Pentagon Shoots Down Beechcraft Protest

Watch stocks you care about

The single, easiest way to keep track of all the stocks that matter...

Your own personalized stock watchlist!

It's a 100% FREE Motley Fool service...

Click Here Now

Well, that was quick. Precisely one week after Goldman Sachs (NYSE: GS  ) subsidiary Beechcraft announced that it would protest a Pentagon award of $950 million to Embraer (NYSE: ERJ  ) and Sierra Nevada to build a squadron of 20 Super Tucano turboprop fighter planes for the Afghan Air Force, the Pentagon has put its foot down. It's giving the contract to SN-E, period.

No more dawdling, the Pentagon said in effect. Allied forces in Afghanistan have been waiting for these planes since December 2011 (when Sierra Nevada and Embraer were originally awarded the contract). Beechcraft had its bite at the apple once already, when it protested the award last year, had it thrown out, and forced a rebid of the contract -- and once is enough, the Pentagon said.

Citing "unusual and compelling circumstances" -- a 16-month delay in delivery of the planes, and stopwatch rapidly ticking down to the date when U.S. forces depart the country and Afghanistan must fend for itself -- the Air Force confirmed Friday that it is "overriding" demands to re-review its contract award.

Beechcraft, needless to say, is not pleased with the decision, calling it "very misguided" and criticizing "the Air Force's decision to bypass the normal GAO review process," and threatening to "review its options." It's hard to see what options remain to it, though, now that the Pentagon has said its decision is final.

Read/Post Comments (2) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On March 16, 2013, at 3:56 PM, jewnomics101 wrote:

    When you all shot down Beechcraft were you a coward and used the UAV drone from a million miles away or did you go toe2toe with your bare hands?.

  • Report this Comment On March 16, 2013, at 7:07 PM, dunce1239 wrote:

    Beechcraft is headquartered in Wichita which is where the Koch brothers also have financial interests that would benefit from a local contract and they are not on obamas list of crony capitalists while Brazil has a socialist government.

Add your comment.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2316797, ~/Articles/ArticleHandler.aspx, 9/28/2016 1:36:36 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 4 hours ago Sponsored by:
DOW 18,228.30 133.47 0.74%
S&P 500 2,159.93 13.83 0.64%
NASD 5,305.71 48.22 0.92%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/27/2016 4:03 PM
ERJ $17.77 Down -0.18 -1.00%
Embraer-Empresa Br… CAPS Rating: ***
GS $162.89 Up +1.41 +0.87%
Goldman Sachs CAPS Rating: ***