Business

<< Previous   of   Next >>   ADVERTISEMENT   CONTACT THE HERALD Mike Benbow, Business Editor benbow@heraldnet.com   Published: Wednesday, August 20, 2008 Pentagon to release tanker requirements next week Associated Press WASHINGTON -- Final guidelines will be released next week for the latest round of bidding on a disputed $35 billion contract to replace an aging fleet of Air Force refueling planes, a Pentagon spokesman said Wednesday. The two likely bidders -- Boeing Co. and Northrop Grumman Corp. -- met for the third time in two weeks Wednesday with Defense Department officials at Wright-Patterson Air Force Base in Dayton, Ohio. Company and Pentagon officials discussed the forthcoming request for proposals that will outline the government's specifications for the airborne tanker. Pentagon spokesman Chris Isleib said the document could be given to the two companies as early as Monday. A draft version was released earlier this month as part of the second round of bidding on the contract that has fueled a bitter rivalry between Northrop and Boeing. Northrop was originally awarded the contract, but Boeing protested. The bidding was reopened after a Government Accountability Office review found errors that could have unfairly favored Northrop. Los Angeles-based Northrop has partnered with Airbus parent European Aeronautic Defense and Space Co. for its proposed plane. Airbus is Boeing's main rival in the commercial aviation market. Boeing's supporters have said the language in the latest request is still weighted in favor of Northrop's larger plane and that the timeline -- a contract award is expected by the end of December -- is too tight for Boeing to make any changes. Boeing spokesman Dan Beck said in an e-mail Wednesday that the Chicago-based company "appreciated the opportunity for further discussions" and "would welcome any continued dialogue." He would not comment on details from Wednesday's meeting with Pentagon officials. Northrop said in a statement that it did not seek Wednesday's meeting, but that the Pentagon's "openness" on the changed requirements means Boeing "will be hard-pressed to say they did not fully understand the amendments."

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