Lockheed Martin has dropped its complaint to the US General Accounting Office (GAO) over the US Air Force's selection of Raytheon to produce $64 million worth of Paveway II laser-guided bomb kits for the US Navy.

In March, Lockheed Martin asked the GAO to investigate the contract award to Raytheon. The company believed that it had demonstrated it could produce Paveway kits in competition with Raytheon (Flight International, 27 March-2 April).

According to the USAF, Lockheed Martin's complaint alleged that the USAF improperly failed to qualify the defence firm to bid for the work. The USAF maintains, however, that Lockheed Martin did not complete all bidding requirements.

The USAF says Lockheed Martin will "continue its efforts to become qualified to produce Paveway II LGB kits".

Raytheon has been the sole-producer of Paveway kits since the late 1960s, but under congressional pressure the US Navy last year opened the door for Lockheed to compete. The $64 million contract involves 4,000 kits.

Source: Flight International