Questions still surround Pentagon tanker redo
WASHINGTON (Reuters) - Lawmakers welcomed on Wednesday the Pentagon's decision to reopen a controversial $35 billion aerial tanker competition, but said they would remain vigilant to ensure the revamped process was done fairly.
Some said flaws in the handling of the initial Air Force contract, awarded to Northrop Grumman Corp (NOC.N) and Europe's EADS (EAD.PA) in February, underscored the need to reform the overall area of defense acquisitions.
The congressional Government Accountability Office last month upheld a protest filed by losing bidder, Boeing Co (BA.N), after finding "significant errors" in the process.
Pentagon chief arms buyer John Young, who will now oversee the contest instead of the Air Force, said he would answer more questions at Thursday's House Armed Services subcommittee hearing. For instance, whether the government faces a termination fee if it cancels its contract with Northrop.
The House Oversight and Government Reform Committee also plans a hearing on the issue next week.
Boeing supporters said the Pentagon decision gave the Chicago-based company another chance to win the contract, while Northrop backers expressed confidence that the Los Angeles-based company would prevail again.
Sen. Maria Cantwell, a Washington state Democrat, called for a closed-door hearing in the Senate Armed Services Committee, to "make sure the Department of Defense and Congress are fully aware of the national security issues involved."
If not, she threatened to put a hold on the nomination of Michael Donley as Air Force Secretary. "This issue is too important to have another whitewashed contracting process."
Sen. Patty Murray, the other Washington state senator and a Democrat, said she would be watching carefully to ensure that any new requirements set by the Pentagon did not bias the decision toward Northrop, and that the Pentagon fully considered the life cycle costs of each plane, including military construction and fuel costs.
"When it comes to the Air Force's tanker procurement process, the devil is in the details," she said.
Sen. Richard Shelby, a Republican from Alabama, the state where Northrop was due to build its A330-based tanker, urged lawmakers to support the Pentagon's solution to what he called "minor procedural flaws" found in the initial award.
Shelby underscored the need to replace the aging fleet of KC-135 refueling tankers and get new tankers to U.S. troops.
Rep. Duncan Hunter, ranking Republican on the House Armed Services Committee, said the competition was an opportunity for the Pentagon to fix problems with its acquisition process.
"I'm pleased that the Air Force will incorporate the GAO's recommendations into the new competition; but one thing is clear, the Department of Defense's acquisition system is seriously flawed," Hunter said in a statement.
House Speaker Rep. Nancy Pelosi, a California Democrat, vowed to continue vigorous congressional oversight to ensure military contracting was fair and open. Continued...
