KHQ Right Now - News and Weather for Spokane and North Idaho | Boeing gets another chance at $35 billion Air Force contract

Boeing gets another chance at $35 billion Air Force contract

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SEATTLE - Boeing will get another chance to compete for a $35 billion contract to build new refueler tankers for the Air Force.

Washington Congressman Norm Dicks confirmed the news Wednesday morning, saying the competition will be an accelerated recompetition.  The Department of Defense - not the Air Force - will oversee the new competition.

Boeing lost the deal to EADS and Northrup Gruman last February.

In June, the Government Accountability Office decided in favor of Boeing in its protest that the Air Force made at least 7 errors in awarding the contract to builders who would use an Airbus plane.

The GAO said the Air Force failed to properly assess the proposals, misled Boeing about changes and miscalculated costs.

Boeing proposed a tanker based on its 767 plane, which is assembled in Everett and would be modified in Wichita, Kansas. Boeing has said the Air Force improperly chose the larger Airbus A330 after indicating the 767 was the right size for the job.

The order for 179 tankers is the first of three Air Force contracts worth as much as $100 billion over 30 years to replace a fleet of nearly 600 tankers.

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