🚀 AI-picked stocks soar in May. PRFT is +55%—in just 16 days! Don’t miss June’s top picks.Unlock full list

Boeing says reviewing U.S. briefing on bomber contract loss

Published 10/30/2015, 04:26 PM
Updated 10/30/2015, 04:30 PM
© Reuters. Visitors look at models of Boeing aircrafts at the Aviation Expo China, in Beijing, China
BA
-
NOC
-
LMT
-

WASHINGTON (Reuters) - Boeing Co (N:BA) said it was briefed on Friday by the U.S. Air Force about its selection of Northrop Grumman Corp (N:NOC) to build a next-generation long-range strike bomber and will decide whether to protest the contract award "in the coming days."

Boeing, which had teamed up with Lockheed Martin Corp (N:LMT), told its staff in a memo on Tuesday that it would "rigorously deliberate" whether to fight the tender outcome, with a decision likely within two weeks.

Boeing spokesman Todd Blecher said the Air Force briefing with the Boeing-Lockheed team had been completed, but declined to provide any details on what the companies were told, or who participated.

"We will spend the coming days reviewing what we were told about how the competition was scored. After that, we'll be in position to decide on our next steps," he said.

The U.S. Air Force declined comment.

Under federal law, companies have 10 days after an agency debrief to file with the U.S. Government Accountability Office, an arm of Congress that rules on federal contract protests. The GAO then has 100 days to evaluate the case.

The Air Force on Tuesday selected Northrop, maker of the stealthy B-2 bomber, to develop and build the new bomber, a deal analysts value at up to $80 billion.

Boeing and Lockheed immediately said they wanted answers on how the competition was scored with regard to price and risk.

© Reuters. Visitors look at models of Boeing aircrafts at the Aviation Expo China, in Beijing, China

Air Force officials have declined to comment publicly about how the two bids compared. They said only that Northrop's bomber represented the "best value for the nation" and would cost $511 million per plane, on average, in 2010 dollars, well below the program's cost cap of $550 million per plane.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.