Embraer's US Air Force Contract Temporarily Suspended

In yet another bizarre development in the ongoing saga of Beechcraft vs. Embraer, the US company filed a lawsuit resulting in a bid protest by the US Government Accountability Office. Full details are available in this article from Forbes.

The bid protest led to a temporary suspension of Embraer's contract with the US Air Force.

Among other charges, Beechcraft alleges that the Embraer contract would result in the loss of US jobs, even though the Embraer Super Tucanos are scheduled to be produced in Jacksonville, Florida, presumably by US citizens. 

Beechcraft also claims that the Embraer contract would cost "40% more – over $125 million more – for....less capable aircraft."

The story illustrates the complexities involved in big contracts like this. After the Embraer contract was announced, Brazilian officials let it be known that it could improve the chances that US-based Boeing would win a $4 billion contract with the Brazilian Air Force.  

Of course, that's small comfort to Beechcraft. Stay tuned.

Sources: Brazil Portal, Forbes