the Air Force bought a "semi-truck" from Airbus.
Most analysts agree the Air Force changed its criteria for the tanker, but the question lingers as to whether it did so fairly.
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"It appears, over time, Northrop Grunman was able to change the Air Force’s mind about what it wanted," Loren Thompson, a military analyst at the Lexington Institute, told the International Herald Tribune.
Thompson said that early in the competition the Air Force was only interested in a tanker, but it warmed up to the idea of a more versatile plane that could transport cargo and personnel as well. The plane that won the bid is based on the Airbus A-330 passenger jet, which is substantially larger than the Boeing 767, the basis for that company’s losing proposal.
In its defense, the Air Force said it "followed a carefully structured process, designed to provide transparency, maintain integrity and promote fair competition."
The contract in question could be in effect for decades to come and grow to $100 billion in value, making it worth fighting over.
News and Related Story Links:
- Los Angeles Times:
Boeing files protest over tanker choice
