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Air Force revamps weapons buying ahead of tanker

Fri May 15, 2009 2:49 PM EDT
business, us, air-force, weapons-buying
Stephen Manning, AP Business Writer
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WASHINGTON — The Air Force is revamping its weapons buying methods as it prepares to award a $35 billion contract for refueling airplanes, a program the service was accused of botching last year.

The Air Force said Friday that its plans include filling more than 2,000 new contracting jobs, paying closer attention to costs at the early stages of weapons programs, and making sure contracting personnel are prepared for the complex defense acquisition process.

The service's top weapons buying officials on Friday defended the Air Force's record, saying the vast majority of contracts are awarded without any significant problems.

But there have been noticeable exceptions, foremost among them the troubled program to replace the Air Force's aging fleet of planes that gas up other jets mid-flight.

The Government Accountability Office faulted the Air Force's selection last year of a team composed of Northrop Grumman Corp. and Airbus parent European Aeronautics Defense and Space Co., saying the service had unfairly slanted the process against rival bidder Boeing Co.

Defense Secretary Robert Gates subsequently canceled the competition, the latest delay in almost a decade of failed attempts to build a new fleet of planes. Gates plans to restart the process again this summer.

"It obviously showed us we are not perfect, and we have some things we need to improve," said Lt. Gen. Mark Shackelford, of the Air Force's acquisition office.

Shackelford said part of the improvements will be ensuring that the contractors know exactly what the Air Force wants. Boeing's major complaint last year was that the Air Force didn't make it clear the priority it put on issues like size and how much the fuel the plane needs to be able to carry.

The Pentagon plans to hire around 20,000 new engineers, accountants, program managers and other contracting officials to make up for mounting staffing shortfalls in its corps of civilian and military personnel that oversee the major share of the defense budget. Gates has proposed spending about $210 billion on weapons during the 2010 fiscal year, about 40 percent of the Pentagon base budget.

At the Air Force, staffing problems are especially acute. Shackelford said the size of the service's civilian and military staff devoted to acquisition has dropped 20 percent since 1999. During that time, the amount of weapons money the Air Force overseas has risen 70 percent.

© 2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
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