ORAC
27th Feb 2007, 15:49
Defense News (http://www.defensenews.com/story.php?F=2582400&C=america)- U.S. Air Force Should Reopen CSAR-X Contest, Report Says
The Government Accountability Office (GAO) recommended Feb. 26 that the U.S. Air Force reopen bidding on its $15 billion next-generation search-and-rescue helicopter contract, declaring the selection process flawed.
After the CSAR-X contract was awarded to Boeing in November, Lockheed Martin and Sikorsky protested almost immediately. They questioned whether the Air Force and the Office of the Secretary of Defense had actually picked a medium-lift helicopter and whether the decision-making process reflected the one laid out in the Request for Proposals (RfP). The protest resulted in a Nov. 22 stop-work order for Boeing and sparked the GAO inquiry.
The original RfP said that the Air Force would take into consideration most probable life-cycle costs on the helicopter, including contracting costs and operations and support costs. The GAO found that the way those life-cycle costs were evaluated did not match the guidelines set down in the RfP.
GAO recommended that the Air Force change the proposal request, “reopen discussions with offerors, and then request revised proposals. If the evaluation of revised proposals results in a determination that Boeing’s proposal no longer represents the best value to the government, the agency should terminate its contract,” said a public GAO document. The decision also recommends that Sikorsky and Lockheed be reimbursed by the Pentagon for the cost of filing the protest.
Lockheed and Sikorsky both issued statements following the GAO announcement, and declined to comment further.
“We look forward to learning how the Air Force intends to implement the GAO’s recommendations,” said Lockheed spokesman Greg Caires. “We are confident that, when fairly evaluated on its demonstrated capabilities, the US101 helicopter will be selected as the best choice and best value to satisfy the Air Force’s CSAR-X requirement. We are prepared to engage in the next steps in this process and we remain committed to make the US101’s superior speed, stealth and survivability available to war fighters as quickly as possible.”
“We are pleased that the GAO has sustained Sikorsky’s protest and are reviewing the GAO’s decision to determine the appropriate course of action,” said Sikorsky President Jeffrey Pino. “We sought to ensure the selection process accurately evaluated the characteristics and performance of our HH-92 Superhawk helicopter. We have complete confidence that this helicopter is the best platform for the Air Force’s current and future needs,” he added.
While the suggestions of the GAO are not binding, industry insiders say it is extremely rare for an agency involved with a contractor to disregard a GAO recommendation. If the Air Force ignores the recommendations, it will have to explain its reasoning to a Congress already wary of the service’s acquisition process.
Boeing spokesmen did not return phone calls for comment.
The Government Accountability Office (GAO) recommended Feb. 26 that the U.S. Air Force reopen bidding on its $15 billion next-generation search-and-rescue helicopter contract, declaring the selection process flawed.
After the CSAR-X contract was awarded to Boeing in November, Lockheed Martin and Sikorsky protested almost immediately. They questioned whether the Air Force and the Office of the Secretary of Defense had actually picked a medium-lift helicopter and whether the decision-making process reflected the one laid out in the Request for Proposals (RfP). The protest resulted in a Nov. 22 stop-work order for Boeing and sparked the GAO inquiry.
The original RfP said that the Air Force would take into consideration most probable life-cycle costs on the helicopter, including contracting costs and operations and support costs. The GAO found that the way those life-cycle costs were evaluated did not match the guidelines set down in the RfP.
GAO recommended that the Air Force change the proposal request, “reopen discussions with offerors, and then request revised proposals. If the evaluation of revised proposals results in a determination that Boeing’s proposal no longer represents the best value to the government, the agency should terminate its contract,” said a public GAO document. The decision also recommends that Sikorsky and Lockheed be reimbursed by the Pentagon for the cost of filing the protest.
Lockheed and Sikorsky both issued statements following the GAO announcement, and declined to comment further.
“We look forward to learning how the Air Force intends to implement the GAO’s recommendations,” said Lockheed spokesman Greg Caires. “We are confident that, when fairly evaluated on its demonstrated capabilities, the US101 helicopter will be selected as the best choice and best value to satisfy the Air Force’s CSAR-X requirement. We are prepared to engage in the next steps in this process and we remain committed to make the US101’s superior speed, stealth and survivability available to war fighters as quickly as possible.”
“We are pleased that the GAO has sustained Sikorsky’s protest and are reviewing the GAO’s decision to determine the appropriate course of action,” said Sikorsky President Jeffrey Pino. “We sought to ensure the selection process accurately evaluated the characteristics and performance of our HH-92 Superhawk helicopter. We have complete confidence that this helicopter is the best platform for the Air Force’s current and future needs,” he added.
While the suggestions of the GAO are not binding, industry insiders say it is extremely rare for an agency involved with a contractor to disregard a GAO recommendation. If the Air Force ignores the recommendations, it will have to explain its reasoning to a Congress already wary of the service’s acquisition process.
Boeing spokesmen did not return phone calls for comment.