The US Air Force plans to scrap its controversial contracting policy for the Lockheed Martin C-130J, and will negotiate any future purchases or maintenance deals using traditional procedures.
Buying the C-130J on commercial terms, which Lockheed Martin required after the USAF withdrew from the development programme in the early 1990s, has been a source of friction for months. In July 2004, the Pentagon's inspector general sharply criticised the structure of the C-130J project. More recently Senator John McCain questioned the USAF's oversight powers under the deal's terms.
Commercial contracting allows the government to buy an existing product off the shelf without having to pay the development costs, but also limits purchasers' rights to view pricing and cost data.
However, the new contracting procedures will apply only to future maintenance and support deals unless a Bush administration proposal to halt production on the C-130J by year-end is reversed.
Source: Flight International
