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Air Force May Reopen Refueling Bids, Outgoing Secretary Says

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The Associated Press

Published: June 21, 2008

WASHINGTON - An audit agency's recommendation that the Air Force reopen bidding on a contract to build a new generation of aerial refueling planes almost certainly means the Air Force will fail to put the planes into service starting in 2013, as planned, the service's departing civilian chief said Friday.

"Of course, the Air Force will try desperately to hold onto" that target date "because of the age of our current fleet," Air Force Secretary Michael Wynne told a small group of reporters. "I will also say there's almost no way to do that in the face of this straightforward delay in the start date."

He said Northrop has put off groundbreaking for two facilities that would build the aircraft.

Timing is an important issue because the current fleet of aerial refuelers is growing decrepit. The fleet of refuelers is a critical link in the global reach of the Air Force, enabling fighters and bombers to operate over great distances and to remain on station for long periods over Iraq, Afghanistan and elsewhere.

On his final day in office, Wynne said he was disappointed by the review conducted by the Government Accountability Office, which found "a number of significant errors" in the Air Force's February decision to award the $35 billion contract to Northrop Grumman and its European partner. Boeing, the loser in the bidding, protested to the GAO.

Wynne was ousted two weeks ago by Defense Secretary Robert Gates, along with the top uniformed Air Force officer, Gen. Michael Moseley. Wynne is to be replaced today by Michael Donley, who will be the acting secretary pending his confirmation by the Senate.

Wynne said he saw no possibility the GAO would alter its findings. And although its recommendation that the bidding be reopened is not binding on the Air Force, Wynne said that after studying the decision further, the Air Force likely would issue a new request for bids.

"We were very disappointed," by the decision, Wynne said in the Air Force's most extensive comments on the GAO ruling, which gives ammunition to Boeing supporters in Congress who have been seeking to block funding for the tanker deal or to force a new competition.

"The reason we are very disappointed, I think, is the intensity of effort that went into having a very open and a very transparent" competition between Boeing and Northrop, Wynne said. He spoke of "reshaping and revising" the competition, but he did not indicate that any final decisions had been made.

He described the ruling as "an opportunity perhaps to take a whole other look at the way that we offered, in other words the way we offered to buy" from the manufacturers who submitted contract bids.

Wynne said the Air Force is "somewhat confused by some of the wording" of the GAO ruling, and he said the service would seek clarifications before it proceeds with a new competition.

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