Kansas officials hail tanker decision

Reconsideration of $35 billion contract a boost for Boeing Co.

In this artist's depiction provided by Northrop Grumman Corp., a KC-45A refuels a B-2 stealth bomber. Congressional investigators have upheld Boeing's protest of a 5 billion Air Force tanker contract awarded to Northrop Grumman Corp. and Airbus parent European Aeronautic Defence and Space Co., and recommended that the service hold a new competition.

? Kansas officials hailed a government report Wednesday that gave Boeing Co. a major victory in its quest to land a $35 billion Air Force tanker contract.

The Government Accountability Office found major flaws in the Air Force’s decision earlier this year to award the contract to a competitor – a team comprised of Northrop Grumman and a European defense company. It recommended the service hold a new competition.

“I have never quite seen a more damning report,” Sen. Pat Roberts, R-Kan., said of the GAO findings. “It’s a total vindication for Boeing.”

The decision is a boost for Wichita, Kan., where Boeing Integrated Defense Systems would be the finishing site for the tankers if Boeing wins the contract. Lawmakers from Kansas and Washington state – where most of Boeing’s new tanker construction would take place – have led the charge to reverse the Air Force decision.

“This decision gives Boeing an opportunity to rebid the contract and would enable them to keep good jobs in Kansas and in states across the country,” Gov. Kathleen Sebelius said.

Kansas officials also had criticized the decision for subsidizing foreign competitors at the expense of U.S. jobs in the aerospace defense industry. The GAO is not permitted to consider those factors, but Sen. Sam Brownback, R-Kan., suggested they provide additional reasons to support Boeing.

By statute, the Air Force has 60 days to inform the GAO of how it will respond to the recommendations. Roberts called on the Air Force to rebid the contract and said he and Rep. Todd Tiahrt, R-Kan., would introduce legislation requiring a new competition if the Air Force does not reopen the process.

Tiahrt, who represents the Wichita district that includes Boeing, called the report “a huge victory for American workers and the men and women of our armed forces who deserve the best tanker.”

“It is up to the Air Force to now make things right,” Tiahrt said.

Brownback noted that the GAO report agreed with nearly every major argument Boeing made against the contract award. Among them, the Air Force failed to follow its own criteria in evaluating the two proposals and failed to give Boeing credit for satisfying key requirements.

The GAO also found that the Air Force unfairly rewarded Northrop Grumman and its partner, Airbus parent European Aeronautic Defence and Space (EADS), for proposing a larger plane than was requested and did not reasonably calculate the cost of construction and engineering.

Bob Brewer, Midwest director for the Society of Professional Engineering Employees in Aerospace in Wichita, said the decision helps level the playing field for Boeing.

“I think it was the right decision for the American economy, even our local economy and state economy,” Brewer said. “Where we are talking tens of thousands of jobs and millions of dollars, those dollars need to stay here and provide some job security to the American workers.”

Former Kansas Rep. Jim Slattery, a Democrat who is trying to unseat Roberts, claimed Wednesday that Roberts should share some of the blame for Boeing’s current predicament.

Slattery said the Senate had a chance in 2005 to include “Buy American” rules in a defense bill that would have prohibited foreign companies like EADS from bidding for defense contracts. But the rules were stripped from the bill in a Senate conference committee that included Roberts.

Slattery also released documents showing that Roberts’ son, David, was registered as a lobbyist for EADS at about the time the “Buy American” provision was being considered.

Roberts’ spokeswoman Sarah Little said the “Buy American” provision was stripped in conference because President Bush threatened to veto the entire bill over the language, and that then-Senate Armed Services Committee Chairman John Warner, R-Va., also opposed it.

“That kind of blanket policy that DOD cannot procure things from overseas companies is impractical and unwise,” Little said.

Little said Roberts’ office also adheres to a strict policy to ensure that David Roberts’ lobbying activities remain separate from his father’s office and staff. She said he never lobbied against Boeing and that public documents show his lobbying related only to helicopter programs.

Roberts’ campaign spokeswoman Molly Haase called Slattery’s charges “desperate political attacks.”