Defense seeks more time to weigh multiyear fighter jet deal
Deputy tells lawmakers the Pentagon did not receive an offer early enough to meet March 1 deadline.
The Pentagon has asked Congress for more time to consider a multiyear deal for F/A-18 aircraft, saying it needs to review an offer from the prime contractor, Boeing Co., before deciding whether to enter into a long-term financial commitment to buy the jets.
Lawmakers last year gave the Defense Department the go-ahead to pursue a multiyear procurement contract for F/A-18E/F Super Hornet fighters and E/A-18G Growler electronic attack aircraft, but set a March 1 deadline for officials to decide whether they would do so.
"We have received a viable offer from the prime contractor for a commitment on the pricing on a multiyear procurement only within the last few days," Deputy Defense Secretary William Lynn wrote leaders of the defense committees Friday. "This did not allow the department to properly evaluate the offer within the various timelines set forth in statute."
In his letter, Lynn did not request a new timeline, but said "we will work with Congress on how best to move forward" if defense officials determine that a multiyear procurement contract would be useful.
A multiyear commitment would cover the 124 Super Hornets and Growlers the Defense Department plans to buy between fiscal 2010 and fiscal 2013, which is 35 aircraft more than was planned a year ago. The Boeing-built planes are based on the same airframe.
On Feb. 3, Defense Secretary Robert Gates rejected the idea during testimony before the House Armed Services Committee, stating that the multiyear deal would shave 6.5 percent off the price of each plane -- far less than the 10 percent savings threshold customary for such long-term commitments.
Since then, advocates of the multiyear deal argued that Gates' data did not take into account the additional 35 aircraft, which they said would increase the discount. The Navy's fiscal 2011 budget request, sent to Congress Feb. 1, includes $1.9 billion to buy 22 Super Hornets and $1.1 billion for 12 Growlers.
At a House Armed Services Committee hearing last week, Navy Secretary Ray Mabus acknowledged under questioning that Boeing's offer would result in a 10 percent savings. A Boeing spokesman later confirmed that the firm "has provided the U.S. Navy with pricing information that enables cost savings of 10 percent under a multiyear contract."
House Armed Services Seapower Subcommittee ranking member Todd Akin, R-Mo., who elicited Mabus' testimony on the savings, said Monday he is encouraged the Navy seems supportive of a multiyear deal, but added he's worried Lynn's request for an extension represents "foot-dragging by the senior civilian leadership" within the Pentagon.
"This [10 percent] threshold has been met, so it is time for Secretary Gates to step up and make this multiyear happen," said Akin, whose district is near Boeing's St. Louis defense headquarters. "Anything less would raise serious questions about the priorities of the Department of Defense."