Share This Article

Facebook LinkedIn
Twitter Reddit
Print Email
Pinterest Gmail
Yahoo
Money Morning
×
  • Invest
    • Best Stocks to Buy
    • Stock Forecasts
    • Stocks to Sell Now
    • Stock Market Predictions
    • Technology Stocks
    • Best REITs to Buy Now
    • IPO Stocks
    • Penny Stocks
    • Dividend Stocks
    • Cryptocurrencies
    • Cannabis Investing
    • Angel Investing
  • Trade
    • How to Trade Options
    • Best Trades to Make Now
    • Options Trading Strategies
    • Weekly Trade Recommendations
  • Retire
    • Income Investing Guide
    • Retirement Articles
  • More
    • Money Morning LIVE
    • Special Investing Reports
    • Our ELetters
    • Our Premium Services
    • Videos
    • Meet Our Experts
    • Profit Academy
Login My Member Benefits Archives Research Your Team About Us FAQ
  • Invest
    • Best Stocks to Buy
    • Stock Forecasts
    • Stocks to Sell Now
    • Stock Market Predictions
    • Technology Stocks
    • Best REITs to Buy Now
    • IPO Stocks
    • Penny Stocks
    • Dividend Stocks
    • Cryptocurrencies
    • Cannabis Investing
    • Angel Investing
    ×
  • Trade
    • How to Trade Options
    • Best Trades to Make Now
    • Options Trading Strategies
    • Weekly Trade Recommendations
    ×
  • Retire
    • Income Investing Guide
    • Retirement Articles
    ×
  • More
    • Money Morning LIVE
    • Special Investing Reports
    • Our ELetters
    • Our Premium Services
    • Videos
    • Meet Our Experts
    • Profit Academy
    ×
  • Subscribe
Enter stock ticker or keyword
×
5 Ways to Beat the Fed (and Crush Inflation)

Email this Article

Send with mail | ahoo instead.
Required Needs to be a valid email
Required Needs to be a valid email
Second Chance for Boeing as Defense Department Reopens Bidding on $35 Billion Contract
http://mney.co/1dDy5Bv
Required Please enter the correct value.
Twitter

Second Chance for Boeing as Defense Department Reopens Bidding on $35 Billion Contract

By Jennifer Yousfi, Money Morning • July 10, 2008

View Comments

Start the conversation

By Jennifer Yousfi
Managing Editor

The Boeing Co. (BA) got some hard won good news yesterday (Wednesday) when Secretary of Defense Robert Gates announced the U.S. Air Force would reopen bidding on a disputed $35 billion contract based on findings of the Government Accountability Office.

"I've concluded the contract cannot be awarded at present" because of flaws found by the Government Accountability Office, Gates said at a press conference at the Pentagon yesterday, Bloomberg News reported. The new bidding process will reexamine eight of Boeing's complaints that were upheld by the GAO, out of more than 100 concerns it had initially raised, by seeking "revised proposals from the industry," he said.

Last month, the Government Accountability Office backed a petition brought by Boeing that the U.S. Air Force altered the auction for a $35 billion aerial-tanker contract - a bid that went to a joint-venture of rivals Northrop Grumman Corp. (NOC) and Europe's EADS NV (PINK: EADSY), and in turn, helped push Boeing's stock down more than 11% at the time.

Boeing filed the complaint in early March, claiming that the Air Force misled the company and modified its specifications to accommodate models made by Northrop and Airbus S.A.S.

The GAO found that there were discrepancies in the bidding process and recommended the Air Force re-conduct the bidding. However, GAO rulings are only advisory in nature, and the Air Force did not have to comply.

The Air Force was given 60 days to respond to the GAO's ruling, and the speedy decision is seen as a good sign for Boeing.

With an initial contract value of $35 billion that could easily grow to $100 billion or more over time, both sides have fiercely contested the bidding process.

"EADs feels very raw over this," Alexandra Ashbourne, who heads Ashbourne Strategic Consulting in London, an aerospace analysis firm, told The New York Times. "There was a lot of effort expended for no return. You cannot underestimate how raw and burnt they feel as a result of all this."

But its partner, Northrop Grumman, remains confident of eventual success, despite the delays.

Northrop Grumman is "reviewing the decision to ensure the re-competition will provide both companies a fair opportunity," company spokesman Randy Belote said in a statement, Bloomberg News reported.

"The United States Air Force has already picked the best tanker, and we are confident that it will do so again," Belote added.

[Editors Note: To read a related story on Boeing's recent prediction that aircraft sales will exceed $3.2 trillion over the next 20 years, click here.]

News and Related Story Links:

  • The New York Times:
    U.S. Reopens Bidding on Flawed Tanker Contract
  • Bloomberg News:
    Boeing to Get New Shot at Tanker Award, Gates Says
  • Money Morning:
    Boeing's Air Force Petition Sustained, Back in Running for $35 Billion Contract
  • Money Morning:
    Boeing Not Going Down Without a Fight, Files Grievance Over Lost Contract

Join the conversation. Click here to jump to comments…

1 Comment
Oldest
Newest Most Voted
Inline Feedbacks
View all comments
trackback
Second Chance for Boeing as Defense Department Reopens Bidding on $35 Billion Contract
14 years ago

[…] Source: Second Chance for Boeing as Defense Department Reopens Bidding on $35 Billion Contract addthis_url = 'http%3A%2F%2Fdev.contrarianprofits.com%2Farticles%2Fsecond-chance-for-boeing-as-defense-department-reopens-bidding-on-35-billion-contract%2F3666'; addthis_title = 'Second+Chance+for+Boeing+as+Defense+Department+Reopens+Bidding+on+%2435+Billion+Contract'; addthis_pub = "; Advertisement […]

0
LIVE
Visit Money Morning Live


Latest News

March 31, 2023 • By Kenny Glick

Every Single Person Who Thinks They Can Predict the Markets is Delusional

March 31, 2023 • By Chris Johnson

Tap into the PCE market impact for a strong April

March 31, 2023 • By Garrett Baldwin

Momentum Turns Positive... CHPT Trade Rips Higher
Trending Stories
ABOUT MONEY MORNING

Money Morning gives you access to a team of market experts with more than 250 years of combined investing experience – for free. Our experts – who have appeared on FOXBusiness, CNBC, NPR, and BloombergTV – deliver daily investing tips and stock picks, provide analysis with actions to take, and answer your biggest market questions. Our goal is to help our millions of e-newsletter subscribers and Moneymorning.com visitors become smarter, more confident investors.

QUICK LINKS
About Us COVID-19 Announcements How Money Morning Works FAQs Contact Us Search Article Archive Forgot Username/Password Archives Profit Academy Research Your Team Videos Text Messaging Terms of Use
FREE NEWSLETTERS
Total Wealth Research Power Profit Trades Profit Takeover This Is VWAP Penny Hawk Trading Today Midday Momentum Pump Up the Close
PREMIUM SERVICES
Money Map Press Home Money Map Report Fast Fortune Club Weekly Cash Clock Night Trader Microcurrency Trader Hyperdrive Portfolio Rocket Wealth Initiative Extreme Profit Hunters Profit Revolution Warlock's World Quantum Data Profits Live Trading Alliance Trade The Close Inside Money Trader Expiration Trader Flashpoint Trader Darknet Hyper Momentum Trader Alpha Accelerators Weekly Profit Cycles Brutus Alerts

© 2023 Money Morning All Rights Reserved. Protected by copyright of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including the world wide web), of content from this webpage, in whole or in part, is strictly prohibited without the express written permission of Money Morning.

Address: 1125 N Charles St. | Baltimore, MD, 21201 | USA | Phone: 888.384.8339 | Disclaimer | Sitemap | Privacy Policy | Whitelist Us | Do Not Sell or Share My Personal Information

wpDiscuz