JFC Fuller said:Breaking Defense Story: http://breakingdefense.com/2016/02/gao-upholds-lrsb-award-to-northrop/
Is that a smart move, I asked aviation expert Richard Aboulafia of the Teal Group? “You’ve got the Air Force, OSD and now the GAO saying no to Boeing. I think the overwhelming majority of opinion seems to be no,” he said. After all that, Boeing better have “a real silver bullet” to justify going to court.
Why then is Boeing not graciously nodding and congratulating Northrop? “I think they regarded this in many ways as a must-win contract,” Aboulafia told me, “and it’s tough to live in the aftermath of this and come up with a fallback plan.”
The following is a statement from Ralph O. White, Managing Associate General Counsel for Procurement Law, GAO, regarding today’s decision resolving the protest filed by The Boeing Company, B-412441, February 16, 2016
On February 16, 2016, the U.S. Government Accountability Office (GAO) denied a protest filed by The Boeing Company, Defense, Space & Security, of St. Louis, Missouri, challenging the Department of the Air Force’s award of a cost reimbursement contract to Northrop Grumman Corporation, of Redondo Beach, California, for engineering and manufacturing development, and early production, of the Long Range Strike Bomber. Boeing argued that the Air Force’s evaluation was fundamentally flawed with respect to the assessment of the offerors’ proposed costs, and the technical evaluation of Northrop’s proposal.
The current contract for the Long Range Strike Bomber is comprised of two parts–the Engineering and Manufacturing Development phase and the subsequent options for the production of the first 21 aircraft. As initially announced by the Air Force, the Engineering and Manufacturing Development phase has an estimated value of $21.4 billion in 2010 dollars. The Air Force has not provided a public figure for the production cost of the first 21 planes, and the total cost of this contract is classified. The Air Force has explained that “the fixed price production award supports the average per unit cost of $511 million per aircraft (stated in 2010 dollars with a production purchase of 100 aircraft).”
GAO reviewed the challenges to the selection decision raised by Boeing and has found no basis to sustain or uphold the protest (emphasis added). In denying Boeing’s protest, GAO concluded that the technical evaluation, and the evaluation of costs, was reasonable, consistent with the terms of the solicitation, and in accordance with procurement laws and regulations.
The details of Boeing’s challenges, and GAO’s decision resolving them, are classified and covered by the terms of a protective order issued by GAO for the protest. Accordingly, this decision must undergo a security classification review by the Air Force, and is not available for public release.
bobbymike said:Boeing Protest Rejected, But Problems Just Beginning For U.S. Air Force's Next Stealth Bomber
There is good reason to suspect that the Long Range Strike bomber program will founder long before the first B-3 is scheduled to join the force circa 2025. The problem, in a nutshell: the USAF's budget to modernize its aging fleet of planes is inadequate, and that has led to an unrealistically...www.forbes.com
bobbymike said:Boeing Protest Rejected, But Problems Just Beginning For U.S. Air Force's Next Stealth Bomber
There is good reason to suspect that the Long Range Strike bomber program will founder long before the first B-3 is scheduled to join the force circa 2025. The problem, in a nutshell: the USAF's budget to modernize its aging fleet of planes is inadequate, and that has led to an unrealistically...www.forbes.com
sferrin said:bobbymike said:http://www.forbes.com/sites/lorenthompson/2016/02/16/protest-rejected-but-the-bombers-problems-are-just-beginning/#7d917c37677a
I wonder if he'd being saying that if the protest had been upheld. I'm thinking not.
Triton said:We'll see whether Northrop Grumman knowingly underbid the LRS-B contract or not. I presume that Northrop Grumman would have filed a GAO protest if the Boeing-Lockheed Martin team had won the contract. It seems fashionable to hate Boeing, while Lockheed Martin and Northrop Grumman aren't any better. Moving production to lowest cost regions and breaking unions is capitalism. We shouldn't hate Boeing and Lockheed Martin for filing the GAO protest. It's just business.
Triton said:We'll see whether Northrop Grumman knowingly underbid the LRS-B contract or not. I presume that Northrop Grumman would have filed a GAO protest if the Boeing-Lockheed Martin team had won the contract. It seems fashionable to hate Boeing, while Lockheed Martin and Northrop Grumman aren't any better. Moving production to lowest cost regions and breaking unions is capitalism. We shouldn't hate Boeing and Lockheed Martin for filing the GAO protest. It's just business.
flateric said:OK, guy is comparing prices for bomber and widebody airliner saying that first must somehow correspond to the other.
That's enough for me to judge a level of competence.
What I think Thompson means when he writes "a typical Boeing widebody jetliner costs more than what the Air Force thinks it is going to be getting its future bombers for" is that the Northrop bid unit price and possibly the most probable cost estimate are lower than the price of a widebody airliner. We know these figures are well below the 511m $ independant cost estimate based on historically spiralling costs, just how much below is the question. This also wouldn't be the first time Thompson vaguely leaks classified cost information on the project, as he wrote in an article shortly after the contract award that the EMD bids were under a half of the 23 billion independant estimate.flateric said:OK, guy is comparing prices for bomber and widebody airliner saying that first must somehow correspond to the other.
That's enough for me to judge a level of competence.
sferrin said:Triton said:We'll see whether Northrop Grumman knowingly underbid the LRS-B contract or not. I presume that Northrop Grumman would have filed a GAO protest if the Boeing-Lockheed Martin team had won the contract. It seems fashionable to hate Boeing, while Lockheed Martin and Northrop Grumman aren't any better. Moving production to lowest cost regions and breaking unions is capitalism. We shouldn't hate Boeing and Lockheed Martin for filing the GAO protest. It's just business.
If they felt they had a real case that's one thing. A "hail Mary", at the taxpayer's expense, in hopes a miracle might happen deserves all the scorn it's getting.
Investment analysts at Jefferies believe Spirit AeroSystems Inc. in Wichita may have won work on one of the largest aerospace defense contracts on the horizon.
According to the website 24/7 Wall Street, Jefferies has listed Spirit (NYSE: SPR) as a top stock to buy, with the firm saying it is “reasonably confident” that the company
has won a contract on the Long Range Strike-Bomber that Northrop Grumman Corp. will be building for the U.S. Air Force. Spirit AeroSystems Inc. in Wichita may have won work
on the new bomber being built by Northrop Grumman for the U.S. Air Force.
Northrop recently won that contract, which could be worth more $100 billion over the life of the program, by beating out partners Lockheed Martin Corp. and the Boeing Co.
A spokesperson for Spirit declined to comment on the possible bomber contract.
However, in an 8-K filing last week with the U.S. Securities and Exchange Commission, the company disclosed that it is lowering its free cash flow guidance for 2016 from between
$350 million and $400 million to between $325 million and $375 million to “reflect investments anticipated in connection with a recently awarded significant restricted contract.”
That filing came the day after the GAO denied the award protest, thereby clearing the way for Northrop to move forward on the program.
It’s that contract that Spirit references that Jefferies believes to be on the LRS-B program, and one that would be in keeping with Spirit CEO Larry Lawson’s previously stated belief
that there were more opportunities in the defense market for the company.
Jefferies said it believes the contract could add between $350 million to $600 million in revenue at Spirit in five years.
As a result, it has a higher price target — $66 — on Spirit than the consensus of $56.79.
Northrop, which will eventually build up to 100 of the new bombers as part of the contract, said last year that it was hoping add to the amount of work it did with Wichita suppliers.
By Andrea Shalal
Feb 25 Boeing Co has told senior U.S. Air Force leaders that it will not take legal action challenging an $80 billion long-range bomber contract awarded to Northrop Grumman Corp, two sources familiar with the decision said on Thursday.
The decision came hours after Boeing, the Pentagon's No. 2 supplier, replaced Chris Chadwick as the head of its defense division with Leanne Caret, head of the defense division's services and logistics business.
It followed a pledge by Senate Armed Services Committee Chairman John McCain to block the Air Force's use of a cost-plus type of contract, which holds the government responsible for cost overruns, for the Northrop bomber program.
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Boeing spokesman Todd Blecher declined to confirm the news.
"If we choose not to pursue our protest further in the interest of our Air Force customer and the war fighter, or otherwise, we will inform the Air Force and other stakeholders of the decision first. We have no new information to share at this point," he said.
Northrop and the Air Force declined to comment.
Air Force Secretary Deborah James was expected to reveal the name of the new bomber at an industry conference in Orlando on Friday, according to a source familiar with the matter.
Loren Thompson, a defense consultant with close ties to Boeing, said Boeing officials expected the bomber program to face tough scrutiny by Congress given reports that Northrop had submitted a lowball bid for the work.
"Just because they won't go to court doesn't mean they're giving up," he said of Boeing's thinking on the bomber contract. "They believe that as time goes by this program will look less and less executable under the terms that were agreed to."
McCain told reporters he would block authorization of the new long-range strike bomber program in its current form, arguing that cost-plus deals inevitably lead to cost overruns.
The Air Force said it understood McCain's concerns and looked forward to briefing him on the program in coming weeks.
It said only the engineering and development phase of the program, valued at $21.4 billion, is structured as a cost-plus contract with incentive fees. Production of the first five sets of new bombers, usually the most expensive planes in a new class of aircraft, would be structured with a firm, fixed-price.
The Air Force has not disclosed the full projected cost of the program, although it has said that it expects to pay $511 million per plane in 2010 dollars. (Reporting by Andrea Shalal; Editing by Richard Chang and David Gregorio)
sferrin said:Not real. Wrong name too.
sferrin said:Not real. Wrong name too.
dark sidius said:What is that 10 years awaiting for another b2 ?? where is the craft on the Northrop tease video ??
To start with, aircraft in the commercial has a cranked kite planform.TomS said:I don't see anything here that doesn't fit under that sheet in the commercial.