Just in Case

While Defense Department leaders believe a final World Trade Organization resolution of the EADS-Boeing subsidies dispute is "many years away," as a briefing slide presented to lawmakers yesterday states, the potential monetary fall-out from the issue has already made its way into today's KC-X draft request for proposals.

A small clause included in the draft RFP's model contract is meant to ensure none of the offerors can charge any costs that may arise from a future WTO ruling to the U.S. government, lawmakers were told yesterday.

Clause H018 thusly reads:

Any penalties, taxes, tariffs, duties, or other similar-type costs imposed by a Governmental entity as a sanction, enforcement or implementation measure resulting from a decision in the complaints "Matters of European Communities and Certain Member States - Measures Affecting Trade in Large Civil Aircraft" or "United States - Measures Affecting Trade in Large Civil Aircraft" before the World Trade Organization shall not be included in the negotiated price of this contract, nor shall such costs be an allowable direct or indirect charge against this contract.