Pentagon delays $35B Air Force tanker decision

WASHINGTON (AP) -- The Defense Department will wait until the next administration to award a disputed $35 billion contract to build a new fleet of aerial refueling tankers.

Rep. Norm Dicks, D-Wash., says the Pentagon has canceled the latest round of bidding between Boeing Co. and Northrop Grumman Corp. for the 179 planes, and now plans to hold a new competition next year.

Northrop won the contract earlier this year, but the competition was reopened after the Government Accountability Office found fault with the decision.

(Copyright 2008 by The Associated Press. All Rights Reserved.)


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