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Air-to-air Refueling Tanker Aircraft Replacement Update

B.A.E. Systems and the company have signed asigned the budget law in November that
collaboration agreement for the design,finally authorized the deal. The dismissals
development, supply, and support ofof chief financial officer and former air
air-to-air refueling tanker aircraft based onforce acquisition chief in November also
the Boeing 767 aircraft platform, helping totriggered calls for a wider review of the
secure significant numbers of high-value jobsservice's  procurement  decisions.
and  skills  in  the  UK.
The company says they were fired for talking
The Memorandum of Understanding applies toto someone about future employment while he/
the current UK programmer for the futureshe was still the air force's top acquisition
provision of replacement tanker aircraft, asofficial and the Pentagon's representative in
well as existing programmers in the Unitedcontract talks for the tanker deal. They have
States, Japan, and Italy. The M.O.U. alsodenied this and Boeing's claim that he tried
applies to all future programmers globallyto  cover  up  his  actions.
and potential growth into other large
platforms. Both Bae Systems and the companyThe question of whether they improperly
are  part  of  TTSC,  the  Tanker  Team.tipped off the company on Airbus pricing
data, meanwhile, remains the target of a
The Chief Executive, Bae Systems said,criminal investigation by the Pentagon's
"The bid put forward by TTSC willinspector general. Those allegations stemmed
deliver the best capability for the UKfrom internal emails obtained and released in
forces, in terms of interoperability andlate August by a Senator, an ardent opponent
flexibility of usage in concert with the US,of  the  deal.
as well as securing jobs, skills, and work
for  many  years  to  come."The company says there are no links between
the misconduct charges and the tanker
"The global market has alreadynegotiations. The review, however, means a
overwhelmingly made its decision with thefresh round of scrutiny that may still
company 767 having been selected by theimperil  the  project.
United States, Japan and Italy. This is why
B.A.E. Systems decided to team with theSays The US Secretary of Defense: "We
company to the benefit of the UK's defensehave just read that two people have been
industrial base. Today's M.O.U. willrelieved of their responsibilities by a
therefore deliver very long term substantialcompany that we had engaged in an
benefits if the UK now selects the Boeingunderstanding with, and that it struck me, at
aircraft."least, that responsible people would want to
say to themselves: "Well, what might
The President and CEO of the companythat mean for the department? Did something
Integrated Defense Systems commented: "Ahappen?"
significant market for tankers exists
world-wide. We are excited about makingA spokesman for the anti-tanker lease
Britain's aerospace industry part of ourTaxpayers for Common Sense admits that the
global tanker team. Today's announcement ispotential effects of the new review are
firm evidence of Boeing's commitment to theunclear, but the misconduct charges alone
UK and support of high value engineeringshould at least "deter any new
jobs, as well as the companies close workinggerrymandering or shenanigans" on the
relationship  with  BAE  Systems."deal.
US Secretary of Defense is blocking aThe charges also may cast a new light on
lease-buy deal for 100 Boeing tankers whiletheir 10-year tenure as the air force's top
he examines the circumstances surroundingacquisition official. They had gained a
misconduct charges that prompted Boeing lastreputation as a prickly combatant of defense
week to fire two executives, including onecontractors, more than once publicly calling
close  to  the  deal.out a contractor's misdeeds. But they also
supported two controversial proposals that
The review is the latest crisis to challengeoffered big rewards for the company - the
the legitimacy of the US Air Force'stanker lease and a defeated attempt in 2000
two-year-old attempt to acquire the KC-767to label the C-17 as a commercial item.
tanker fleet, and came just as The President



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