(Editor’s Note.  The particularly large dollar value and wide net of companies affected make this recent GAO decision significant to many companies.)

The GAO June 18 sustained Boeing Co.’s protest of the award of a $35 billion contract for the procurement of aerial refueling tankers to the team of Northrop Grumman Systems/European Aeronautics Defense and Space Co.  Though the original decision is under protective order the GAO provided a summary of the decision stating it sustained Boeing’s protest primarily for the following reasons: (1) failed to take into account Boeing’s offer to satisfy more non-mandatory technical requirements than Northrop (2) improperly gave Northrop extra credit for exceeding key performance parameters despite the RFP stating no such consideration would be provided for exceeding key performance parameters (3) did not adequately determine if Northrop’s proposed tankers could refuel all current planes (4) conducted “misleading and unequal” discussions with Boeing where it first informed Boeing it had fully satisfied a key performance parameter but subsequently determined that it only partially met this objective and failed to inform Boeing of the change (5) failed to take into account Northrop’s refusal to agree to a specific solicitation requirement i.e. achieve depot-level maintenance within two years) and (6) Air Force admitted it had made several errors in computing life-cycle construction costs that erroneously made Boeing the higher life cycle cost bidder.  The Air Force is now considering how to rebid the contract (The Boeing Co., GAO B311344). 

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