Background
The initial plan was to lease Boeing KC-767 tankers on a sole-source basis; Boeing is the only American company with the requisite industrial capability to manufacture large-body aircraft. As such, the KC-767 was initially selected in 2002 and in 2003 was awarded a US$20 billion contract to lease KC-767 tankers to replace the KC-135.
Led by Senator John McCain, several US government leaders protested the lease contract as wasteful and problematic. In response to the protests, the Air Force struck a compromise in November 2003, whereby it would purchase 80 KC-767 aircraft and lease 20 more.
Yet in December 2003, the Pentagon announced the project was to be frozen while an investigation of allegations of corruption by one if its former procurement staffers, Darleen Druyun (who had moved to Boeing in January 2003) was begun. Druyun pled guilty of criminal wrongdoing and was sentenced to nine months in jail for "negotiating a job with Boeing at the same time she was involved in contracts with the company". Additional fallout included the termination of CFO Michael M. Sears, the resignation of Boeing CEO Philip M. Condit, and Boeing paying $615 million in fines. In January 2006, the lease contract was formally canceled.
Read more about this topic: KC-X
Famous quotes containing the word background:
“In the true sense one’s native land, with its background of tradition, early impressions, reminiscences and other things dear to one, is not enough to make sensitive human beings feel at home.”
—Emma Goldman (1869–1940)
“Pilate with his question “What is truth?” is gladly trotted out these days as an advocate of Christ, so as to arouse the suspicion that everything known and knowable is an illusion and to erect the cross upon that gruesome background of the impossibility of knowledge.”
—Friedrich Nietzsche (1844–1900)
“They were more than hostile. In the first place, I was a south Georgian and I was looked upon as a fiscal conservative, and the Atlanta newspapers quite erroneously, because they didn’t know anything about me or my background here in Plains, decided that I was also a racial conservative.”
—Jimmy Carter (James Earl Carter, Jr.)