Posted on Wed, Nov. 18, 2009

e-mail	print	RSS	reprint
AIM	Digg it	del.icio.us	Facebook

Boeing wins appeal

BY MOLLY MCMILLIN

The Wichita Eagle

A U.S. appeals court on Tuesday reversed a lower court's ruling, paving the way for the Air Force to award a $1.1 billion contract to Boeing to maintain its fleet of KC-135 refueling tankers.

Boeing originally was awarded the contract in September 2007.

Alabama Aircraft Industries, which bid unsuccessfully against Boeing, twice appealed the award to the General Accountability Office but was denied.

Ultimately, Alabama Aircraft filed a complaint with a federal claims court, which upheld the GAO's ruling, except for one issue — a "price-realism analysis."

The claims court said the Air Force failed to "deal explicitly" in its request for proposal with the issue that the KC-135 fleet is aging.

The court ordered the Air Force to resolicit the bid and address the role of the aging fleet.

Boeing and the government appealed the decision.

The appeals court said in its decision that "there can be little doubt that, since those aircraft first went into service decades ago, both the Air Force and the potential bidders were aware that the KC-135 tanker fleet was aging."

Instead, the court ruled that the Air Force rightfully dealt with the uncertainties of an aging fleet by requiring bidders to base their proposal on three elements: basic maintenance, additional items to be performed on some aircraft and unexpected work.

"This was a determination well within the agency's discretion," the court said.

It also ruled that the claims court's attempt to rewrite the proposal to account for the impact of aging aircraft was beyond the scope of the court.

Boeing spokesman Forrest Gossett said the company is pleased with the decision that lifted the injunction on the programmed depot maintenance contract for KC-135s.

"The Appeals Court ruling affirms that the Air Force correctly chose Boeing for this vital sustainment work to keep the KC-135 fleet flying and battle-ready for our nation's warfighters," Gossett said. "It is now time for our team to work with the Air Force to execute this contract."

About 40 engineers at Boeing Wichita perform KC-135 work.

The tankers refuel fighter jets and other military planes in the air. The tankers are more than 50 years old.

The Air Force is in the midst of its third bid to replace the fleet. But the current tankers will have to continue flying for many more years.

Reach Molly McMillin at 316-269-6708 or mmcmillin@wichitaeagle.com.

     Showing: Oldest first Newest first Most-recommended first Least-recommended first

@Nyx.AuthorDisplayName@ wrote on @Nyx.PostedAtTime@:

@Nyx.CommentBody@

@Nyx.Recommender@ @Nyx.AbuseReporter@