The funny business of defense procurement. The fate of the Air Force's refueling tanker program remains, well, up in the air. While politicians are pressuring the Pentagon to split the order between the original winner, Northrop Grumman/EADS and challenger Boeing, Defense Secretary Robert Gates still prefers a "winner take all" decision. Some speculate it may require a Presidential veto to ensure the Pentagon gets its way.
This is “certainly the time you want to start getting into the market,” said Arthur Hogan, managing director at Jefferies. He offered CNBC his current investment ideas.
The administration’s plan to halt the $13 billion helicopter program, announced this month, will leave the government with little to show for the $3.2 billion it has spent since the Bush administration set out to create a futuristic craft that could fend off terrorist attacks and resist the electromagnetic effects of a nuclear blast.
Thousands of daily attacks on federal and private computer systems in the United States — many from China and Russia, some malicious and some testing chinks in the patchwork of American firewalls — have prompted the Obama administration to review American strategy.
Plus, Cramer highlights why Obama could be good for defense stocks and why Goldman Sachs had the right idea for balance sheet management.
General Dynamics is drawing call activity as Wall Street analysts appear conflicted over the outlook for GD and other defense contractors. Options traders are playing a May 40-45 call spread that is looking for General Dynamics to bounce after dropping more than 30 percent in the last quarter.
"Today, the Department of Defense notified the Congress and the two competing contractors, Boeing and Northrop Grumman, that it is terminating the current competition for a U.S. Air Force airborne tanker replacement...."
The Wall Street Journal reports the Pentagon is canceling the $35 billion tanker competition because it can't pick a winner by New Year's.
From The Seattle Times: "Air Force tanker guidelines to come next week". That was written August 21st. Wrong. From The Financial Times: "An announcement of the requirements, or request for proposals, could come as early as tomorrow." That was written Monday. Also wrong.
Both bidders in the $35 billion tanker competition met with Pentagon officials and said their piece over the new request for bids (the "RFP"). The difference in their responses afterwards may give you a clue as to how it went.
The chances are "pretty good" that Boeing is truly considering the threat, because the new Pentagon request from bidders contains two things--a tanker ready next year, and a larger aircraft--which are both "bad for Boeing."
The Pentagon has released its "draft" of requirements to Boeing and Northrop Grumman in what it wants in a new air refueling tanker, and, at first blush, advantage Northrop.
Today the Department of Defense is submitting a new "draft request-for-proposal and source selection process" for the air refueling tanker. In other words, we find out what the Pentagon is looking for in a new plane, and how it will be incorporating the changes suggested by the Government Accountability Office.
Honeywell International Friday reported quarterly profit jumped 18 percent, topping expectations, and raised its full-year earnings forecast, citing strong demand for aircraft electronics and environment and security control systems used in large commercial buildings.
I’ve got to stop talking about IndyMac and the banking crisis. Time to move back to the Air Force tanker crisis involving Boeing and Northrop Grumman. As I got home from DAY 3 of "THE INDYMAC BANK RUN" I finally got a chance to open up this week’s Aviation Week (aka “Aviation Leak”) which has an interview with Boeing CEO Jim McNerney.
Protectionism is not good for anybody and could hurt trans-Atlantic relations, the chief executives of EADS and Northrop Grumman told CNBC referring to the largest-ever tanker deal, which last week was reopened by the US department of defense.
The House Air and Land Forces Subcommittee is holding a hearing today on how the Air Force Tanker selection process went so wrong. Fifteen minutes into the hearing, they had to adjourn to go vote on other matters. But they'll be back.
On Bank of America CEO Ken Lewis' speech on mending the mortgage markets, it turns out Mr. Lewis isn't universally loved.
Gates is putting Under Secretary John Young in charge of picking a winner, a final blow to the Air Force. But Acting Secretary of the Air Force Mike Donnelly says he fully supports that decision.
Alliant Techsystems Inc. , a military contractor and aerospace company, said Wednesday it will supply rockets to the U.S. Air Force under a contract worth as much as $250 million.