GAO Recommends Helicopter Contract Bids Be Reopened
The Air Force was "inconsistent" in its requirements when it awarded a $15 billion contract to Boeing Co. to build military helicopters, shutting out two other companies, the auditing arm of Congress said last week.
The Government Accountability Office said the Air Force should reopen discussions with all competitors and request revised proposals. The GAO's decision is nonbinding.
Chicago-based Boeing beat out rivals Lockheed Martin Corp. and Stratford-based Sikorsky Aircraft in November for the contract to build 141 helicopters by 2019 for the Air Force's fleet of rescue aircraft, which are used to recover downed pilots. The company said it would build the helicopters at its plant in Ridley Park, Pa., near Philadelphia.
Connecticut lawmakers praised the GAO's findings.
"This is a first step toward getting these helicopters built here in Connecticut by the best workers in the world," Rep. Rosa DeLauro, D-Conn., said in a statement. "Sikorskys workers deserve the chance to compete on a level playing field for the right to build the next combat search-and-rescue helicopter for the Air Force, and I believe that they will win this contract when it is re-bid."
Sen. Joseph Lieberman, D-Conn., said in a statement he was "hopeful the Air force will follow the GAO recommendations to ensure the nation get the best possible helicopter for this job."
The GAO said the Air Force's evaluation of each company's bid was "inconsistent" with what was in the initial solicitation. Lockheed and Sikorsky Aircraft, a unit of United Technologies Corp., both filed protests over the contract award.
Some industry and Wall Street analysts had predicted the contract would go to Bethesda, Md.-based Lockheed. Its version had a roomier cabin and three powerful engines and was cheaper than Boeing's. The Boeing version was a modified version of its CH-47 Chinook helicopter.
The contract has been on hold while the GAO reviewed the matter.
The Air Force did not immediately respond to a request for comment. It has 60 days to respond to the GAO.
If a second review by the Air Force concludes that Boeing is no longer best for the contract, it should terminate the contract, the GAO said.
Joseph LaMarca Jr., a Boeing spokesman, said the company is reviewing the GAO recommendation, but it still believes its bid provides the best value to the Air Force. The company has put on hold hiring about 200 new engineers to work on the contract at the Pennsylvania plant.
Both Lockheed and Sikorsky issued statements praising the GAO's recommendation.
WBJ Web Partners
Most Recent
Most Recent
0 Comments