Appeals Court Reinstates $1 Billion Air Force Contract To Boeing
By Kristina Peterson and Brent Kendall, Of DOW JONES NEWSWIRES
WASHINGTON -(Dow Jones)- The U.S. Court of Appeals for the Federal Circuit on
Tuesday reinstated Boeing Co.(BA)'s $1 billion contract to maintain the U.S. Air
Force fleet of aerial refueling tankers.
The decision overturns the U.S. Court of Federal Claims' decision last year
that Boeing's bid had not sufficiently estimated how to care for the nearly 50-
year-old fleet of K-135 tankers.
A three-judge appeals court panel said Tuesday that the trial court had
improperly imposed its own ideas of how to write a contract over those of the
Air Force. The government had asked bidders to submit three-part work plans
including estimates for basic maintenance of the fleet, additional repairs and
unexpected work.
"The court's attempt to write the [request for proposals] to account for the
impact of aging aircraft in the manner the court preferred went beyond the scope
of the court's review and amounted to an impermissible substitution of the
court's judgment for the agency's," the court wrote in its opinion.
Alabama Aircraft Industries Inc. (AAII), an unsuccessful bidder for the $1.1
billion contract, challenged the agency's award to Boeing in 2007. The appeals
court on Tuesday ordered Alabama Aircraft to pay all costs incurred in preparing
the bid and proposals.
-By Kristina Peterson, Dow Jones Newswires; 202-862-6619; kristina.peterson@
dowjones.com
(END) Dow Jones Newswires
11-17-091208ET
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