GAO backs Boeing on tanker bid complaint

WASHINGTON, June 18 (UPI) -- The U.S. Government Accountability Office Wednesday backed Boeing Co.'s complaint that the bidding process for a $40 billion military contract was flawed.

The bidding for refurbishing planes as Air Force in-flight refueling tankers included "significant errors that could have affected the outcome of what was a close competition," GAO said in a release.

GAO attorney Michael Golden said the office "denied a number of Boeing's challenges."

But, the GAO recommended the Air Force "obtain revised proposals, re-evaluate the revised proposals" to make a new decision consistent with GAO recommendations.

The GAO said the Air Force used "as a key discriminator" Northrop's proposal to exceed specification for the tanker plans, although its evaluation criteria for the contract specified it not do so.

The Air Force also informed Boeing it had met a key performance objective before bids were complete, then ruled against the company with a complaint the objective was only "partially met," the GAO ruled.

The decision is seen as huge a victory for Chicago-headquartered Boeing and a setback for the Northrop-EADS group. The original $40 billion contract could grow to a lifetime value of more than $100 billion, aerospace industry analysts said.