Embraer deal set aside by U.S. Air Force


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  • | 12:00 p.m. February 29, 2012
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by David Chapman, Staff Writer

The U.S. Air Force has set aside the $355 million contract that would have allowed Embraer to build the A-29 Super Tucano warplane and create 50 local jobs.

The decision re-opens contract bidding for the light attack aircraft.

Sierra Nevada Corp. was awarded the U.S. Department of Defense contract in December after its main competitor, Wichita, Kan.-based Hawker Beechcraft, was excluded in a “pre-award exclusion.”

Hawker Beechcraft filed suit against the U.S. government Dec. 27 seeking answers for the exclusion and contesting the decision.

“While we pursue perfection, we sometimes fall short, and when we do we will take corrective action,” said Air Force Secretary Michael Donley in a statement.

“Since the acquisition is still in litigation, I can only say that Air Force Senior Acquisition Executive David Van Buren is not satisfied with the quality of the documentation supporting the award decision.”

The Air Force put a “stop-work” order to Sierra Nevada on Jan. 4.

At the time, JAXUSA Partnership President Jerry Mallot said he was not worried about the award because Embraer “had the best product.”

Hawker Beechcraft officials disagreed.

Since the “stop-work” order, the companies have publicly sparred, with Sierra Nevada issuing a “point-by-point rebuttal of misinformation being spread by the disqualified contender” Feb. 2.

In a statement following the decision to set aside the contract, Taco Gilbert, Sierra Nevada vice president of business development, said the company is disappointed by the decision.

“We offered the U.S. Air Force a fully proven and cost-effective Light Air Support solution,” he said. “We know that our submission fully met the requirements of the U.S. Air Force Request for Proposal and that Sierra Nevada Corporation fully complied with the RFP process.”

Gilbert said the company and team “remain ready to get to work on this important contract.”

Hawker Beechcraft issued a statement Tuesday commending the Air Force on its decision to reinstate the company “to the competitive range under the procurement” for the light air support contract.

“We look forward to competing for this contract as this important initiative moves forward,” said Bill Boisture, Hawker Beechcraft chairman in the release.

Embraer was planning to build the planes at a 40,000-square-foot hangar at Jacksonville International Airport.

City Council approved incentives for the project, which promised an average salary of $49,500, plus benefits. Council approved a Qualified Target Industry Tax Refund of $150,000 for Embraer contingent upon the contract.

Under the QTI, the City would refund $30,000 and the state would be responsible for $120,000.

Embraer was expected to generate an annual payroll of about $2.5 million and invest $1.8 million in assembly equipment, according to Joe Whitaker, Jacksonville Economic Development Commission targeted industries coordinator, in a presentation to the Council Finance Committee Mayor Alvin Brown said this morning that he was disappointed and that he, U.S. Rep. Ander Crenshaw and U.S. Sen. Bill Nelson will be briefed this week about the decision.

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