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GAO Denies Tanker Bid Protest

In the latest in what has been a string of high profile developments associated with the U.S. Air Force KC-X Tanker program, the Government Accountability Office (GAO) has denied a bid protest levied by U.S. Aerospace and its Ukrainian partner.  The Air Force had rejected U.S. Aerospace’s bid because it was filed filed after the deadline stipulated by the Request For Proposals, but the company’s protest claimed otherwise.  The GAO, however, confirmed the Air Force’s position.  On Wednesday, Ralph White, GAO managing associate general counsel, stated that “this legal decision by GAO’s attorneys concludes that the U.S. Aerospace proposal to build the KC-X tanker was received after the deadline for the receipt of proposals,” and that the Air Force “acted appropriately in rejecting the proposal.”

The Air Force has continued to evaluate the bids from the Boeing Company and a partnership between EADS and Northrop Grumman.  In July, it was announced that the contract would be awarded in early November.  The contract is worth roughly $35B and has a twenty-year lifecyle.

To read more, please go to Bloomberg News.

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