Exclusive: U.S. Air Force to reevaluate bids in protested radar deal - sources

By Andrea Shalal WASHINGTON (Reuters) - The U.S. Air Force has agreed to reevaluate proposals received in a competition for a long-range radar system initially won by Raytheon Co , after two losing bidders filed protests, two sources familiar with the matter said on Tuesday. The Air Force's action is expected to resolve the two separate protests, which were filed by Lockheed Martin Corp. and Northrop Grumman Corp days after the contract was first awarded to Raytheon in October, according to the sources, who were not authorized to speak publicly. The decision followed a series of hearings held by the Government Accountability Office, the congressional agency that evaluates federal contract disputes. "The Air Force is taking corrective action," said one of the sources. The protesting companies were now evaluating the proposed actions to determine whether they would render their protests moot, the source added. Attorneys for the companies involved declined comment, as did spokesmen for the Air Force and the GAO. It was unclear how long the Air Force reevaluation of the bids would take, but one source said it could include a more technical assessment of proposals submitted by the companies. Raytheon in October beat out Northrop and Lockheed to develop a replacement for the Air Force's current TPS-75 radar, which has been in service since the late 1960s. The new radar will serve as the Air Force's primary long-range, ground-based sensors for detecting and tracking aircraft and missiles. The value of the Three Dimensional Expeditionary Long-Range Radar (3DELRR) contract is limited now but could eventually rise to about $1 billion, given the Air Force's plan to buy 30 of the new systems in coming years. Orders from foreign militaries for as many as 100 of the new systems could further expand the value of the contract, one of few new large acquisition programs awarded by the Air Force. (Reporting by Andrea Shalal; Editing by Sandra Maler)