REFILE-U.S. Air Force focused on tanker acquisition

Wed Sep 16, 2009 10:19am EDT

 (Refiles Sept. 15 story to fix typo in first sentence)
 * Draft rules due in next few weeks
 * Service still aims to buy 179 planes
 * Eyeing about 600 planes overall
 By Andrea Shalal-Esa
 NATIONAL HARBOR, Md., Sept 15 (Reuters) - The U.S. Air
Force said on Tuesday it was focused on ensuring its third
attempt to buy new aerial refueling planes succeeds, and that
the military wins any protests that might be filed against the
winner.
 "The most important thing we have to do in this year is
deliver on the KC-X acquisition," Air Force Chief of Staff
General Norton Schwartz told reporters at the Air Force
Association annual conference.
 "That will have a lot to do with many other things and
people's perceptions of our competence. So we're taking that
very, very seriously," Schwartz said.
 Former Air Force Secretary Michael Wynne and his chief of
staff, Gen. Michael Moseley, were forced to resign in June 2008
amid charges of nuclear weapons handling mistakes, favoritism
in awarding a Thunderbirds contract, and a sense that the Air
Force was not supplying sufficient intelligence assets for the
war.
 Shortly thereafter, the Government Accountability Office
also upheld a protest filed by Boeing Co (BA.N) against a
projected $35 billion contract awarded to Northrop Grumman Corp
(NOC.N) and Airbus parent EADS (EAD.PA) for 179 tankers.
 The service's first tanker acquisition drive, a sole-source
lease deal with Boeing, collapsed amid a major procurement
scandal that sent a former top Air Force weapons buyer and
Boeing's former chief financial officer to federal prison.
 Schwartz said the service was determined to get the tanker
competition right this time, and to ensure that it prevailed in
any protests that could be filed by the companies this around.
 He said the Air Force has an acquisition improvement plan,
which would be focused on the tanker program, which is due to
kick off with a draft request for proposals (RFP) in "the next
few weeks."
 He said he would not necessarily link the success of the
acquisition reforms to the filing of a protest by one of the
companies in the bidding, given certain company imperatives.
 "But a fair measure of merit will be succeeding in the
protest," he said.
 AIMING FOR FOOLPROOF RULES
 Asked about suggestions that the companies could even file
protests against the rules of the competition, once they are
finalized, Schwartz said he hoped that would not be the case.
 "The companies will do what they have to do," he said. "Do
you think that we'd put an RFP on the street that we didn't
think was near foolproof?"
 Schwartz rejected comments by some industry observers who
say the Air Force has been less willing to engage in dialogue
with the companies during the run-up to this competition.
 Schwartz said his view was that "there's been far better
communication than was previously the case."
 General Arthur Lichte, who heads Air Mobility Command, the
part of the Air Force that will own and operate the new
tankers, said the plan was still to buy 12 to 15 airplanes a
year, for an initial total of 179 planes.
 In the longer term, he said the Air Force would likely need
520 to 640 new tankers.
 (Reporting by Andrea Shalal-Esa, additional reporting by Jim
Wolf, editing by Matthew Lewis)


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