The US Government Accountability Office (GAO) released a report explaining its decision last week to uphold Boeing’s protest of the USAF tanker contract

The US Government Accountability Office (GAO) released a report explaining its decision last week to uphold Boeing’s protest of the USAF tanker contract. In this report, the GAO’s auditors claim the competition was flawed as the Air Force conducted “misleading and unequal discussions” with Boeing, thus unfairly favouring EADS and Northrop Grumman. “It is clear that the award was the result of a flawed process”, said Mark McGraw, tanker programme manager at Boeing. Northrop Grumman vicepresident for air mobility systems Paul Meyer, for his part, declared that “in several areas key to the selection decision, the GAO found no basis to object to the Air Force evaluation”. The GAO concluded that without those errors in the selection process, Boeing would have had a “substantial chance” of winning the contract. Le Point says Boeing supporters on Capitol Hill rejoiced at the GAO’s decision to recommend a reopening of the bidding process for 179 refuelling tankers. Kansas representative Todd Tiahrt said he was happy to see the “French tanker” rebuffed. For EADS, this ruling is a severe blow. The tanker contract was a huge bet for the European group, which could thus become a first-rank supplier to the Pentagon. Now, the project to set up a plant in Alabama and EADS’s whole ‘dollarisation’ strategy are put on hold. Besides, says Challenges, EADS fears that its partner Northrop Grumman joins forces with Boeing in the second round of bidding, which would leave it without any chance to win the contract. In the US, the debate has landed into the presidential campaign. While Democrat candidate Barack Obama said he “applauded” the GAO’s recommendations, Republican Senator John McCain is largely criticised for his role in the cancellation of an initial contract award to Boeing in 2004. Les Echos comments that the US, who presents itself as the champion of free trade, can adopt protectionist stances when it comes to defend its domestic interests – especially since the tanker debate has emerged in a context of economic crisis. However, says Flight International, a new competition and rising US protectionism will not “trump the fact that the USAF still prefers” the EADS-Northrop Grumman offer. AFP (25/06), Reuters (25/06), AFX (25/06), Le Point, Le Nouvel Observateur, Challenges, L’Usine Nouvelle, Valeurs Actuelles, The Wall Street Journal Europe, Los Angeles Times (25/06), Flight International (24/06)