significant schedule risk by suggesting that the FAA has given the plan its blessing. For
‘example, the Air Force provides that “both offerors were required to coordinate
preliminary FAA certification plans through the FAA Military Certification Office in
Wichita, KS; this included planned time lines. The MCO coordination responses
identified both certification plans as ‘viable approaches.” Second Supp. COSF, AR Tab
002 at 88. The Air Force also declares that “The FAA signature was not approval of the
plan (since that occurs when the application is filed after contract award) but represented
the FAA's opinion that the proposed certification approach was viable and complied with
certification requirements. ‘The FAA also served as advisors to the SSET to assist the
USAF in performing the analysis of the proposed approach and identifying both proposal
and schedule risk issues.” Initial COSF, AR Tab 002 at 103-04.
These post hoc rationalizations of the adequacy of NG/EADS? certification
approach exaggerate the significance of the FAA's role and further suggest that the Air
Force unreasonably evaluated NG/EADS? certification plan._As indicated in the formal
FAA transmittal to the Air Force dated March 26, 2007,
However, it further stat
I1-J-iii, Thus, the FAA merely deemed.
Moreover, with respect to the FAA's involvement in the evaluation process,
Ultimately, the Agency Report's description of the FAA’s participation in the
evaluation process suggests that the Air Force ignored the significant schedule risks
inherent in NG/EADS’ complex certification plan because it assumed that the FAA had
deemed that plan to meet the RFP requirements. However, this assumption was
completely incorrect. In the end, the Air Force's failure to account for the substantial
schedule and cost risks associated with NG/EADS’ proposal resulted in its untenable
conclusion that NG/EADS" proposal to achieve IOC in was less risky than
Boeing’s proposal to achieve IOC in FY15
4, The Agency Report Confirms That The Air Force’s Schedule Risk
Assessment Ignores Critical Risks That Should Have Generated
Adjustments To NG/EADS? Schedule.
Boci
g's Protest argued that the Air Force acted unreasonably in
and that the Air Force’s treatment of the two offerors with 1
schedule risk differed greatly. See, e.g., Second Supp. Protest, AR Tab 003(c) at 72.
93Boeing pointed out that both offerors’ schedules were initially regarded as overly
aggressive, as reflected in the early schedule risk assessments (SRAS). /d. While Boeing
‘was able to reduce the risk associated with its proposal through a significant schedule
were able to accomplish the same result
The Air Force response repeatedly emphasizes that Boeing was not forced to
change its schedule. See, e.g., Second Supp. COSF, AR Tab 002 at 108 (“[T]he Air
Force did not demand a change in Boeing’s schedule.” (emphasis in original); Initial
COSF, AR Tab 002 at 103 (“The Air Force never directed Boeing to change its
schedule.”). Instead, the Air Force argues, Boeing ‘elected’ to make schedule
adjustments. With these statements the Air Force ignores the reality of the situation. The
Air Force determined that Bocing’s initially proposed schedule was high risk, and Boeing
recognized that this risk had to be mitigated. The Air Force acknowledges this point,
noting that “[iJn the absence of any other acceptable mitigation plan, it was likely that the
Air Force would have carried the Milestone C weakness and concluded that the initial
schedule would have been high risk, perhaps even unacceptably high risk.” Initial
COSF, AR Tab 002 at 105. During the evaluation process, the Air Force made it clear to
Boeing that it would need to extend its schedule or accept the consequence of this
unacceptably high risk. See, e.g., Mid-term Briefing to Boeing Minutes, Aug. 17, 2007,
AR Tab 132 at 4 (“[I]t is Boeing's call as to the schedule they want to propose but they
should understand that it is high risk. .. if they stay with this approach without
substantive justification.”). While Boeing did not agree with the Air Force that its
initially proposed schedule presented a high risk, it understood the Air Force's concerns
and adjusted its proposal accordingly.
‘The Air Force’s treatment of NG/EADS was very different.
94Debrief to NG.
Mar. 10, 2008, AR Tab 208 at 153.
‘The Air Force defends the reasonableness of the evolution of NG/EADS’ SRA,
saying it “thoroughly addressed the schedule and performance risks may [sic] have been
ited by NG's proposal. The Air Force reasonably and thoroughly considered
MOL, AR Tab 001 at 163. As is discussed above in Section D.2.c, this assertion
PY
The Air Force attempts to support its decision to credit NG/EADS’ superficial
solutions to the schedule risks it did identify by noting “there were many ways for an
Offeror to mitigate schedule risks.” Second Supp. COSF, AR Tab 002 at 113. The Air
Force further states that Boeing’s SRA argument “is incorrectly based on the assumption
that risk could not be mitigated without changing the schedule, as Boeing had done.
However Northrop Grumman mitigated its risk in other ways.” Id. While the Air Force
is correct that there are many ways to mitigate schedule risk, the methods available
obviously are dependent on the particular risk being evaluated. Boeing does not argue
that the only mitigation for all schedule risks is changing schedule, it argues that the
particular risks present in NG/EADS' production plan were clearly not mitigated by the
methods they proposed. Thus, while Boeing was faced with an unacceptably high risk
rating if it did not extend its schedule,
Furthermore, while