Procurement of big ticket items

Follow up to the US military ‘procurement and research’ increases post:

$25 billion for the first new aircraft carrier, $9 billion for per for another one or two each.

Aircraft Builders Compete for Air Force Tanker Contract Again 24/7 Wall St.:

Maybe the third time will be the charm. Today marks the closing date for bids to build a new refueling tanker for the US Air Force. Boeing Co. (NYSE: BA) submitted its 8,000 page bid on the deadline day, following a submission yesterday from the European Aeronautic, Defence & Space Co., known as EADS and makers of the Airbus family of planes. The bid from EADS did not include participation by its former partner, Northrup Grumman Corp. (NYSE: NOC).

The Pentagon’s first try at getting a new tanker began in 2000 and the contract was awarded to Boeing in 2004. The $35 billion award would have replaced 179 Boeing 707-based tankers built from the original contract awarded during the Eisenhower administration. A bribery scandal involving Boeing executives resulted in cancellation of the contract and a new round of bidding.
The contract was re-awarded in 2008, this time to Northrup, which had partnered with EADS to build the planes at the European maker’s Alabama plant on a modified version of the Airbus 330 passenger plane. That contract too was cancelled when the Government Accountability Office found irregularities in the way the decision was made.

The bidding was opened again last year, with a decision now due in November. A third bid, from U.S. Aerospace Inc. (OTC: USAE) and Ukranian partner Antonov Co., is also expected today…

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