Boeing Likely To Contest GAO Decision On USAF Multi-Billion Dollar New Bomber Contract

The US Government Accountability Office has rejected a protest by Boeing and Lockheed combined in the new bomber contract awarded to Northrop Grumman.

The GAO upheld the US Air Force’s decision to award the contract estimated at $21.4 billion in the engineering phase in 2010 dollars and options to build the first 21 bombers. The USAF has not provided the cost of production for the first 21 planes but has said that if 100 planes were built, each unit would cost an approximate $511 million in 2010 dollars, abc news reported Tuesday.

Boeing would review the GAO decision before deciding on its next step, however it could protest to the federal claims court in Washington, the news website quoted an unnamed Boeing spokesperson as saying. Lockheed Martin has declined to comment.

The total cost of the contract is classified. The GAO says there are two parts — an engineering phase with an estimated value of $21.4 billion in 2010 dollars, and options to build the first 21 bombers. The Air Force hasn't given a cost for producing the first 21 planes but has said that if 100 planes were built, the average cost per plane would be $511 million in 2010 dollars.

Using those figures and adjusting them for inflation, the total cost of the program could be nearly $80 billion if the Air Force buys 100 planes, as Pentagon officials discussed in October.

"This confirms that the US Air Force conducted an extraordinarily thorough selection process and selected the most capable and affordable solution," Northrop spokesman Randy Belote said. He called the plane vitally important to national security.

The Air Force was happy with the GAO decision too, saying that the selection process was disciplined and impartial. In October, Air Force Secretary Deborah Lee James said that selecting Northrop "represents the best value for our nation," although financial terms of the competing bids were not disclosed.

Boeing's protest and details of the GAO's decision to uphold Northrop's win are classified. However, Ralph White, the GAO's managing associate general counsel for procurement law, said in a statement that "the technical evaluation, and the evaluation of costs, was reasonable, consistent with the terms of the solicitation, and in accordance with procurement laws and regulations."