Here is how it works on government contracts.
First, this evaluation has been going on for a significant time for a government contractor to release such news.
Second, the "change order" (CO) for this class of change requires customer approval. Ultra will submit a CO proposal to their customer. This is where the fun begins. Ultra has existing contracts to suppliers. In order to change suppliers, Ultra must cancel existing contracts while establishing a contract for BI. The rub is that cancellation of a contract obligates Ultra to cancellation charges which further increases the cost of the BI product.
Ultra will propose that, if the customer wants the added performance, that the customer pay all the allowed costs of the contract change. Also, the proposed CO may have a change in delivery date if current manufacturing has to be modified to use the BI material. SOC usually gets what they want and usually gets the best in class to meet their requirements.
These types of changes can go through the process quickly if the customer wants the product. A lot depends on what the validation data indicated. We are not going to see that data. The proof of performance will be a contract award to BI. It is possible to get a change in for the next delivery but not likely due to Ultra already having material in process, unless the customer is willing to slip the delivery date (we may not know about this either). My more confident opinion is that BI will supply material for the next delivery.
Keep in mind that this is a lot bigger than just SOC. Secret Service contracts are not made public. And, probably the best part is that whatever the USG determines to be the best protection, public persons and companies will follow suit.
I can only hope that BI employes the services of a retired Raytheon contracts person who knows how to make this happen without leaving a lot of money on the table or making a commitment to a contract they cannot make money on.
Flatcat
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