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Air-To-Air Refueling Tanker Aircraft Replacement Update

B.A.E. Systems and the company have signed atanker fleet, and came just as The President
collaboration agreement for the design,signed the budget law in November that
development, supply, and support offinally authorized the deal. The dismissals
air-to-air refueling tanker aircraft based onof chief financial officer and former air
the Boeing 767 aircraft platform, helping toforce acquisition chief in November also
secure significant numbers of high-value jobstriggered calls for a wider review of the
and  skills  in  the  UK.service's  procurement  decisions.
The Memorandum of Understanding applies toThe company says they were fired for talking
the current UK programmer for the futureto someone about future employment while he/
provision of replacement tanker aircraft, asshe was still the air force's top acquisition
well as existing programmers in the Unitedofficial and the Pentagon's representative in
States, Japan, and Italy. The M.O.U. alsocontract talks for the tanker deal. They have
applies to all future programmers globallydenied this and Boeing's claim that he tried
and potential growth into other largeto  cover  up  his  actions.
platforms. Both Bae Systems and the company
are  part  of  TTSC,  the  Tanker  Team.The question of whether they improperly
tipped off the company on Airbus pricing
The Chief Executive, Bae Systems said, "Thedata, meanwhile, remains the target of a
bid put forward by TTSC will deliver the bestcriminal investigation by the Pentagon's
capability for the UK forces, in terms ofinspector general. Those allegations stemmed
interoperability and flexibility of usage infrom internal emails obtained and released in
concert with the US, as well as securinglate August by a Senator, an ardent opponent
jobs, skills, and work for many years toof  the  deal.
come."
The company says there are no links between
"The global market has already overwhelminglythe misconduct charges and the tanker
made its decision with the company 767 havingnegotiations. The review, however, means a
been selected by the United States, Japan andfresh round of scrutiny that may still
Italy. This is why B.A.E. Systems decided toimperil  the  project.
team with the company to the benefit of the
UK's defense industrial base. Today's M.O.U.Says The US Secretary of Defense: "We have
will therefore deliver very long termjust read that two people have been relieved
substantial benefits if the UK now selectsof their responsibilities by a company that
the  Boeing  aircraft."we had engaged in an understanding with, and
that it struck me, at least, that responsible
The President and CEO of the companypeople would want to say to themselves:
Integrated Defense Systems commented: "A"Well, what might that mean for the
significant market for tankers existsdepartment?  Did  something  happen?"
world-wide. We are excited about making
Britain's aerospace industry part of ourA spokesman for the anti-tanker lease
global tanker team. Today's announcement isTaxpayers for Common Sense admits that the
firm evidence of Boeing's commitment to thepotential effects of the new review are
UK and support of high value engineeringunclear, but the misconduct charges alone
jobs, as well as the companies close workingshould at least "deter any new gerrymandering
relationship  with  BAE  Systems."or  shenanigans"  on  the  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.



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