Archive for the ‘Boeing’ Category

Boeing's Delta IV

Well, this will be interesting. Stand by for some alphabet soup.

First, the Defense Contract Audit Agency (DCAA) says Boeing needs to reimburse $72 million it has already received.

Next, DCAA says the Defense Contract Management Agency (DCMA, not to be confused with DCAA) should notify the joint Boeing-Lockheed Martin venture called the United Launch Alliance (ULA) that there are another $199 million in unallowable costs (that are pending reimbursement) that the government won’t pay.  Got all that?

The work in question was done was for the Air Force as far back as 1998.

Given the complexity of monster-sized programs like EELV, the two main contractors, the joint venture, the who-knows-how-many subs, and the multi-year time frame, unpacking this all had to be–to say the least–a challenging audit to close on.

DCMA is now reviewing DCAA’s audit recommendation and a final decision is planned for November.

NASA’s prior work to return Americans to the moon isn’t dead yet, but we may want to get a priest.

The big remaining issue will be about funding for contract termination, which I predict will be paid for by NASA.  And that’s not a very bold prediction.

Termination costs are why no contractor in their right mind will take on the risk of committing their own funding–for projects of this magnitude–to government work.  Too risky.

However, Lockheed, Alliant, and Boeing may want to leave the lights on for the SpaceX guys.

Or they may just want to give SpaceX an offer they can’t refuse, like buying them out.

Round one (aka tanker lease): epic fail based on USAF/Boeing procurement integrity problems.

Round two: Boeing competes against Northrup Grumman/EADS team. Boeing loses.  Boeing protests.  Protest upheld.

Round three: the procurement process, to say nothing of future air-refueling capabilities, hangs in the balance.

After all this, Boeing is almost certain to win the $50 billion deal.