Air Force to rebid $15B helicopter deal

Air Force to rebid $15B helicopter deal

	Published : Fri, 30 Mar 2007 22:48 By : Agencies Print this Story

WASHINGTON (AP) - A disputed $15 billion helicopter contract Boeing Co. won last fall will be revised and reopened for bidding, the Air Force said Friday.

A government watchdog agency had recommended rebidding the contract to upgrade 141 Sikorsky helicopters after a review of protests filed by Lockheed Martin Corp. and Sikorsky Aircraft, adivisionn of United Technologies Corp.

Boeing, which first won the contract Nov. 9, said Friday it will not protest the rebidding and plans to compete again. The Air Force has not yet set a new bid date.

Some experts predict Boeing will beat out Lockheed and Sikorsky again.

Even with the recommended revisions, it would be a 'slam dunk' for Boeing, said Loren Thompson, analyst for the Virginia-based Lexington Institute.

The Government Accountability Office had supported claims by Lockheed and Sikorsky that 'inconsistent' criteria were used in the initial bidding. But other complaints raised weren't valid, the GAO ruled Friday, six weeks earlier than expected.

GAO spokesman Michael Golden said the agency, auditing arm for Congress, was able to decide quickly because it had everything needed to make a recommendation.

In a statement, Air Force Brig. Gen. Michelle Johnson, 'This is good news for the Air Force. 'It allows us to focus on the GAO's Feb. 26 recommendation and move forward.'

That nonbinding GAO recommendation asked the Air Force to revise the bid to more accurately evaluate maintenance and other costs for upgrading the helicopters, which are used to rescue downed pilots.

Lockheed Martin spokesman Greg Caires said the company is likely to compete again after it reviews contract changes in the revised bid.

Kerry Gildea, a Boeing spokeswoman, said the company welcomed the Air Force's decision while Sikorsky spokesman Paul Jackson had earlier said the Air Force needs to correct errors made in evaluating the initial bids.

Shares of Lockheed Martin dropped 2 cents to $97 in aftermarket trading. The shares closed down $1.08 to $97.02in afternoon trading on the New York Stock Exchange, while shares of United Technologies fell a penny to end the day at $65 on the NYSE. Boeing shares ended down 85 cents to $88.91, also on the NYSE.