Decisions on Controversial Defense Contracts on Hold until Next AdministrationOctober 31, 2008
Over the course of the last month, the Pentagon — specifically the Air Force — has postponed or canceled several high profile contracts that were being disputed by defense contractors. The Air Force put on hold a $15 billion contract for search-and-rescue helicopters that was initially awarded to Boeing in 2006. The losing bidders (Lockheed Martin and United Technologies) protested the award twice and each time the Air Force had to re-open the competition. The Wall Street Journal reported that procedural issues prompted the latest delay. The Air Force released a statement saying, "The purpose of the amendment is to further clarify how the Air Force will make its source selection decisions." An Air Force spokesman said a new winner would be picked next year, according to the newspaper. The other recently postponed decision is for a multi-billion-dollar satellite communications system. The competition for this contract had come down to Boeing and Lockheed Martin for the transformation satellite program. Gary Payton, the Air Force deputy undersecretary for space programs, said that officials scoured the bidding process to avert another major contract dispute, according to Reuters. This is largely a reaction to the current trend in which the losing bidder wages draining legal protests that inevitably become politically charged. The Pentagon has become increasingly cautious after being scorched for its handling of the competition for a new fleet of in-air refueling tankers that would have replaced the refueling tankers in use for more than 50 years. That debacle even got a prominent mention in one of the presidential debates. |
In the dwindling days of the Bush administration, the Pentagon appears to be passing the buck on controversial contract decisions to the next administration.
|
