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Sat, Mar 10, 2007

GAO Says USAF Has 60 Days To Decide On CSAR-X

But Nonbinding Ruling Carries Little Weight

The US Air Force and the US Government Accountability Office are facing off over a contract that some competitors say was improperly awarded to Boeing.

As Aero-News reported, the $15 billion CSAR-X contract award for a new search-and-rescue helicopter was challenged by Sikorsky and Lockheed Martin, who said the Air Force changed the method by which it evaluated operating costs from that which was specified in the original request for proposal. The General Accounting Office agreed, and said the bidding should be reopened.

The Air Force responded that it would narrowly interpret the GAO's statement -- essentially treating it as a recommendation -- but move as quickly as possible to get the new Boeings into service.

But the General Accounting Office isn't backing down. On Wednesday, it gave the Air Force 60 days to comply with its ruling urging the service to reopen bidding.

There are no real teeth here, only political pressure -- as GAO rulings are nonbinding. The Air Force can adopt the recommendations fully within 60 days, or notify GAO that it does not plan to do so.

On paper, the Air Force can go ahead. But when military appropriations come before Congress, it's probably not good to have the federal government's auditors mad at you.

FMI: www.gao.gov, www.af.mil

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