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thedrifter
11-12-08, 06:55 AM
Article published Nov 12, 2008
More protests over award
Government's selections for new Humvee challenged.
DONNA BORAK Associated Press Writer

WASHINGTON -- Boeing Co. and Textron Inc. are the latest partners to challenge the government's selection of three other teams to build a lightweight tactical vehicle to replace the once mighty Humvee, company and Marines Corps officials said Tuesday.

The Boeing-Textron team filed a protest late Monday with the Government Accountability Office, which investigates how taxpayer dollars are spent. The companies claim there were "unintended discrepancies" in how the government rated its bid in three key areas -- systems maturity, logistics and costs -- and that their proposal merited a higher score.

It is the second such protest of awards made less than two weeks ago for the Joint Light Tactical Vehicle program, which could ultimately be worth $20 billion or more. The protests force the decision on the Obama administration, since the GAO has 100 days to evaluate their merits.

While most protests are denied, the GAO has found fault with awards in other large competitions. The agency earlier this year granted Boeing's protest of a $35 billion Air Force tanker plane award to Northrop Grumman Corp., a decision that also awaits the Obama administration.

South Bend-based AM General, manufacturer of the Humvee, is part of the General Dynamics Land Systems team that is one of the three finalists.Northrop and its teammate Oshkosh Truck Corp. protested the tactical vehicle award last week, calling for a review of government's evaluation of the bids. Los Angeles-based Northrop argues the military made unannounced changes to the competition, was inconsistent in how it evaluated the programs, and that its version of the vehicle was cheaper.

The Army on Oct. 29 awarded the tactical vehicle contracts to General Dynamics Corp. and Humvee maker AM General; Lockheed Martin Corp. and Armor Holdings; and BAE Systems and Navistar International Corp. Each team received deals worth between $35.9 million and $45 million to begin the second phase of the program.

Among the other teams not selected were Force Protection Inc. and DRS Technologies Inc., and Raytheon Co. and Blackwater USA. Representatives from the team leaders, DRS and Raytheon, did not immediately return calls for comment Tuesday afternoon.

The Army and Marine Corps want tactical vehicles that can withstand roadside bombs and explosives, but are more agile on mountainous terrain and narrow roads than existing mine-resistant, ambush-protected vehicles being used in Iraq and Afghanistan.The vehicles will be tested for the next 27 months before production awards are made. The Pentagon will then pick two contractors to go forward. It's unclear whether the government will make a final award to a single company or use multiple vendors.

Each team is being asked to build a family that will include an infantry vehicle, a general purpose vehicle and a utility vehicle to support various Army and Marine Corps missions.

The services are expected to order 65,000 vehicles, which will not enter initial production until 2013. Each vehicle is estimated to cost $400,000, according to Merrill Lynch analyst Ronald Epstein.

Ellie