GAO denies appeal by Westinghouse on radar contract

February 05, 1993|By Ted Shelsby | Ted Shelsby,Staff Writer

There was more bad news yesterday for workers at the Westinghouse Electronic Systems Group in Linthicum.

The General Accounting Office has denied a challenge that Westinghouse filed against the Army's award of a contract to Lexington, Mass.-based Raytheon Corp. The contract, awarded in September, was for the production of a ground-based radar system to be used with a missile defense system similar to the Patriot.

In its filing, Westinghouse argued that its bid for the $614.7 million contract -- the first phase of a pact that could have led to billions of dollars in new business over the next decade -- was 40 percent lower than Raytheon's.

The Army has not denied that the system it accepted from Raytheon would cost more than the one offered by Westinghouse, said C. Douglas McArthur, an attorney at the GAO. "But they think they are getting a better system. Its performance will be better."

Mr. McArthur said the GAO considered the pricing differences of the competing bids in its appeal even though Westinghouse was late in filing its objection to Raytheon's price.

The GAO's action was another setback for the Westinghouse operations in Maryland. The company was counting on the radar pact, one of the largest new contracts to be awarded by the Pentagon during this period of declining defense spending, to help stabilize its work force.

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