U.S. Air Force Followed Rules In $15 Billion Contest

Team Infidel

Forum Spin Doctor
Bloomberg.com
November 11, 2008
By Tony Capaccio, Bloomberg News
The U.S. Air Force didn't break rules when it changed four key requirements in a $15 billion rescue-helicopter program, according to a draft Pentagon audit that removes a hurdle to awarding the delayed contract next year.
The Air Force followed procedures and got the changes approved by a Joint Chiefs of Staff council that reviews the need for new weapons, the inspector general's draft report says. The exoneration comes as the service also faces criticism from Pentagon officials and lawmakers about its management of nuclear weapons and a separate $35 billion aerial-tanker competition.
Changes to the aircraft's payload, cabin space, fuel range and mission-readiness benchmarks were ``properly vetted'' through the council ``in accordance with acquisition guidelines,'' according to the nine-page document dated Oct. 31.
The Combat Search and Rescue helicopter program has been delayed since 2006 after Lockheed Martin Corp. and incumbent United Technologies Corp. protested their loss of the contest to Boeing Co. The Air Force is in the final stages of selecting a winner between the three for a development and production contract that may reach 141 helicopters.
The Senate Armed Forces Committee requested the audit in February to see whether the Air Force mishandled the program.
The service changed requirements ``to address contractor requests for clarification and to ensure full and open competition,'' the draft said. Some of the changes were sought by Lockheed and United Technologies' Sikorsky Aircraft unit.
Air Force spokeswoman Lieutenant Colonel Ann Stefanek said in an e-mail the service received the draft last month and is in the process of providing a response to the inspector.
``Since a final report has not been released, it would not be appropriate for the Air Force to release specific information contained in the still-draft document,'' she said. ``Should the final report recommend any changes, the Air Force would seriously consider its recommendations.''
The Air Force has been under fire since parts designed to arm nuclear warheads were erroneously shipped to Taiwan and a B- 52 bomber flew across the U.S. last year mistakenly carrying six nuclear devices. The lapses resulted in the June firings of the Air Force secretary and chief of staff and the disciplining of six generals.
The Government Accountability Office this year also sided with Boeing in saying the service made mistakes in a refueling- tanker competition won by Northrop Grumman Corp. That contest will also be replayed in 2009 with a contract award no earlier than March 2010.
The Air Force last month announced a ``minor delay'' to the helicopter contest while it clarifies how the service will make its selection.
Lockheed Martin and Sikorsky requested, for example, that the Air Force Special Operations Command revise a crucial performance requirement that the aircraft fly 325 miles roundtrip without refueling because they could not meet the goal. The Air Force reduced the requirement to 275 miles.
``Our review of the contractor-submitted documentation confirmed these concerns and the rationale for adjusting'' the requirement, it said. ``We found no indications that the changes will adversely affect special operations capabilities in the Global War on Terror.''
Combat rescue officials told investigators that delays in fielding the new helicopter ``will affect combat search operations because of critical shortfalls'' in the current 1980s-era HH-60G fleet.
 
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