When the Pentagon decided to grant a $35 billion Air Force refueling tanker contract to Northrop Grumman Corp., it set off a celebration in Alabama's port city, where some 2,000 jobs would be created to help build the aircraft.
But the large design of the Northrop tanker fell out of favor over the past two years as rival Boeing Co. kept up the pressure for its own smaller model. The Defense Department redid the contract's specifications and Northrop Grumman announced Monday that it won't compete, leaving Boeing the lone bidder.
Northrop CEO Wes Bush said the new guideline "clearly favors Boeing's smaller refueling tanker."
Alabama officials said they were disgusted, verbally lashing the Pentagon.
"I don't blame Northrop Grumman for refusing to take part in this charade," Republican Gov. Bob Riley said in a statement. "The Pentagon and White House have made it impossible for any other plane to be competitive. It's disgraceful."
The Pentagon defended the program as fair and said both companies could compete effectively. Defense Department spokesman Bryan Whitman said the program would not be reworked just to ensure a competition.
"To suggest that the department should conduct a competition that would result in DOD paying a much higher price for capabilities that are not needed simply isn't effective," Whitman said.
Riley said if it wasn't a political decision, "then why would the Pentagon intentionally rewrite the specifications from what they originally wanted a year ago? When the Air Force is compelled by politics to select the slower, smaller and older plane, no one can say with a straight face that this is what's best for America or America's warfighters," Riley said.
Republican U.S. Rep. Jo Bonner of Mobile also decried the developments over the past two years.
"I am deeply disappointed that Northrop Grumman was unable to submit a bid for the KC-X tanker program," he said. "Frankly, I am outraged at the Defense Department's bungling of this contract for what is now the third time."
He said the president has adopted a strong policy against sole-source contracts, as the tanker contract now will be with only one bidder.
"Apparently the Pentagon didn't get the word and has handed the president a $35 billion sole-source hot-potato, under circumstances that are highly suspect," he said. "The president must now intervene to protect the interests of the taxpayer and the men and women of our military."
