Terms on US tanker bid due Wednesday: officials

WASHINGTON, Feb 23, 2010 (AFP) - The US Air Force said it will release on Wednesday the final terms of a 35-billion-dollar competition to replace the country's aging fleet of aerial refueling tankers, US defense officials said.

The move marks the latest attempt by the Pentagon to build new tanker aircraft in a project marred by controversy and scandal dating back to 2001.


The final request for proposal was expected to be issued on Wednesday after the close of US markets, officials speaking on condition of anonymity told AFP on Tuesday.

William Lynn, deputy defense secretary, Ashton Carter, under secretary for defense for acquisition technology and logistics, and Air Force Secretary Michael Donley were scheduled to brief reporters on the tanker program at 4 pm local time (2100 GMT), the Pentagon said in a statement.

The lucrative competition pits Airbus parent EADS and its partner Northrop Grumman against arch-rival Boeing, with the two sides and their advocates in Congress locked in a long-running battle.

The European Aeronautic Defence and Space Company and Northrop have accused the Pentagon of favoring Boeing in a draft request for proposal, and warned they may withdraw from the competition.

Pentagon officials are anxious for EADS and Northrop to participate in the bidding, but have ruled out major changes to the requirements for the 15-year contract and denied any bias.

Northrop has accused the Defense Department of focusing mainly on the competitors' prices, instead of technical features.

Military commanders view the planned KC-X aircraft as crucial to sustaining US air power and are anxious to replace the older Boeing KC-135 Stratotankers that date back to the 1950s.

General Norton Schwartz, the US Air Force chief of staff, told lawmakers that replacing the tanker fleet was vital.

"Awarding a new aerial refueling aircraft contract remains our top acquisition priority, and we hope to deliver an RFP (request for proposal) within days to get the program under way," Schwartz told lawmakers on Tuesday.

A contract for the tankers was awarded in February 2008 to Northrop and EADS, but the deal was later withdrawn after Boeing successfully appealed the decision to the Government Accountability Office (GAO), the investigative arm of the US Congress.


by Dan De Luce
© 2010 AFP