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Old 3rd Apr 2008, 06:59
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ORAC
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GAO Declines To Throw Out Boeing Tanker Protest

The Government Accountability Office has denied requests from Northrop Grumman and the U.S. Air Force to throw out Boeing's protest of a massive tanker contract award that went to Northrop and European partner EADS, according to Air Force and Northrop Grumman press releases issued late in the day April 2. GAO called the Air Force request to dismiss some parts of the protest "untimely," according to the release. "As a result, the Air Force better understands the protest issues."

Boeing is still fighting hard to have the decision overturned, filing a second supplemental to its original protest earlier this week.

In a statement, Northrop said that while GAO had not supported its effort to end the protest of the tanker deal, the company saw Boeing's supplemental filing as a net positive. "Boeing's decision to abandon the public relations rhetoric contained in its original protest filings is in keeping with our motion," said Randy Belote, Northrop Grumman vice president of corporate and international communications, in the statement. "We are encouraged that the company has streamlined its approach. We remain convinced that the Air Force process that led to Northrop Grumman's selection was fair, open and transparent, and we look forward to assisting the Air Force defend its selection decision before the GAO."

On the Boeing side of the fence, however, there was no sense of "streamlining," only a categorical denial that the protest had been narrowed in any way with information added earlier in the week. "We're not reducing anything," said tanker spokesman Bill Barksdale. "We're not eliminating anything."

Boeing has not yet spoken publicly about its most recent protest documents, but a statement is expected April 3.

GAO had not issued a statement on the Boeing supplemental or publicly announced denying the requests from Northrop and the Air Force as of Wednesday evening.

The Air Force announced Feb. 29 that it had picked Northrop Grumman and EADS to build up to 179 of the next-generation tankers. It was a stunning upset for Boeing, until now the sole supplier of air refueling planes to the U.S. military. Backlash was immediate from Congress and organized labor, who say the deal will cost U.S. jobs at a crucial time for the U.S. economy and that the requirements were changed in a way that favored the larger Airbus aircraft built by EADS.

Boeing filed a protest with the GAO March 11. By law, the GAO has 100 days to determine if Boeing's complaints have merit.
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