Boeing's $323M intell system stalled by protests

Military agrees to reassess issues contested by losing bidders

Alleged missteps in the selection of Boeing Co. as prime contractor for a new intelligence-gathering aircraft system bound for Afghanistan have relegated the project to a “no-fly zone” until the Army can redress the issues, Aviation Week reported today.

According to the publication, the $323 million Enhanced Medium-Altitude Reconnaissance and Surveillance System stalled when the three losing bidders -- L-3 Communications Inc., Lockheed Martin/Sierra Nevada and Northrop Grumman Corp. -- filed a protest with the Government Accountability Office in December 2010 and the Army promptly ordered a stop-work order, as in customary.

The first new aircraft systems to be installed in Hawker Beechcraft King Air aircraft were due to go into service in the summer of 2012.

Boeing Co., of Chicago, ranks No. 3 on Washington Technology’s 2010 Top 100 list of the largest federal government contractors.

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