GAO still wants $15B Boeing deal rebid |
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Fri, 30 Mar 2007 18:14
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WASHINGTON (AP) - A government watchdog said Friday it recommends that a $15 billion contract awarded to Boeing Co. to upgrade 141 military helicopters should still be revised and reopened although it dismissed most issues raised in a protest by Lockheed Martin Corp. and Sikorsky, a division of United Technologies Corp.The Air Force has previously said it would follow the nonbinding recommendations of the Government Accountability Office on the contract to upgrade 141 Sikorsky helicopters used to rescue downed pilots.Some experts say Boeing will still win the deal even if it's rebid. Meanwhile, the contract, awarded Nov. 9, remains on hold.The GAO's final decision would be a 'slam dunk' for Boeing, if the Air Force reopens competition to more accurately evaluate maintenance costs, said Loren Thompson, analyst for the Virginia-based Lexington Institute. 'All the dozens of complaints filed by Lockheed and Sikorsky have been denied,' said Thompson.The GAO supports the protesters' contention that 'inconsistent' criteria were used in the initial bidding. Even though the GAO still wants the contract rebid, it said Friday, six weeks earlier than expected, that other complaints raised weren't valid.GAO spokesman Michael Golden said the agency expedited its decision because it had everything needed to make a final recommendation.The Air Force could not be immediately reached for comment.Representatives from Lockheed Martin, Sikorsky and Boeing could not be immediately reached for comment.Shares of Lockheed Martin dropped 59 cents to $97.48 in afternoon trading on the New York Stock Exchange, while shares of United Technologies dropped 34 cents to $64.75. Boeing shares were down 80 cents to $88.962also on the NYSE.Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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