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Lawmakers press for answers on $35B Air Force deal



By DONNA BORAK, AP
10 July 2008 @ 07:19 pm EST

WASHINGTON - Lawmakers on Thursday demanded a detailed explanation of what went wrong with the Air Force's management of a $35 billion tanker contract awarded to Northrop Grumman Corp. and its European partner over Boeing Co.


Boeing Tanker Fight
Cars drive away from Boeing Co.'s Everett, Wash. assembly plant Wednesday, July 9, 2008. Defense Secretary Robert Gates said Wednesday that Boeing and Northrop Grumman Corp. will submit new offers for a disputed $35 billion Air Force tanker contract, and the Pentagon will pick a winner by the end of the year. (AP Photo/Ted S. Warren)
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"This isn't the first time the acquisition system has failed," said Rep. Neil Abercrombie, D-Hawaii, chairman of a House Armed Services subcommittee.

Congress sought clarity from a Defense Department official and congressional investigators on whether the recent competition's failure was confined to the Air Force, or indicative of a more systemic problem among the Pentagon's procurement process.

"Is it too complex? Do we have the right people? Do they have the right training?" asked Abercrombie.

Lawmakers also pressed for details on how the Pentagon would proceed with the re-competition of the tanker deal that Defense Secretary Robert Gates announced Wednesday to avoid future mistakes.

Gates said the Air Force would no longer oversee the tanker competition, and appointed Pentagon acquisition chief John Young and a dedicated source selection committee to take the helm. The Pentagon will hold a limited rebid that will look at eight problems the government auditors found in the initial process.

Young on Thursday reassured lawmakers the Pentagon would try to mitigate or avoid any more mistakes, including doing a better job of explaining to both competitors the most valued requirements in a new aircraft.

The Government Accountability Office last month detailed "significant errors" the Air Force made in the original award to Northrop and Airbus parent European Aeronautic Defence and Space Co. The GAO said Chicago-based Boeing, which protested the deal, might have won had the service not made mistakes in evaluating the bids.

Congress has been highly critical of the Air Force's management of the competition, arguing the latest botched contract continues a recent string of acquisition failures by the service, including a $15 billion deal awarded to Boeing in 2006 for search-and-rescue helicopters, which was later challenged by Bethesda, Md.-based Lockheed Martin Corp. A new contract has yet to be awarded.

Following the hearing, senior Air Force and Pentagon officials including Sue Payton, assistant secretary of the Air Force for acquisition, were scheduled to hold a closed-door session with committee members.

Copyright 2008 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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