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US reopens $35bn air tanker deal | US reopens $35bn air tanker deal |
(20 minutes later) | |
The US government has reopened a $35bn (£17bn) contract to supply the US Air Force with refuelling tankers, which had been given to European group EADS. | |
It said mistakes had been made when the original bids were evaluated. | It said mistakes had been made when the original bids were evaluated. |
US plane maker Boeing will get the opportunity to rebid after losing out to the European aerospace consortium. | |
The Air Force's decision to award the valuable contract to EADS and its partner Northrop Grumman has been controversial in the United States. | The Air Force's decision to award the valuable contract to EADS and its partner Northrop Grumman has been controversial in the United States. |
Boeing had emphasised its home-grown credentials during the competition for the contract, urging the Air Force to "Buy American". | |
When the decision went against it, the company and a number of US senators campaigned to get the tender process re-opened. | |
'Best tanker' | |
The deal - one of the biggest in the Air Force's history - is the first of three contracts to supply up to 600 new refuelling tankers. The 300-year deal could be worth up to $100bn. | |
Northrup Grumman, who was awarded the contract along with EADS in February, said the "best tanker" had already been picked. | |
"We are reviewing the decision to ensure the re-competition will provide both companies a fair opportunity to present the strengths of their proposals," the company said in a statement. | |
The Pentagon is expected to decide by the end of the year who will be awarded the contract. It has taken over responsibility for the process from the Air Force. |