GAO finds no criminal wrongdoing in tanker contract award

In continuing coverage from previous editions of Daily Executive Briefing, the Washington Post (7/10, Hedgpeth) reported, "Attorneys with a government oversight agency said yesterday that there was no evidence of criminal wrongdoing in the Air Force's award to Northrop Grumman of a $40 billion deal to build new aerial refueling tankers." Daniel I. Gordon, deputy general counsel at the Government Accountability Office (GAO), said that "there was not an iota of intentional wrongdoing by any Air Force official." Instead, the agency "concluded that the Air Force had not followed the ground rules it set out."

Bloomberg (7/10) quoted Gordon as saying, "Bias, undue influence or other intentional wrongdoing was not alleged by Boeing nor did the GAO see any evidence of such intentional wrongful conduct by the Air Force." The article also pointed out that Defense Secretary Robert Gates's "decision to transfer management of the tanker selection to [Pentagon Undersecretary for Acquisition John] Young marks the second time in three years that the Air Force has lost its decision-making authority." Concerning the "eight problem areas" highlighted by the GAO, Young said the issues "are correctable." He added, "None of the findings suggest a concern with our acquisition strategy, and we will continue with a 'best-value' source selection approach, with the intention of awarding a single contract."