The Project on Government Oversight

Fill 'Er Up: Back-Door Deal for Boeing Will Leave the Taxpayer on Empty
May 7, 2002

Using back-room political tactics, Congress in December 2001 authorized the U.S. Air Force to lease 100 Boeing 767 converted tanker aircraft. Not only would a lease deal cost the taxpayers billions of dollars more than purchasing the tankers outright, it would likely have the effect of reducing the numbers of tankers in the Air Force. In a May 2002 report, the GAO concluded that with relatively cheap engine and avionics upgrades, the current fleet of 545 KC-135 tankers would not need to begin being replaced until 2040.

The Pentagon will spend $61 billion during fiscal year 2002 just to develop and purchase new weapons systems, aircraft, and ships. In a democracy, it is essential that the federal government follow it's own procurement rules and laws for buying weapons. The process must be followed to ensure that U.S. fighting men and women get the best possible weapons and the taxpayers get the most for their money. The Boeing 767 tanker lease proposal is a textbook case of bad procurement policy and favoritism to a single defense contractor. Without public debate, Congress brashly subverted the competitive bidding process by authorizing the Air Force to purchase the tankers without competitive bidding.

Organizations call on Senate to vote against the Air Force leasing Boeing 767s at a price dramatically higher than the cost of direct purchase
December 19, 2001

Heavy Lifting for Boeing: Sweetheart Deal Helps Defense Contractor and Hurts Taxpayers
March 1, 2001

A December 2000, the Air Force proposed a possibly illegal arrangement to declare Boeing's C-17 military cargo airlifter a "commercial item" -- even though the government is the only purchaser of this plane. The result would be reduced financial oversight of any future Air Force purchases of the cargo plane. The U.S. taxpayers would shoulder a huge sum to artificially create a commercial market for a private company to haul bulky and heavy "outsized" cargo. 

The C-17 proposal is only the latest in a series of recent attempts by defense contractors to remove financial oversight from government auditors and at the same time improperly increase their profits. The costly plan would be footed by the taxpayers and would give preferential treatment to a private frieght hauler.

GAO finds misconduct tied to Druyun and recommends a new competition for Small Diameter Bomb contract
Anthony H. Gamboa, General Counsel, GAO, Government Accountability Office
February 18, 2005 

Letter to Senators Robert Byrd and Ted Stevens from Sen. John McCain
Senator John McCain,
December 11, 2001 

Letter to Rep. Kent Conrad from OMB Director Mitchell Daniels
Mitchell Daniels,
November 2, 2001 

Tanker mess exposes problems in Pentagon, By Sean Riley, Seattle Times, July 9, 2008 

Analysis: USAF's great tanker debacle, By Shaun Waterman, United Press International, June 19, 2008 

Chronology-U.S. Air Force tanker saga rumbles on, By Andrea Shalal-Esa and Bill Rigby, Reuters News, June 18, 2008 

When Public Advocates Line Up for Corporations, By Robert O'Harrow Jr. and Dana Hedgpeth, Washington Post, April 3, 2008 

Air Force keeps tanker freeze, By Sean Reily, Press-Register, March 18, 2008 

Ethics Vote, , The Hill , March 11, 2008 

Air Force contract appeal rejected, By George Talbot, Press Register, February 5, 2008 

Northrop zeros in on tanker contract: Test of key component called flawless, By Richard Burnett, OrlandoSentinel.com, August 21, 2007