US Air Force General expresses frustration over delays in tanker deal

04 Sep 2008

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Washington: Four-star Air Force General Arthur Lichte has pressed upon the Pentagon to expedite the awarding of a disputed $35 billion contract for new aerial re-fuelling tankers that will allow the US Air Force to retire tanker aircraft dating back to the Eisenhower-era.

Gen. Arthur Lichte, in charge of the Air Mobility Command, told the media that either aircraft offered by Boeing Co. or Northrop Grumman Corp. were capable of the mission. He said a quick decision in awarding the contract to either company would avoid placing further strain on the service's already ageing fleet of tankers.

Grannies in the sky
General Lichte said that if the tanker replacement takes another year or more, the Air Force would have no option but to fly some of its current tanker fleet past 2040, which would make those planes at least 80 years old.

Tanker aircraft are used to refuel combat and other support planes in mid-air, and are critical in their role as force multipliers that extend the range of the military's reach. Mid-air refuelling from tankers has been done in operations over the Persian Gulf, the Balkans and Afghanistan.

American aircraft manufacturer Boeing filed an appeal in March over losing out on the Air Force deal to replace 179 aerial refuelling tankers to rival Northrop and its partner, European Airbus' parent company European Aeronautic Defence and Space Co (EADS).

The competition for the tankers was restarted after government auditors found "significant errors" in the Air Force's decision, and the revamped contest will now be overseen by Pentagon acquisition chief John Young. The new contest is focused on eight areas where the Government Accountability Office (GAO) discovered issues with the first contest.

Chequered history
The tanker replacement program has been frozen ever since Boeing lost the contract amidst an ethics scandal late 2004. The scandal resulted in prison terms for a former senior company official and a former high-ranking Air Force official.

The tanker deal is  one of the largest in Pentagon history. It is the first of three contracts worth up to $100 billion that seek to replace almost 600 refuelling tankers over a 30 year period.

Deadlines slipping
The Pentagon was expected to release its final request for bids last week. However, it skipped a self-imposed deadline of 15 August. Under its new plan, Boeing and Northrop would have had to respond to the bids request by 1October, and the final contract would be awarded by the end of 2008. Given the delay in its request for bids, both deadlines are likely to be missed.

Boeing playing spoilsport
Boeing now says that it needs around four months to assemble its offer, and has threatened to exit the competition if the Pentagon does not comply with its demand. Boeing has said that it would also consider protesting the final request for bids.

Northrop, on the other hand, has been playing second fiddle by repeatedly indicating that a delay in the program only benefits Boeing, and hikes costs for the taxpayer while prolonging delivery schedules for the military.

General Lichte anticipates either competitor to protest the final request for bids, which would further jeopardise the Pentagon's target date of awarding a deal by the end of 2008.

Lichte said, "I don't care which tanker wins, I just need a new tanker."

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