Lockheed Martin and Boeing, the world’s two largest defense contractors, submitted a joint proposal to develop the Long Range Strike-Bomber (LRS-B) together. The two companies lodged a complaint with the Government Accountability Office (GAO), citing concerns over the cost evaluation portion in the bidding process.
The LSR-B will replace the aging fleet of B-2 stealth bombers built by Northrop Grumman. The high costs of developing the LSR-B proposals meant the loser was likely to contest the decision whichever way it went.
It’s is likely to be the only major combat aircraft project developed by the Pentagon for a decade or more, making competition for the contract even steeper. U.S. government budget control measures have ramped up competition between defense contractors, which has caused a spike in complaints filed over contract awards at the GAO.
A joint statement from Boeing and Lockheed Martin called the LRS-B award process fundamentally flawed, saying that the Air Force’s cost evaluation didn’t recognize the two companies’ pledge to break the cycle of skyrocketing defense acquisition costs.
The Government Accountability Office now has 100 days to process the complaint and decide whether there are grounds to reopen to bidding process and reevaluate the contract award.
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