Washington, D.C. - Citizens Against Government Waste and the nation’s top taxpayer and budget watchdog groups, representing millions of taxpayers, joined together today to reiterate their support for a Defense Department purchasing and contracting process that remains open and fair.  These groups remember all too well the original tanker lease deal – a $23 billion earmark, tucked into the 2003 Defense Appropriations Act conference report by Senator Ted Stevens (R-Alaska), directing the Air Force to lease 100 refueling tankers from Boeing Corporation.  There were no hearings or opportunities for debate for the no-bid lease, and the subsequent investigations not only stopped the deal, but also uncovered a scandal, which lead to guilty pleas, jail time, and a $600 million fine for Boeing.

In 2006, the Air Force held an open and competitive bid and on February 29, 2008 awarded the contract for its new KC-45A tanker to Northrop Grumman and its prime sub-contractor the European Aeronautic Defence and Space Company (EADS).  Some members of Congress have expressed anger and annoyance with the decision.  There have even been threats to cut off funding for the project.  Out of concern for the procurement process, the undersigned organizations agree that:

            The procurement process should be open, competitive, and fair;

By all outward indications, the recent process used by the U.S. Air Force to award the contract for its next generation of aerial refueling tankers appears to have been conducted in a transparent manner;

The prior process, which awarded a lease to Boeing through an earmark in the 2003 Defense Appropriations Conference Report, was not a wise use of tax dollars and led to corruption;

The Government Accountability Office (GAO) should be allowed to conduct its independent review of Boeing’s appeal without Congressional interference; and

Congress should respect GAO’s decision if the agency delivers a clean bill of health for the procurement process.

Organizations:                                                             Contacts:

American Conservative Union                                                Larry Hart  703-836-8602

Americans for Prosperity                                                        Phil Kerpen  202-349-5880

Citizens Against Government Waste                                      Leslie Paige  202-467-5300

National Taxpayers Union                                                      Pete Sepp  703-683-5700

Citizens Against Government Waste is a nonpartisan, nonprofit organization dedicated to eliminating waste, fraud, abuse, and mismanagement in government.