Alabama senator drops some job holds, keeps others

WASHINGTON Feb 9 (Reuters) - Senator Richard Shelby has released his "holds" on more than 40 of President Barack Obama's nominees for top government jobs, but is maintaining them on three nominees related to a big Air Force acquisition.

Shelby's use of the legislative tactic drew fire from the White House and senior Democratic lawmakers last week, with White House spokesman Robert Gibbs calling it "the poster child for how this town needs to change the way it works."

Shelby, a Republican from Alabama, dropped most of the holds on Monday, said his spokesman, Jonathan Graffeo.

"The purpose of placing numerous holds was to get the White House's attention on two issues that are critical to our national security -- the Air Force's aerial refueling tanker acquisition and the FBI's Terrorist Device Analytical Center (TEDAC)," he said.

"With that accomplished, Sen. Shelby has decided to release his holds on all but a few nominees directly related to the Air Force tanker acquisition."

Graffeo also rejected the White House's characterization of the Air Force tanker competition or the FBI explosives center as earmarks. Shelby wants both the tanker and the center to be built in Alabama.

"Sen. Shelby is not seeking to determine the outcome of the competition; he is seeking to ensure an open, fair and transparent competition that delivers the best equipment to our men and women in uniform," Graffeo said. He said Shelby's concerns were fully justified given the history of the tanker acquisition.

The Air Force said on Monday that it would issue final terms soon, but not before Feb. 23, for its third attempt to begin replacing its aging fleet of KC-135 refueling planes.

Northrop Grumman Corp (NOC.N) and its European partner, EADS (EAD.PA), won a projected $35 billion deal in February 2008 to build 179 refueling tankers for the Air Force and planned to assemble the A330-based planes in Mobile, Alabama.

The Pentagon canceled the deal in late 2008 after government auditors upheld a protest by losing bidder Boeing (BA.N).

Congress killed an earlier Air Force sole-source plan to lease and buy 100 Boeing 767-based tankers.

Northrop reiterated on Monday that it would not bid in the current competition unless the Air Force significantly changes a draft request for proposals that the company and its backers say is skewed to favor Boeing's smaller 767 tanker.

Shelby's office said he would maintain holds on three nominations -- Terry Yonkers as assistant secretary of the Air Force; Frank Kendall, principal deputy undersecretary of Defense for acquisition, technology, and logistics; and Erin Conaton, undersecretary of the Air Force -- until the final terms were issued.

Senator Jeff Sessions also maintains holds on two of those nominations: Kendall, a former Raytheon Co (RTN.N) executive, and Conaton, a top adviser to House Armed Services Committee Chairman Ike Skelton, said his spokeswoman, Sarah Haley. (Reporting by Andrea Shalal-Esa; Editing by Lisa Von Ahn)