U.S. Aerospace, Inc (USAE)

[Resectorman]

USAE Don't anybody get their Speedos in bunch over the GAO denying USAE's protest for the KC-Tanker contract bid.

USAE has already stated in writing that they will appeal any denial to Federal Court. I expect the GAO expedited their review of USAE's Protest to allow USAE to take their shot at getting a Federal Injunction to preclude the Air Force from having to do a do-over after awarding the contract to EDAS or Boeing in November. To get a Fed Court injunction, all USAE has to do is convince a Federal Judge that USAE had a good chance of prevailing in their Federal Appeal. The GAO would rather know up front if the Fed Court might look favorably on USAE's appeal before awarding the contract to on of the other bidders. The Air Force does not want to see USAE win their appeal after another Contractor starts work on the tanker. This would leave the Air Force faced with sever untenable situations. 1) They might have to tell the Contractor who won the contract to stop work or pay USAE extraordinary damages for monies USAE lost by losing the contract. 2) The Air Force would have to still compensate the first Contractor. 3) Boeing, EADS and USAE may file individual suits again the Air Force damages. 4) At a minimum, the Air Force would have to restart the entire bidding process, which would further delay them from filling their requirement for a new tanker.