Originally published February 29, 2008 at 12:00 AM | Page modified February 29, 2008 at 5:16 PM
Late change to tanker criteria could spark a protest, analysts say
As Boeing awaits news due at 2 p.m today of the Department of Defense's decision on the long-awaited air refueling tanker contract, a controversial...
Seattle Times aerospace reporter
A long and bumpy flight
The tanker contract has had a remarkably tangled history.October 2001: As the airline industry struggles following the Sept. 11 terrorist attacks, the Air Force proposes to lease 100 air-refueling tankers from Boeing at a cost of $20 billion or more. Sen. John McCain quickly becomes the chief critic, calling it "a sweet deal" for Boeing that will cost taxpayers more than alternative plans.
November 2003: Boeing fires CFO Mike Sears and VP of missile defense systems Darleen Druyun after concluding Sears improperly offered her a job in October 2002 while she was a top Air Force acquisitions officer overseeing the tanker contract. Boeing CEO Phil Condit resigns a week later.
May 2004: Defense Secretary Donald Rumsfeld effectively scraps the tanker leasing deal.
February 2005: CEO Harry Stonecipher says Boeing may close the slow-selling 767's Everett production line pending a tanker decision. The line stays open, though.
September 2005: Northrop Grumman officially teams up with EADS, the parent of European aircraft-maker Airbus, to bid for the contract.
April 2006: The Air Force formally re-opens its procurement process for replacing tankers.
January 2008: Airbus chief says EADS will assemble commercial jets as well as Air Force tankers in Mobile, Ala., if his team wins.
February 2008: Pentagon decision due to be announced at 2 PM Friday, Feb. 29.
Sources: Seattle Times archives and news services
As Boeing awaits news due at 2 p.m today of the Department of Defense's decision on the long-awaited air refueling tanker contract, a controversial late change to the Air Force's selection criteria has emerged that may provide grounds for a formal protest by the losing side.
Two analysts who have closely followed the tanker competition confirmed independently that the Air Force recently changed some of the criteria used to assess the performance of the competing planes, Boeing's 767 tanker and its rival based on the Airbus A330 proposed by Northrop Grumman and Airbus parent EADS.
Each expressed surprise that the Air Force, after going out of its way to appear painstakingly scrupulous and fair, made such a last-minute adjustment.
"What we have is an appearance of fairness issue. The rules of the game were changed after the game commenced," said aviation industry analyst Scott Hamilton. "This just really smells."
"It could very well attract the attention of Senator (John) McCain (R-Ariz), who went after the appearance of and the fact of unfairness in the first go-round," Hamilton said.
Loren Thompson, a defense analyst with the Lexington Institute, concurred: "When you have a close competition, any surprises, any deviation from what had been expected, becomes a bone of contention for the loser."
In 2001 Boeing was awarded the Air Force contract, but that was later canceled after a procurement scandal that followed close scrutiny of the deal by Sen. McCain.
Thompson said the criteria used to compare the competing planes in the current tanker competition had been changed late in the process.
The changed requirements were part of a computer model called the Integrated Fleet Air Refueling Assessment (IFARA) used to work out how the planes perform in sepcific war scenarios.
The change had the effect of "leveling of the scores for both planes with regard to certain performance features," Thompson said.
Leveling the value of certain features while maintaining them in others could give one side an advantage in a competition such as the tanker contract where the planes are very different in size and have very different capabilities.
Thompson said he was told authoritatively that "both of the proposed planes met all of the Pentagon's validated war-fighting requirements."
"They satisfied all the key performance features that were requested," said Thompson. "Therefore this was a fairly close competition."
Earlier this month, the Department of Defense Inspector General's office, the Pentagon's internal watchdog agency, said it would audit a previous defense contract award to Boeing — to build the Air Force Combat Search and Rescue Helicopter — after protests from competitors Sikorsky and Lockheed Martin over late changes made to the "key performance parameters."
An Air Force spokeswoman declined substantive comment today, saying that the Air Force Secretary "will talk through the criteria used in the selection" at the 2 p.m. press conference.
Dominic Gates: 206-464-2963 or dgates@seattletimes.com
Copyright © 2008 The Seattle Times Company
Boeing warns of 49 possible layoffs locally
Boeing breaks ground for historic SC plant
Boeing facility death was suicide
Court gives $1.1B tanker contract back to Boeing
Dubai Airshow: Boeing wins first orders for 737s

LA Galaxy's David Beckham
Los Angeles Galaxy's David Beckham talks about the upcoming MLS Cup final during after a team practice.
nwjobs

Post a comment

Michelle Goodman blogs about work/life balance.
How to tell your office you're gravely ill
Post a comment
nwautos

Choosing a new sedan? Weigh the impact of your choice on your wallet and on the planet.
Post a comment
- Monfort fired after excellent worker turned unreliable
- Sentence request for US woman in Italy murder case
- 31 years for man who killed girlfriend, then lit cigarette and waited for police
- Boeing facility death was suicide
- Mariners Blog | A Mariners-Tigers swap makes a whole lot of sense for both teams
- Swedish threatens to end Regence BlueShield's contract
- Man falls 8 stories, suffers minor injuries
- Man shot in chest on E. Union Street in Capitol Hill
- Italian lead prosecutor argues Knox motive was hatred
- Mariners Blog | Dustin Ackley to move to second base; Mariners add six to 40-man roster
- First key vote today on Senate health bill
162 - Mariners add six to 40-man roster
103 - Boeing breaks ground for historic SC plant
97 - Lynnwood is reinventing itself — again
78 - Man shot in Capitol Hill
71 - Italian lead prosecutor argues Knox motive was hatred
67 - Senate vote clears hurdle
47 - Bye week answers, volume four
46 - Case of accused "Street Mobb" pimp goes to jury
45 - Saturday links
43
- Washington state wines make annual best-of list
- Swedish threatens to end Regence BlueShield's contract
- Recipes: Sesame Pork Roast, Sour Cream Mashed Potatoes, Gingerbread with Lemon Sauce and more
- It's possible to recover a life lost to hoarding
- Nonprofits get creative using Twitter and Facebook to make donation easier
- Restaurant review | Artisanal at The Bravern shows French flair in delicious style
- Peruvian police: Gang killed people for their fat
- Seattle industrial artist Rusty Oliver is the man behind 'Smash Putt'
- Great places to cross-country ski for free (or almost) in the Methow
- $335 million in education grants





