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New Tanker Contract Two Years Away

New Tanker Contract Two Years Away

It will be another two years before we know if the new Air Force refueling tankers will be built in Mobile.


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WASHINGTON, Dec 10 (Reuters) - The United States will take at least two more years to start replacing its aircraft-refueling fleet after seven years of failed efforts, the head of a House of Representatives subcommittee with responsibility for defense spending said on Wednesday.

A team of Northrop Grumman Corp and Europe's EADS beat Boeing Co for the projected $40 billion first phase of the project in February. But Boeing has been given a second chance under the incoming administration of President-elect Barack Obama, after its protest was upheld by a congressional umpire.

"It will take at least another two years, at minimum, before we begin to start procurement of a replacement tanker," Rep. John Murtha, who heads the Appropriations subcommittee on defense, said in remarks prepared for a discussion on military priorities at the Center for American Progress think tank.

Murtha, a Pennsylvania Democrat, said the Defense Department had "wasted" the past seven years in its botched efforts to procure a replacement for the KC-135 fleet that averages nearly 50 years old.

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