The Government Accountability Office has disclosed why it sided, in part, with Alabama Aircraft Industries (formerly Pemco) in the company’s September 2007 protest of the Air Force’s $1 billion contract award to Boeing for KC-135 depot maintenance. “The record does not reflect any Air Force analysis as to the realism of certain changes Boeing introduced in its final proposals, or the potential risk associated with those changes; the solicitation required such analysis,” writes Michael Golden, GAO’s managing associate general counsel. Because GAO believes these shortcomings affected USAF’s evaluation of cost/price, it has recommended that the service go back and perform “the required realism and risk analysis” in this area. Golden also notes that GAO decided not to rule on AAII’s allegations of bias with regard to now-deceased Charles Riechers, the No. 2 civilian acquisition official who was the source selection authority, since there is an ongoing law-enforcement investigation into the cause of his death last fall. Riechers’s death was an apparent suicide; it came after a Washington Post article questioned the employment arrangement he had with a nonprofit while he awaited Senate approval to start his Air Force job. “It is our understanding that this investigation will encompass matters that may have a bearing on Pemco’s allegations of bias,” writes Golden.
The Air Force and Boeing agreed to a nearly $2.4 billion contract for a new lot of KC-46 aerial tankers on Nov. 21. The deal, announced by the Pentagon, is for 15 new aircraft in Lot 11 at a cost of $2.389 billion—some $159 million per tail.