WASHINGTON, June 16 The U.S. Air Force has
allowed Boeing Co (BA.N) to resume work on a $1.2 billion
contract for maintenance of KC-135 refueling aircraft after the
Government Accountability Office on Friday denied a second
protest filed by Alabama Aircraft Industries Inc AAII.O.
"As a result of the GAO's decision, the suspension on your
award of 10 Sep 2007 is hereby lifted," the Air Force told Boeing
in a document obtained by Reuters.
Alabama Aircraft, formerly known as Pemco Aviation, had won
its first protest against the contract award in December, but
filed a second protest in March after the Air Force again awarded
the contract to Boeing.
The GAO, a nonpartisan congressional agency that reviews
federal contract disputes, had already rejected part of the
second protest in May, but dismissed the remainder of the case on
Alabama Aviation President Ron Aramini announced the decision
late on Friday, saying his company would continue to press its
case until the Air Force has conducted a full and fair evaluation
"We believe that a proper evaluation would result in the
selection of AAII as the highest quality and lowest cost source
for the maintenance of the Air Force's KC-135 fleet," he said.
(Reporting by Andrea Shalal-Esa; Editing by Derek Caney)