US calls off tanker contest

The US Department of Defense has cancelled a controversial $35 billion bid competition for a fleet of new air refueling tankers because the current administration no longer has enough time to complete it in a ÔÇ£fair and objective" way.  ┬á The contract was initially awarded in February to Northrop Grumman and its European partner EADS, parent company of Airbus, but a successful appeal by Boeing to the Government Accountability Office led to the Pentagon deciding to launch a fresh contest.┬á┬á ┬á The GAO investigation found ÔÇ£significant errorsÔÇØ in the original bid process, but there was also considerable political opposition to the idea of awarding a major defense contract to a consortium involving an overseas supplier.┬á┬á Defense Secretary Robert Gates now says the outgoing administration no longer has the time to complete a competition "viewed as fair and objective". ┬á┬á Describing the atmosphere surrounding the competition as "highly charged," Gates said the final decision would now have to be made by the next US administration, which will take office in the New Year. ┬á┬á "The resulting 'cooling off' period will allow the next administration to review objectively the military requirements and craft a new acquisition strategy," he said. ┬á┬á The initial $35 billion competition is for 179 aircraft, but the value of the deal could rise to around $100 billion over the next 30 years.   ┬á┬á*┬á┬á┬á┬á┬á┬á┬á┬á┬á *┬á┬á┬á┬á┬á┬á┬á┬á┬á *┬á┬á