Although the document praises Sierra’s “strong management approach to ensure the technical work and schedule are accomplished,” it cautions that the company’s Dream Chaser had “the longest schedule for completing certification.” The letter also states that “it also has the most work to accomplish which is likely to further extend its schedule beyond 2017, and is most likely to reach certification and begin service missions later than the other ‘Offerors’.”
Discussing costs, Gerstenmaier says that “although SNC’s price is lower than Boeing’s price, its technical and management approaches and its past performance are not as high and I see considerably more schedule risk with its proposal. Both SNC and SpaceX had high past performance, and very good technical and management approaches, but SNC’s price is significantly higher than SpaceX’s price.”
Touching on why Boeing received a $4.2 billion contract, versus $2.6 billion for SpaceX, he adds “I consider Boeing’s superior proposal, with regard to both its technical and management approach and its past performance, to be worth the additional price in comparison to the SNC proposal.”
Given how subjective such evaluation processes are, it’s not an implausible story.