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THURSDAY, NOVEMBER 26, 2009
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Pentagon to Re-Open $35B Air Force Tanker Bid

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(Newser) – The Pentagon will re-open a $35 billion contract to build the Air Force's fleet of new refueling tankers and pick a new winner by the end of the year, congressional sources say. The Office of the Secretary of Defense—not the Air Force—will oversee the new competition between Boeing Co. and a team led by Northrop Grumman Corp.

The plan, which hands control to the Pentagon's top acquisition chief and sets up a dedicated source-selection committee, indicates that senior civilians at the Defense Department have lost confidence in the Air Force's ability to manage the contract. The Government Accountability Office said last month that Boeing might have won the contract had the service not made mistakes in evaluating the bids.

In this artist's depiction provided by Northrop Grumman Corp., a KC-45A refuels a B-2 stealth bomber. Congressional investigators Wednesday June 18, 2008 have upheld Boeing's protest of a $35 billion Air Force tanker contract awarded to Northrop Grumman Corp. and Airbus parent European Aeronautic Defence and Space Co., and recommended...
In this artist's depiction provided by Northrop Grumman Corp., a KC-45A refuels a B-2 stealth bomber. Congressional investigators Wednesday June 18, 2008 have upheld Boeing's protest of a $35 billion...   (AP Photo/Northrop Grumman Corp, FILE)
In this artist's depiction provided by Northrop Grumman Corp., a KC-45A refuels a B-2 stealth bomber.
In this artist's depiction provided by Northrop Grumman Corp., a KC-45A refuels a B-2 stealth bomber.   (AP Photo/Northrop Grumman Corp)
In this Feb. 29, 2008 file photo, from left, Boeing union workers David Henry of Puyallup, Wash., Sandy Hastings of Everett, Wash., James William and Charlie Grieser of Mukilteo, Wash., protest the U.S. Air Force's decision to award a fuel tanker contract to Airbus-Northrop Grumman at the Aerospace Machinists...
In this Feb. 29, 2008 file photo, from left, Boeing union workers David Henry of Puyallup, Wash., Sandy Hastings of Everett, Wash., James William and Charlie Grieser of Mukilteo, Wash., protest the U.S....   (AP Photo/Stephen Brashear, file)
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