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US tanker deal thrown into doubt | US tanker deal thrown into doubt |
(about 12 hours later) | |
Boeing should get a second chance to bid for a $35bn US Air Force contract, a US government agency has said. | Boeing should get a second chance to bid for a $35bn US Air Force contract, a US government agency has said. |
The Government Accountability Office (GAO) upheld Boeing's protest against the awarding of the air tanker deal to rivals Northrop Grumman and EADS. | The Government Accountability Office (GAO) upheld Boeing's protest against the awarding of the air tanker deal to rivals Northrop Grumman and EADS. |
It said that the Air Force had made a "number of errors" that could have swung the outcome of the competition. | It said that the Air Force had made a "number of errors" that could have swung the outcome of the competition. |
The GAO's ruling is not binding, but it puts huge pressure on the Air Force to put the process out to tender again. | The GAO's ruling is not binding, but it puts huge pressure on the Air Force to put the process out to tender again. |
The GAO said in a statement: "The Air Force made a number of significant errors that could have affected the outcome of what was a close competition. | The GAO said in a statement: "The Air Force made a number of significant errors that could have affected the outcome of what was a close competition. |
"We therefore sustained Boeing's protest." | "We therefore sustained Boeing's protest." |
Massive victory | Massive victory |
The decision is a massive victory for Boeing, paving the way for it to win back all or part of the contract, which was for 179 new aircraft. | The decision is a massive victory for Boeing, paving the way for it to win back all or part of the contract, which was for 179 new aircraft. |
It's important to recognise that the announcement is an evaluation of the selection process, not the merits of the aircraft Louis GalloisEADS chief executive | It's important to recognise that the announcement is an evaluation of the selection process, not the merits of the aircraft Louis GalloisEADS chief executive |
It was welcomed by many US lawmakers, who had been angered over the possibility that US jobs could be lost to Europe, particularly with the economy so fragile. | It was welcomed by many US lawmakers, who had been angered over the possibility that US jobs could be lost to Europe, particularly with the economy so fragile. |
The Air Force said it would review the ruling and set out its response. | |
"The Air Force will select the best value tanker for our nation's defence, while being good stewards of the taxpayer dollar," it added. | "The Air Force will select the best value tanker for our nation's defence, while being good stewards of the taxpayer dollar," it added. |
The news was met with disappointment from Airbus parent firm EADS, but chief executive Louis Gallois remained upbeat. | The news was met with disappointment from Airbus parent firm EADS, but chief executive Louis Gallois remained upbeat. |
"It's important to recognise that the announcement is an evaluation of the selection process, not the merits of the aircraft," he said. | "It's important to recognise that the announcement is an evaluation of the selection process, not the merits of the aircraft," he said. |
Randy Belote at Northrop Grumman said, "We continue to believe that Northrop Grumman offered the most modern and capable tanker." | Randy Belote at Northrop Grumman said, "We continue to believe that Northrop Grumman offered the most modern and capable tanker." |
The Northrop tanker - the KC-30 - would be based on the Airbus A330, while Boeing's offering is the KC-767, a new version of the Boeing 767. | The Northrop tanker - the KC-30 - would be based on the Airbus A330, while Boeing's offering is the KC-767, a new version of the Boeing 767. |