GAO Decision on Tanker Contract

The Washington Post reports that GAO has upheld the protest of a $1.2 billion contract awarded to Boeing to maintain a fleet of Air Force refueling tankers:

The GAO last week sustained Pemco's protest over how cost and price were evaluated. Its decision said the "record does not reflect any Air Force analysis as to the realism of certain changes" in Boeing's final proposals "or the potential risk associated with those changes." Officials in the procurement division of the Air Force said they expect to respond to the GAO's findings soon.

The GAO did not rule on Pemco's allegations that a senior Air Force official [i.e., the late Charles D. Riechers] in the office that awarded the contract had a conflict of interest. ...

The GAO said it had been advised by the Air Force that "both local law enforcement and federal government investigative authorities are conducting an ongoing investigation into 'the root cause' of Mr. Riechers' death."

The agency's statement said that "it is our understanding that this investigation will encompass matters that may have a bearing on Pemco's allegations of bias." Because of the ongoing investigations, the GAO "does not express any opinion regarding Pemco's bias allegations."

Update: Government Executive magazine has more on the story.