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To: jazusamo
"I wonder how the Pentagon is going to deal with the fact a contract was signed with Northrop?"

Not to worry, the feds couldn't get a contract out in less than 18 months if the fate of the world depended on it.

There has been an announcement of selection, probably a letter of intent or interim funding vehicle (can't remember the term for 'not really the contract just yet, here's money'), and a memorandum of understanding (or agreement) that comes before the contract itself. Historically, memos of understanding require tons of review and are not enforceable. Historically, memos of agreement CAN be enforced once signed but I think that is dropping away these days.

In any event Lockheed/Airbus will probably be able to collect reasonable startup / termination costs that could be quite sizable due to the nature of this thing. It would be interesting to see how DOD factors in the costs already flushed away by the first exercise.

Negative note:
AF will go into this with hurt feelings in any event, more problematic if Boeing does get the selection - which I think is likely at this point since Airbus had to have been implicated in at least the breaking of communications taboos and was directly responsible for the changes to specification.

27 posted on 07/09/2008 2:07:36 PM PDT by norton
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To: norton

Thanks for the insight, norton.

I’ve been following this to some extent but am not familiar with defense appropriations or bidding procedures. The thing that stands out in my mind is the millions the DOD has put into this already and they’re having to start over again, it just seems there should be a better way.


30 posted on 07/09/2008 2:20:01 PM PDT by jazusamo (DefendOurMarines.org | DefendOurTroops.org)
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