GAO Judgment on Tanker Decision Expected by Thursday
Monday, June 16th, 2008The U.S. Government Accountability Office (GAO) is expected to make a judgment on the U.S. Air Force’s decision to award the EADS (EPA:EAD) and Northrop Grumman (NYSE:NOC) CNBC’s Jane Wells is reporting.
Her analysis was that although the Air Force isn’t bound by GAO’s findings, it would be tough for the Air Force to go against it in this current political climate. Boeing (NYSE:BA) is basing its formal protest on the following two major points - 1) The Air Force favored the EADS/NG prototype because it is larger, but Boeing claims it didn’t know that was what the Air Force wanted and 2) Claims the European government is giving EADS subsidies, making it more difficult for Boeing to compete.
If the GAO rules in favor in Boeing, the Air Force is likely to re-open bidding. If they rule in favor of Mobile, it’s another hurdle cleared, but they still face pushback in Congress from the pro-Boeing lobby, including the likes of Reps. Norm Dicks (D-Wash.) and Todd Tiahrt (R-Kan.)
But, I see according to today’s Political Skinny, the good folks back home in Mobile are planning a parade to celebrate, regardless the outcome.