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Pentagon to decide on tanker contract rebid



By AP
08 July 2008 @ 05:01 pm EST

WASHINGTON - The Pentagon is expected to announce Wednesday whether the Air Force will rebid a $35 billion contract to build new refueling tankers.

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Several lawmakers have been told the agency will decide how to move forward after a government report found major flaws in the decision to award the lucrative contract to Northrop Grumman Corp. and its European partner over Boeing Co.

Last month, a Government Accountability Office report said Boeing might have won the contract if the Air Force had not made mistakes in evaluating the competing bids. The GAO recommended the service hold a new competition.

Defense Secretary Robert Gates says he takes the GAO report "very seriously."

Gates is overseeing the decision on how the Air Force should respond.

Copyright 2008 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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