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Pentagon Tells Bidders To Stop Battling Over Lost Contracts

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The Associated Press

Published: May 25, 2008

WASHINGTON - Quit complaining.

That's the message from the Pentagon and Congress to defense companies that cry foul when they don't win contracts.

Resolving the protests costs the government time and money. That means it can take longer to build needed combat gear or buy critical supplies, making U.S. troops and American taxpayers the real losers.

Far more often than not, the complainers don't win anyway, according to statistics from the Government Accountability Office.

It's become a big enough problem that the House Armed Services Committee has raised the possibility of fining companies that submit "frivolous or improper" protests to the GAO.

Determining a frivolous or vindictive protest from a legitimate one is tricky business, though. In February, the Air Force selected a European-led consortium for a $35 billion contract to build aerial refuelers. Lawmakers who backed the competing bid by the Boeing Co. cheered the Chicago-based company's move to challenge the choice.

Boeing has argued the Air Force changed its method for evaluating the tanker it wanted after asking for proposals. That allowed a larger tanker offered by the European Aeronautic Defence and Space Co. and its U.S. partner, Northrop Grumman Corp., to beat Boeing's offer, the company said.
Northrop Grumman has said the contract could mean $500 million a year for Florida companies, including four subcontractors in the Tampa Bay area.
Northrop Grumman has said Florida would have seven contractors for tankers, including four Bay area companies: ABA Industries of Pinellas Park, Pall Aeropower Corp. of New Port Richey, Smiths Aerospace of Clearwater and L-3 Communications of Sarasota.

In Florida, the new tanker may replace some of the 16 aging KC-135 tankers now flown out of MacDill Air Force Base in Tampa.

MacDill, home of the 6th Air Mobility Wing, is one of 27 U.S. bases that Air Force Chief of Staff T. Michael Moseley identified in January as potential sites for the new tanker. The Air Force has not said when it will decide which bases receive the new tankers.

A ruling from the GAO on Boeing's protest is expected next month.

Tribune reporter Ted Jackovics contributed to this report.

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