WASHINGTON (AP) - A defense bill approved by Congress would allow open competition for a multibillion-dollar contract to supply refueling tankers for the Air Force. President Bush is expected to sign the measure, squelching an earlier House-approved bill that would have helped The Boeing Co. (BA) by keeping the Pentagon from buying military equipment from the parent company of European jet maker Airbus SAS.
"Buy America" language had been inserted by Rep. Duncan Hunter, R-Calif., chairman of the House Armed Services Committee. However, Hunter agreed to remove the provision last month at the request of Senate leaders and administration officials, who said it could spark retaliatory measures by other countries and limit Pentagon flexibility. Congress voted final passage Dec. 21.
Chicago-based Boeing lost the tanker deal in 2004, after revelations that it had hired a top Air Force acquisitions official who later admitted giving the company preferential treatment. The deal would have allowed the Air Force to buy or lease 100 Boeing 767 planes for use as tankers, but it was killed by Congress in the 2005 defense authorization bill. The Air Force has said it is likely to reopen the deal to competition, although no formal timeline has been set. |