In a rare about face, the Government Accountability Office, Congress's auditing arm advised the Air Force to reopen competition for the $15 billion contract it awarded Boeing to build 141 rescue helicopters by 2019. While the ruling, which cited inconsistencies in the Air Force's evaluation process is non-binding, the Air Force has generally followed such requests in the past. If competition is reopened, it means a second chance for Boeing competitors Lockheed Martin and United Technologies-owned Sikorsky Helicopter. On hearing the news, Boeing said it believes its "helicopter offers the most capable and best-value aircraft for the Air Force's combat search and rescue operations."
Sources: Wall Street Journal, Business Week, Bloomberg
Commentary: How Boeing Defense Got Its Groove Back • Boeing Is Flying High • Boeing One-Ups Airbus Yet Again With FedEx Contract
Stocks/ETFs to watch: Boeing (NYSE:BA). Competitors: Lockheed Martin (NYSE:LMT), United Technologies Corp. (NYSE:UTX). ETFs: PowerShares Aerospace & Defense (NYSE:PPA), iShares Dow Jones US Aerospace & Defense (BATS:ITA)
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