GAO Upholds Boeing Protest over Tanker Contract

Breaking news from the Government Accountability Office related to the much-hyped $35 billion refueling tanker contract that the Air Force awarded to a Northrop Grumman/EADS partnership earlier this year (see BudgetBlog coverage here, here, and here). In what is being described as a "stunning" decision, the GAO has upheld a protest of the contract award lodged by Boeing. CongressDaily reports: In a stunning decision, GAO today announced it has sustained a protest filed by Boeing Co. over the Air Force's decision to award a lucrative contract for aerial refueling tankers to a team led by Northrop Grumman and EADS, the European firm behind Airbus. GAO's decision followed a 100-day review of the Air Force's selection process for the $35 billion program. GAO recommends that the Air Force reopen discussions with the contractors, obtain revised proposals and make a new decision. The service was also asked to reimburse Boeing for the cost of the protest. I guess it is back to the drawing board for the Air Force. UPDATE: More information on the GAO decision is available in this article from The Hill: GAO sides with Boeing.
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