Representing the third attempt in nine years to replace the Air Force's aging KC-135 aerial refueling tanker, the Pentagon on Wednesday released its final request for proposal (RFP) for a $35 billion contract that will lead to the Air Force's acquisition of 179 next-generation planes.
With award selection slated for September, it still remains uncertain whether or not Northrop Grumman Corp. and the North American arm of the European Aeronautic Defence and Space Co. (EADS) will submit a bid to compete with Boeing Corporation. Northrop and other critics of the KC-X contract process—which restarted for the third time after a 2008 award to Northrop and EADS North America was overturned on appeal—have expressed deep concerns that the DoD has tailored the KC-X contract in favor of Boeing's less expensive 767 plane.
"This becomes nothing more than a cost competition, and a bigger plane costs more," said Loren Thompson, referring to the Northrop/EADS North America Airbus A330, whose larger size allows for additional fuel, troops and cargo. "It's Boeing's competition to lose."
Northrop's strongest supporter's on Capitol Hill, including Senator Richard Shelby (R-AL)—whose state would house a KC-X production line—expressed loud opposition following the Pentagon's RFP release on Wednesday. According to Shelby, the final RFP "discredits the integrity of the entire process" and is an "illusion of a fair competition in which the warfighter and the taxpayer lose."
However, the likely ascension of Rep. Norm Dicks to the Chairmanship of the House Appropriations Subcommittee on Defense—to replace the late Rep. John Murtha (D-PA)—will strengthen Boeing's hand by placing a key ally at the helm of arguably the most powerful subcommittee in the House.
Capitol Hill Dissects FY11 Pentagon Budget
The House and Senate Armed Services Committee conducted a second round of DoD budget hearings this week, receiving testimony from the individual services' top civilian and military leaders. Despite general support for the President's requested price tag—$708.3 billion—a bevy of lawmakers called for additional funding to support key industries within their states and districts.
In particular, Mississippi delegation members Rep. Gene Taylor (D) and Senator Roger Wicker (R) voiced concern over the funding allocated to the Navy's shipbuilding budget. Wicker reminded Navy Secretary Ray Mabus and Chief of Naval Operations, Admiral Gary Roughead during a hearing this week that in order to meet the Navy's stated goal of a 313-ship fleet, 12 ships will need to be constructed annually for the next 18 years, opposed to the current plan of 10 per year. In addition, Taylor, who serves as the Chairman of the House Seapower and Expeditionary Forces Subcommittee, stated his intention to force the Navy's hand by enacting FY11 legislative language that requires the commissioning of three ships for every two that are decommissioned.
"I've tried to give them the benefit of the doubt over the years," Taylor said. "I've listened to three [chiefs of naval operations] and three secretaries of the Navy tell me they want a 313-ship Navy, but their request doesn't match what they say. So if they won't match their own request in writing, if they won't do it administratively, then I am—with the support of Chairman [Ike] Skelton—saying we'll do it legislatively."
One again, the elimination of the F-35 alternate engine program also remained a prominent concern amongst lawmakers this week. Although DoD Secretary Robert Gates testified earlier this month that he will "strongly recommend that the president veto any legislation that sustains the unnecessary continuation of those two programs," Congress appears poised for another battle of the popular program after it successfully included $465 million to continue the development and procurement of the alternative engine within the FY10 Defense Appropriations bill (H.R. 3326).
Next month, SASC will continue examining President Obama's FY11 DoD budget and its impact on the U.S. military services and commands. Below is SASC's upcoming hearing schedule:
DoD Contracts of Note
Oshkosh Corp. announced on Tuesday that it has been awarded a $640 million Army contract to deliver 1,460 mine-resistant ambush protected all-terrain vehicles (M-ATVs) for use in Afghanistan.
Thus far, Oshkosh has received contract awards totaling over $4.74 billion to build 8,079 M-ATVs, a vehicle that remains one of the military's top priorities in order to enhance protection against improvised explosive devices (IEDs) and mobility for troops operating in Afghanistan's rugged and mountainous terrain.
On Capitol Hill, lawmakers have been some of the foremost defenders of the administration's M-ATV procurement proposals. In the FY10 Defense Appropriations bill (H.R. 3326), $6.3 billion was provided for the procurement of over 6,600 M-ATVs, $825 million above the President's original request. In addition, M-ATVs received $4.5 billion within the FY09 War Supplemental (H.R. 2346), $1.9 billion above the President's request.
On Thursday, Lockheed Martin also announced that it has been awarded a $90 million Army contract to bolster targeting and night vision capabilities on the AH-64 Apache helicopter. This latest award represents the third extension of a contract originally received by Lockheed in 2007.
Nominations
After Senator Shelby released his "holds" on over 70 pending presidential nominations— intended to protest the Obama administration's KC-X acquisition process and decision to withhold funding for the FBI's Terrorist Device Analytical Center (TEDAC)—the Senate confirmed a handful of DoD and DHS nominees in early February, including the following:
- Douglas B. Wilson, to be an Assistant Secretary of Defense, Public Affairs
- Clifford L. Stanley, to be Under Secretary of Defense, Personnel and Readiness
- Mary Sally Matiella, to be Assistant Secretary of the Army, Financial Management & Comptroller
- Caryn A. Wagner, to be Under Secretary for Intelligence and Analysis, Department of Homeland Security
However, Shelby is continuing to place holds on the following DoD nominees: Terry Yonkers, to be assistant secretary of the Air Firce; Frank Kendall, to be principal deputy undersecretary of Defense for acquisition, technology and logistics; and Erin Conaton, to be undersecretary of the Air Force.
Quote of the Week
"I do have serious concerns about the impact of repeal of the law on a force that is fully engaged in two wars and has been at war for eight and a half years. We just don't know the impacts on readiness and military effectiveness."
Army Chief of Staff Gen. George Casey, Jr., responding to questions on Capitol Hill regarding the U.S. military's "don't ask, don't tell" policy during a HASC hearing on Tuesday. Gen. Casey, along with the service chiefs for the Air Force, Marine Corps and Navy, cautioned lawmakers this week against moving too quickly on a potential repeal, urging them to await the results of a Pentagon study that is set for completion by the end of 2010.
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