Boeing (BA) was able to get the government to re-open the bidding for the Air Force’s new tanker. In the original round of competition, Boeing was bested by the team of Northrup Grumman (NOC) and EADS. Some members of Congress thought it was un-American for a European company to get part of the deal, but the low bidder did seem to be the winner.
Now that Boeing is getting a new chance, the firm says it needs six months to re-submit the details of its offer to build the plane. The Defense Department wanted the bids in by October 1.
BusinessWeek has speculated that delaying the process will help Boeing, because a Congress and White House ruled by Democrats might be more favorable to the company’s cause.
If a financial magazine can figure out a maneuver which is so transparent, so can almost anyone else.
There is little evidence that the first round of bidding was unfair. Boeing’s lobbying efforts got the process back to the starting line. The company does not need six months to see if it can adapt one of its current aircraft so that it can operate as a tanker. It saw the specifications in the first round of the evaluation of the Air Force’s needs. Another look will not change things.
Boeing’s delaying tactics don’t serve the process, which is to get a new tanker into service as soon as possible. If Boeing can’t hit the new deadline, it should be taken out of the process.
Northrup has given a legitimate bid once and says it can hit the new bid date set by the Defense Department on time.
Boeing would like to pretend incompetence, but it won’t fool anyone.
Douglas A. McIntyre
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