Tanker Contract Up In The Air

Tanker Contract Up In The Air (Added: July 09, 2008)

Defense Secretary Robert Gates said the Pentagon would conduct a limited rebid for the $40 billion tanker contract that looks only at issues where the GAO found problems in the initial bidding. (more)

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Defense Secretary Robert Gates said the Pentagon would conduct a limited rebid for the $40 billion tanker contract that looks only at issues where the GAO found problems in the initial bidding.

By: Jamie Burch | WKRG
Published: July 09, 2008

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WASHINGTON (Reuters) - Defense Secretary Robert Gates said on Wednesday he planned to reopen a $40 billion competition between Boeing Co and a team of Northrop Grumman and EADS to build new aerial refueling tankers.

Gates told reporters the selection process would now be overseen by John Young, the Pentagon's chief weapons buyer, not the Air Force.

The limited rebid will only look at the seven issues where the Government Accountability Office found problems in the initial bidding.

Gates hopes a decision could be reached by the end of the year.

Click here to watch the entire Pentagon news conference.