Boeing Co. officials announced Monday they would protest a U.S. Air Force decision to award a $35 billion aerial refueling contract to a joint venture of Northrop Grumman Corp. and the European parent of Airbus SAS.
The protest, to be filed with the U.S. Government Accountability Office, is the first formal challenge of a defense contracting decision lodged by Chicago-based Boeing in at least 30 years.
"Our team has taken a very close look at the tanker decision and found serious flaws in the process that we believe warrant appeal," said Jim McNerney, Boeing chairman, president and chief executive officer. "This is an extraordinary step rarely taken by our company, and one we take very seriously."
Chicago-based Boeing was considered the heavy favorite to win the contract to replace 179 Eisenhower-era tankers for the U.S. Air Force but it was bested by a team led by Airbus parent European Aeronautic Defense and Space Co. and Northrop Grumman Corp.
Both proposals involved retooling jetliners late in their commercial life cycles, either the Boeing 767 or Airbus A330, into rugged freighters built to haul fuel and cargo around the globe for the military.
The winner likely will wind up replacing all 530 tankers in the Air Force's fleet, a deal that could top $125 billion when parts and maintenance are included, analysts have estimated.
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