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Bidding Starts Anew For $35B Air Force Tanker Deal

August 06, 2008

WASHINGTON (AP) - The Pentagon has opened a second round of bidding between Northrop Grumman Corp. and Boeing Co. for a disputed $35 billion Air Force contract.

A revised request for proposals has been issued for a new aerial refueling tanker meant to replace the Air Force's current fleet that date back to the 1950s.

The team of Northrop and Airbus parent European Aeronautic Defence and Space Co. won the original deal, but Boeing protested and won after a government review found "significant errors" in the Air Force's decision. Defense Secretary Robert Gates later said he would reopen bidding.

A new decision is expected by the end of the year.

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