Feds put off Northrop Grumman, Boeing tanker decision
By James Bernstein |
[email protected]
11:05 AM EDT, September 10, 2008
Northrop Grumman Corp. and Boeing Co., the two aerospace giants vying for the right to build new aerial refueling tankers for the Air Force under a $35 billion contract, will have to wait until a new administration is in place in Washington, D.C. for a resolution of the competition, Defense Secretary Robert Gates said Wednesday.
Gates said it would be unfair for the current Bush administration, which has only a few months left in office, to make a decision on which one of the two companies should build what is now called the KC-X tanker. The Pentagon wants to build 179 new aerial refueling planes to replace an aging fleet.
The competition, initially won by Northrop Grumman, has been mired in controversy. After Northrop Grumman won it earlier this year, Boeing protested, and the protest was upheld by the Government Accountability Office. In July, Gates said the contract would be re-bid and that the Pentagon, not the Air Force, would take charge of the competition. The Air Force came under severe criticism by the GAO for its handling of the competition.
But in a statement issued by the Pentagon Wednesday, Gates said the Defense Department is "terminating" the competition and handing the matter over to the next administration.
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