Northrop battles back against Boeing

The Pentagon should not give Boeing more time to make its bid in the contentious and controversial battle to win a $35 billion Air Force contract to replace its aging aerial refueling tanker fleet, Northrop Grumman said Friday.

Northrop Grumman, which along with Airbus parent EADS initially won the contract in February, said the Pentagon has given prospective bidders enough time, and an extension would only increase the cost of the replacing the tanker fleet.

{mosads}“If one competitor decides it is now time to listen to their customer and fundamentally change their offer, that is their choice, but the war fighter and taxpayer should not have to bear the burden of their late-breaking change in business strategy,” Northrop Grumman spokesman Randy Belote said in a statement.

Boeing successfully protested the Air Force’s awarding of the contract to Northrop Grumman to the Government Accountability Office. After the GAO ruled in Boeing’s favor, the Pentagon’s leadership took over the competition and issued revised requests for proposals.

Boeing contends the revised draft request for bids suggests the Pentagon wants a larger aircraft that could carry more fuel — a requirement that could benefit Northrop Grumman, which has an offer based on the Airbus 330.

Dan Beck, a spokesman for Boeing, said the company has no problems with the draft request. However, he said Boeing senses the Pentagon wants a larger aircraft now, and the company needs more time to put together a new proposal. Without more time, he said it would be at a disadvantage with Northrop Grumman.

Boeing has offered the 767 in the past, but it may consider a larger version of the 767 or the 777 for this competition.

Boeing has asked for an additional four months on top of the two months the Pentagon is planning to give for bids. If it is not given more time, it has threatened to pull out of the competition.

The Pentagon initially planned to require that bids be submitted by Oct. 1 and to make a decision by the end of the year.

Boeing’s threat to pull out of the bidding process could resonate in political circles not only among Boeing’s congressional supporters, but also among lawmakers who want to see a competition for one of the Pentagon’s largest contracts.

If the Pentagon does extend the bidding process, the decision would slip into a new administration and a mostly Democratic House and Senate.

Democratic presidential contender Sen. Barack Obama is from Chicago, where Boeing’s headquarters are. He was critical of the award to a European company and vowed to examine the deal. On the other hand, the Republican hopeful Sen. John McCain (Ariz.) was instrumental in thwarting the lease deal between the Air Force and Boeing four years ago.