The Air Force's decision late last month to award the long-contested, $35 billion aerial refueling tanker program to Boeing ended a competition that had been fraught with controversy. But analysts say the decision may have sent another message to the contracting community: The government isn't necessarily seeking the most capable or "best value" equipment, but rather good-enough equipment with a lower price tag/.../
The focus on cost isn't surprising, considering the tightened budgetary environment. Andrew F. Krepinevich Jr., president of the Center for Strategic and Budgetary Assessments, said price will loom increasingly large as the defense budget shrinks.
What Gates is saying is that “we've emphasized for so long high performance because we really haven't had to worry about cost,” Krepinevich said. “Well, that's changed. Cost really matters now/.../”
Barry Watts, a senior fellow at the Center for Strategic and Budgetary Assessments, said he wouldn't assume other contracts will be evaluated the same way, citing the tanker program's “unique and ugly history.”