Pentagon set to issue revised tanker terms in weeks

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Wed Jan 6, 2010 4:15pm EST

* Pentagon sees terms out in "next few weeks"

* No final decisions yet, but changes certain

* Acquisition strategy being altered "a bit"

WASHINGTON, Jan 6 (Reuters) - The Pentagon said on Wednesday it is correcting mistakes in the draft terms for a multibillion dollar refueling plane competition and will issue a final request for proposals (RFP) within the next weeks.

"The team is in the process of correcting mistakes ... and altering the acquisition strategy a bit," Pentagon spokesman Geoff Morrell told reporters on Wednesday. "And that will be reflected in the final request for proposals which will likely go out in the next ... few weeks."

He said the document could be released before the end of the month, or in early February.

Morrell gave no details on possible changes, and said officials were still reviewing comments from industry before finalizing the terms for the competition.

"No final decisions have been made yet about the RFP, but I think it is safe to say at this point that there will be changes to the draft," he said.

Northrop Grumman Corp (NOC.N) and its European partner EADS (EAD.PA) beat out Boeing Co (BA.N) in February 2008 to win a projected $35 billion deal to build 179 new aerial tankers.

The Pentagon scrapped that deal and launched a new competition after government auditors upheld a Boeing protest.

Last month, Northrop said the draft terms favored Boeing's smaller 767-based tanker, and it would not bid unless significant changes were made.

Morrell stressed that the Pentagon was trying to be even-handed about any changes made to the competition terms.

"Whatever changes are being made should not be construed as any attempt to favor anybody," he said.

"We are trying to make the RFP as fair and as transparent as possible, while at the same time providing the taxpayers with the best value for their money and the warfighters the best ...plane to support their operations." (Reporting by Andrea Shalal-Esa; editing by Carol Bishopric)

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Comments (1)
discocrisco wrote:
Jeff Session will be not be happy camper if Boeing gets that contract.

Jan 06, 2010 9:16pm EST  --  Report as abuse
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