LOCKHEED MARTIN RIVALS CHALLENGE NO-BID CONTRACT FROM FAA
Backtracking on earlier proposal to give Lockheed Martin no- bid contract to overhaul U.S. air traffic control computer system using GPS technology (CD Feb 2 p2), FAA said it would consider bids from other companies. Agency spokesman said that so far, Raytheon was only other company to express interest. Raytheon has until March 21 to submit formal bid, FAA said. Its officials weren’t available to comment. Industry observers said it was unusual for federal govt. to award contract without competitive bid process. FAA official said contract was worth several hundred millions of dollars. Transportation Secy. Norman Mineta and Deputy. Secy-designate Michael Jackson are former Lockheed Martin executives.
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Questions about contract came after industry rivals charged politics may have been involved in decision to grant no-bid contract to Lockheed Martin. Lockheed Martin donated $2.4 million to federal candidates and political parties in 2000 campaign, including $200,000 to President Bush’s Inaugural committee. It was top figure among defense contractors, but Mineta has agreed to recuse himself from decisions that affect Lockheed Martin. FAA official said agency started considering Lockheed long before Mineta was nominated for Transportation Secy. He said FAA was considering bypassing usual procedure because of complexity of computer world and Lockheed’s advanced GPS technology. Lockheed currently has contract to maintain hardware for air traffic control system.
FAA official told us agency would wait to see whether Raytheon submitted bid before making next move. “We would look at capabilities of Raytheon and Lockheed and then go forward with a decision on whether or not to make it a competitive bid.” Final decision will be made by FAA Administrator Jane Garvey with input from internal agency board overseeing air traffic management. Using no-bid process was “determination based upon business sense,” FAA official said: “The least risk and most likely success.” Agency official said it wouldn’t change fundamental basis of how federal contracts would be awarded in future. “Things will be done on case-by-case” basis. FAA is under heavy pressure to meet 2008 deadline to modernize antiquated air traffic control system. -Bruce Branch