Takes Flight
08 May 2008
Northrop Grumman Contract Funding Clears Another Hurdle
Reuters is reporting that funding for Northrop Grumman's contract to build America's next generation of aerial refueling tankers has cleared another procedural hurdle in Congress.
According to Reuters, the House of Representative's Air and Land Forces panel - a subcommittee of the House Armed Services Committee - "made no recommendation that would interfere with a $35 billion Air Force plan to acquire 179 aerial refueling aircraft built by Northrop Grumman Corp...rather than by Boeing."
Boeing, which praised the bidding process as fair and open while it was going on, has launched a formal protest to Northrop Grumman's win with the Government Accountability Office (GAO). Some of Boeing's supporters in Congress have threatened to kill the deal – even if the GAO upholds the Air Force contracting procedures.
But the Air and Land Forces panel took no action to thwart the contract as it approved the fiscal year 2009 military spending package yesterday. Reuters reports that the measure will next be considered by the full Armed Services Committee next Wednesday before being sent to the full House for approval. The Senate Armed Services panel has also put forward its version of the military spending package that includes funding for the tanker.
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