Monday, June 8, 2009

Commentaries urge split buy

Congressman Jeff Miller of Florida and former Navy secretary John Lehmann wrote separate commentaries in Politico and Defense News, respectively, pointing out that buying tankers from Northrop Grumman and Boeing may be less expensive. Lehmann argues that annual competition used to be the norm. He cites examples that show making companies compete every year tends to drive down prices. Secretary of Defense Robert Gates strongly opposes a split tanker buy. If Boeing wins it will build the planes in Washington State, and if Northrop wins the planes will be built in Mobile, Ala. (Source: Politico, 06/07/09; Defense News, 06/08/09)