Update: Pentagon to reopen $35 billion tanker bid
By DONNA BORAK
THE ASSOCIATED PRESS
WASHINGTON -- The Boeing Co. and Northrop Grumman Corp. will submit new offers for a disputed $35 billion Air Force tanker contract, and the Pentagon will pick a winner by the end of the year.
Defense Secretary Robert Gates said Wednesday that his office -- not the Air Force -- will oversee the competition between Boeing and the team of Northrop and Airbus parent European Aeronautic Defense and Space Co.
The plan, which hands control to the Pentagon acquisition chief John Young and sets up a dedicated source-selection committee, shows that senior civilians at the Defense Department have lost confidence in the Air Force's ability to manage the contract.
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