At Tanker War Blog we were not able to obtain the full version of the comments, which we are told total over 400 pages, but one of our members on the Hill did get a very interesting section on Most Probably Life Cycle Cost(MPLLCC) calculations. These comments are heavily redacted, but from them it seems that the Air Force in its Agency Report has apparently now conceded that the KC-30's MPLCC is higher than Boeing's. This of course is the exact opposite of what the Air Force had briefed Boeing and publicly stated as a reason for selecting the KC-30. Page 103 of the comments has the following:
III. THE AGENCY REPORT CONFIRMS THAT THE AIR FORCE'S COST/PRICE EVALUATION WAS IMPROPER AND UNREASONABLE.On page 107 it seems that a small part of this error was even caused by someone in Air Force procurement not properly using an Excel spreadsheet:
With respect to the Cost/Price evaluation, as an initial matter, the Air Force now concedes that Boeing's most probable life cycle cost (MPLCC) is lower than NG/EADS'. See MOL, AR Tab 001 at 201-02. This renders even more troubling the SSA's initial public assertions that NGIEADS "offered great advantage to the Government in cost price." See Protest, AR Tab 003(a) at 94. The Air Force's concession, however, addresses only a miniscule fraction of the errors in the Cost/Price evaluation confirmed in the Agency Report.
In particular, in its Third Supplemental Protest, Boeing demonstrated that the Air Force underestimated [redacted]costs by $ [redacted] as a result of an erroneous spreadsheet cell reference.Now, the Air Force likely responded in the hearings that the error in their calculations was minor and irrelevant to the overall outcome. But, we expect this error will have considerable impact on the GAO in terms of their assessment of the thoroughness and credibility of the evaluation.
As more of the documents are released we will attempt to post them. Given that the Boeing documents are by their nature one-sided, we will generally refrain from commenting except when new information is brought to light, or we see items where the Air Force seems to concede it made errors.