GAO: Air Force cost review inconsistent |
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Wed, 07 Mar 2007 22:35
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WASHINGTON (AP) - A government watchdog agency on Wednesday said the Air Force did not apply consistent criteria in reviewing proposals for $15 billion helicopter contract that was awarded to Boeing Co. last fall.The Government Accountability Office, which last month backed a complaint filed by Lockheed Martin Corp. and United Technologies Corp.'s Sikorsky Aircraft, said the Air Force reviewed the cost of bids using different criteria than those laid out in its request for proposals. The GAO, in a nonbinding recommendation, called on the Air Force to reopen discussions with all competitors and to request revised proposals.Lockheed and Sikorsky filed individual protests shortly after the Air Force on Nov. 9 awarded to Boeing a contract to upgrade 141 search and rescue helicopters. The companies said the service applied different criteria to evaluate the various bids and provided competitors with varying instructions on what capabilities the military was seeking in a new helicopter.The Air Force has within 60 days to respond to the GAO's recommendations.While the GAO said the Air Force used inconsistent criteria to judge the aircraft's purchase price, operations and support costs, it noted that other criteria, including the aircraft's mission capabilities and reliability, were not mishandled.Shares of Lockheed dropped 11 cents to $96.79 in afternoon trading on the New York Stock Exchange, while shares of Boeing gained $1.32 to $89.13. United Technologies gained 14 cents to $64.32 on the NYSE.Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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Air Force reviews GAO report on contract 