House Adds Language to Force Pentagon to Consider Subsidies to Defense Authorization Bill

The House of Representatives in their vote on the 2011 Defense Authorization Bill added an amendment sponsored by Washington and Kansas members to force the Pentagon to consider the WTO ruling on illegal subsidies when it comes time to consider EADS’ (EADS:P) bid. The Pentagon has made it clear in the past that their contracting and acquisition laws and regulations do not allow them to factor that into their cost evaluations. This language if it is in the final version of the bill when it is passed after Conference will supposedly make them do that.

One question though is the Air Force plans to receive bids on July and announce a decision in the late Fall. There is a good chance that the source selection if it follows that schedule will be complete before the bill makes it out of Congress. While the Authorization Act often is done before the Appropriations one it is often not complete by 30 September as it should be. The Pentagon could also argue to ignore the language setting up some sort of court fight. EADS could also adjust their prices to take into account the effect of the WTO ruling.

1 Comment »

  1. Sal Said,

    June 3, 2010 @ 8:37 am

    To the author… Thanks for giving EADS all those ideas! Congress isn’t willing to outsource this important defense program and this is a shot across the bow of the Air Force’s brass. If the Pentagon just picks the right aircraft this time around, rather then then playing politics with McCain (Who I hope loses his primary fight), then we can finally put this KC-X fiasco to bed and get our warfighters the best tanker available, the KC-767.

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