Congress’ Right To Interfere In Contract

Recently according to the Seattle Post-Intelligencer, Congressman Norm Dicks (D-WA) addressed a local union meeting. Dicks is now the Chair of the defense appropriations sub-committee due to the death of Congressman Murtha (D-PA). This is the place where the defense budget begins its process for approval in the Congress.

Dicks supposedly talked about the new KC-X Tanker contract expressing concern that the U.S. Air Force would make allowances for EADS (EADS:P) to help them be able to bid. Dicks hoped that EADS would not bid leaving the way open for Boeing to win the deal.

Since right now Dicks controls how the entire Air Force budget is built it behooves the service to listen to him. At the same time they want a modicum of competition for the the third attempt to buy this key aircraft. Dicks represents a state that relies on Boeing (BA) to provide lots of good union jobs. He should support them — but not to the point of influencing the Air Force’s decision. Source selection should be based on what contract proposal best meets the requirements at the best price. Sole sourcing a contract of this size historically has led to cost and schedule overruns.

That doesn’t mean that Boeing will not be able to deliver, just a consideration that must be taken by everyone: Defense officials, industry and Congress.