DoD and USAF agree to recompete KC-45 contract
Filed under: Boeing, Department of Defense, EADS, GAO, Military Aviation, Northrop Grumman Corp., Proposal, Protest, U.S. Air Force, development program, logistics, production program
In light of the GAO report the USAF and DoD decided to recompete the new tanker contract. See an article here. This, like the CSAR-X, means that a whole new competition will be held. The Air Force will rewrite the RFP and Boeing and Northrop Grumman will resubmit proposals. Much of the work preparing these will be already done which will speed up the process for the bidders.
GAO to decide KC-45 protest soon
Filed under: Boeing, Congress, Contract Awards, EADS, Federal Budget Process, GAO, Military Aviation, Northrop Grumman Corp., Protest, U.S. Air Force, commercial aviation, logistics, production program
This article is a good summary of the KC-45 contract. The GAO is supposed to rule on Boeing’s protest within the next two weeks. One would have to bet that they will disallow the protest. There is a chance though, that somehow the Air Force screwed up in how they applied the criteria. Then the process would be reopened again, like the CSAR-X. The article also raises the issue of the US Presidential election. John McCain was the key person that got Boeing in trouble over the attempted lease deal five years ago, and Senator Obama represents the state where Boeing now has its headquarters. Congress has also held off weighing in while the protest wound its course. It is best to think that this is not over yet.
Looking to buy DRS
Filed under: Acquisitions, Finemeccanica, Italy, SETA, production program
This article discusses the idea that Finmeccanica, the Italian defense conglomerate, is looking at DRS Technology for an American acquisition. Like EADS and BAE the Italian company has been expanding its presence in the US. Its helicopter arm, Augusta Westland, won the VH-71 Presidential helicopter teamed with Lockheed Martin and is also trying to win the CSAR-X recompete post-protest. DRS which makes advanced sensors and electronics while providing SETA services has long been an attractive take over target. It’s stock though has done very well recently and for Finmeccanica to buy it would require a substantial investment. Read more
After debriefs protest to come
Filed under: Boeing, Contract Awards, EADS, GAO, Northrop Grumman Corp., Protest, U.S. Air Force, commercial aviation, logistics, production program
According to press reports Boeing will protest the KC-45 award to Northrop-Grumman and EADS. They are supposedly going to the General Accounting Office (GAO), which is the middle level. The lowest is the agency making the decision, here probably Air Force Material Command, and the highest is straight to Federal Court. They can still go to court if they disagree with the GAO decision. If you go to court you will most likely just get some money, not the contract. The GAO if it upholds the protest will most likely direct recompetition. See the CSAR-X for an example of that, which funnily Boeing won but Sikorsky and Augusta Westland won on protests. Northrop Grumman on the other hand put out a press release on why they won.
Boeing and USAF attempt to mend ways
Filed under: Boeing, Contract Awards, Federal Budget Process, Lockheed Martin, Protest, Sikorsky, U.S. Air Force, production program
In this detailed article from The Washington Post, the relationship between the Air Force and Boeing is examined relative to the Darleen Druyun scandal. The complete article is here. Ms. Druyun was the senior Civil Servant in the Air Force’s acquisition office. She was negotiating for a job with Boeing while representing the Air Force in contract negotiations. That is about the biggest, and simplest, conflict-of-interest a government employee can have. Ms. Druyun’s daughter also some how ended up with a job at Boeing as well. The fall out from the case led Ms. Druyun to go to jail, and Boeing to pay a large fine and make a lot of promises.
The article is discussing two major awards the Air Force will make soon for two new aircraft. The KC-X to supplement the aged KC-135; and a new rescue helicopter - the CSAR-X. Boeing and Druyun got into trouble over an attempt by the Air Force to lease replacement tankers in 2002. Boeing had won the CSAR-X contract with a version of the C-47, but the GAO upheld a protest by Sikorsky and Lockheed Martin, and the contract had to be re-competed.
This article highlights some of the issues inherent in government contracting.
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