Boeing and Lockheed protest Air Force’s snub on long-range bomber

The Government Accountability Office has 100 days to issue its decision.

Boeing and Lockheed, the world’s two largest defence firms by annual revenue, reportedly tried to underbid Northrop on cost to try secure the “strategically important” bomber contract, and Northrop’s selection was seen by a few analysts as an upset win.

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Both Boeing and Lockheed appear to have developed case of selective amnesia. “We look forward to the GAO reaffirming the Defense Department’s decision so we can continue work on this critically vital program”. “Companies generally protest contract awards because of concerns about the government’s fairness in setting requirements or implementing evaluation criteria”, the paper says.

Northrop Grumman has demonstrated its Freedom 550 gateway radio terminal that performs as a communications relay among fourth and fifth-generation aircraft. Northrop Grumman produced the Air Force’s youngest bomber, the stealthy B-2.

The companies said that their proposal offered the government the best bomber at a “cost that uniquely defies the prohibitively expensive trends of the nation’s past defense acquisitions”.

“Although it is every competitor’s right to file a protest, the Air Force is confident that the source-selection team followed a deliberate, disciplined and impartial process to determine the best value for the warfighter and taxpayer”, it said.

The situation is reminiscent of the air force’s KC-X tanker fiasco in 2008, where Boeing successfully challenged tthe selection of the EADS/Northrop KC-45.

Moreover, the demonstration ensured that Northrop Grumman can integrate an OMS solution with another prime contractor’s system, the company stated.

Northrop also touted that it is the only company to design and build a stealth bomber.

For Boeing, the bomber contract is “crucial” for its defense business, hit by a lack of orders for its F/A-18 and F-15 fighter jets, whose production timetables run only until 2017 and 2020, respectively, Thompson said.

Meanwhile, the demonstration further validated the US Air Force’s OMS acquisition initiative, quickly taking advantage of new or improved capabilities at a reduced cost. If the GAO sustains the protest, it could recommend that the Air Force redo the competition.