Thursday, July 10, 2008

U.S. plans expedited rerun of aerial tanker contest

Defense Secretary Robert Gates plans an "expedited recompetition" for $35 billion worth of new aerial refueling tankers to be overseen by the Pentagon's chief weapons buyer, according to two congressional aides and a third source briefed on the plan.

Defense Undersecretary John Young would become the new "source selection authority" for the program, instead of the Air Force, said the source, who asked not to be named.

The Air Force in February awarded the contract to Northrop Grumman Corp and EADS, prompting an immediate protest by losing bidder Boeing Co, and vows of congressional intervention by its supporters in Congress.

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