U.S. May Wait To Award Chopper Pact

Team Infidel

Forum Spin Doctor
Wall Street Journal
September 18, 2008
Pg. 10

By August Cole
The Pentagon may hold off on awarding a $15 billion U.S. Air Force rescue-helicopter contract this fall if it is likely that the losing bidders could successfully protest the decision for a third time, the Pentagon's top weapons buyer said Wednesday.
During an interview, John Young, the Defense Department's top weapons buyer, said he had no reason right now to believe the selection won't pass muster, but his office isn't taking any chances. "If we think there's risk there, it won't go forward," he said.
Mr. Young said his deputy and a team of advisers are making sure the Air Force has closed any shortcomings similar to those that recently fouled a $40 billion aerial-tanker contract, now postponed until the next presidential administration.
"If we can assure the secretary of the Air Force and the secretary of Defense that we believe the government has done its work properly and should prevail in a protest, I think that award will be made," Mr. Young said.
The Air Force had hoped the helicopter contract, known as CSAR-X, would showcase its weapons-buying prowess. Instead, the contract has been successfully protested twice since the government picked Boeing Co. to build the helicopters. Losing bidders Lockheed Martin Corp. and United Technologies Corp.'s Sikorsky helicopters both filed protests with the Government Accountability Office that were upheld, resulting in a new competition.
The award is one of the last remaining tests of Air Force and Defense Department contracting during the Bush administration. Any further delay would likely push the decision on which company should build 141 search and rescue helicopters into the hands of the next administration.
Defense Secretary Robert Gates already has shown he's willing to take such steps. Last week, Mr. Gates decided to call off a heated and politically charged battle between Boeing and a team of Northrop Grumman Corp. and European Aeronautic Defence & Space Co. over the aerial-refueling tanker deal.
Air Force officials have recently talked about simplifying the requirements of the tanker contract. The Air Force had 37 mandatory requirements, but some 800 others that it deemed less important. "Having that many tradeable requirements creates a fertile field for protest issues," said Mr. Young.
Mr. Young said that the government must accept responsibility for its shortcomings in the tanker competition, but he defended the initial decision to pick Northrop for the contract. The ensuing aggressive legal wrangling, however, threatens to set a precedent.
"Frankly, the circumstances and course of events are rewarding bad behavior, which cannot become the norm for defense acquisition," he said.
 
Back
Top