Boeing had this contract in the bag in 2004, but a woman named Darleen Druyan crossed the line between her job in the Air Force procurement office and the offices at Boeing defense. Mike Sears (then Boeing CFO) and Ms. Druyan were both jailed for their illegal deals. This was a huge embarrassment for the Air Force and did not exactly do wonders for Boeing's reputation either.
The scandal forced (via the US Congress led by Sen. McCain) the USAF to put the contract up for bids once again and the larger and more capable A330 derived tanker has won. It will be interesting to watch the fallout once Congress is tasked with funding the buy. Some Washington insiders have already begun the assault and labor unions from around the US will also be gearing up for protests.
The arguments will be politically motivated - that is to say a US Air Force aircraft should not now nor ever be built by the French. (their words) Silly, but true.
Here are a few choice quotes from a New York Times article available
here.
In response to questions about possible negative reaction to the deal in Congress, Gen. Arthur J. Lichte, head of the Air Force’s Air Mobility Command, said, “This will be an American tanker, flown by American airmen with an American flag on its tail and, every day, it will be saving American lives.”
Reaction from some in Congress, however, was swift.
“We are outraged that this decision taps European Airbus and its foreign workers to provide a tanker to our American military,” the Washington State delegation said in a joint statement. Boeing planes are assembled outside of Seattle. “This is a blow to the American aerospace industry, American workers and America’s men and women in uniform,” the statement added.
Any official protest from the losing bidder would substantially delay the entry into service of the EADS/Northrop tanker. According to one Air Force general, a Boeing protest won't change the outcome - but American politics being what they are - I wouldn't count out the 'home team' just yet.