, August 22, 2008
Boeing May Bail Out of Pentagon Contract
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Boeing may bail out of a $40 billion contract to build U.S. Air Force aerial refueling tankers unless the Pentagon allows Boeing to submit a new bid for the project.
Boeing has requested a period of six months to submit a new bid, according to the Wall Street Journal. Boeing’s threat of walking away from the project is possibly the biggest weapon Boeing has in its favor, according to the Journal. If Boeing walks away, the government would have no competition for such a high profile contract.
The head of Boeing’s defense unit, Jim Albaugh, told the Journal on Thursday that Boeing has realized the Pentagon’s proposal calls for a plane that can haul more fuel than the plane Boeing originally bid to build.
Albaugh said that if Boeing was not given the six months asked, there was a “really high likelihood” that the program would be a no-bid.
The Government has given Boeing an additional 15 days to come up with a new bid for a plane that will hold more fuel. However, Albaugh has said Boeing needs an additional four months to develop a proposal for a plane that will be in the Pentagon’s inventory for 40 years.
Boeing May Bail Out of Pentagon Contract
Recommend (7) Email this Story | Respond to Editor | Print
Boeing may bail out of a $40 billion contract to build U.S. Air Force aerial refueling tankers unless the Pentagon allows Boeing to submit a new bid for the project.
Boeing has requested a period of six months to submit a new bid, according to the Wall Street Journal. Boeing’s threat of walking away from the project is possibly the biggest weapon Boeing has in its favor, according to the Journal. If Boeing walks away, the government would have no competition for such a high profile contract.
The head of Boeing’s defense unit, Jim Albaugh, told the Journal on Thursday that Boeing has realized the Pentagon’s proposal calls for a plane that can haul more fuel than the plane Boeing originally bid to build.
Albaugh said that if Boeing was not given the six months asked, there was a “really high likelihood” that the program would be a no-bid.
The Government has given Boeing an additional 15 days to come up with a new bid for a plane that will hold more fuel. However, Albaugh has said Boeing needs an additional four months to develop a proposal for a plane that will be in the Pentagon’s inventory for 40 years.