Boeing demands Air Force brief on tanker contract

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Undated artist rendition provided by Northrop Grumman shows an aerial tanker refuelling an F-18 fighter. Top Air Force officials will testify on Wednesday before a House Appropriations subcommittee on their decision to award a $35 billion contract for a new refueling aircraft to Northrop Grumman Corp and European partner EADS. REUTERS/Northrop Grumman Corp/Handout

Undated artist rendition provided by Northrop Grumman shows an aerial tanker refuelling an F-18 fighter. Top Air Force officials will testify on Wednesday before a House Appropriations subcommittee on their decision to award a $35 billion contract for a new refueling aircraft to Northrop Grumman Corp and European partner EADS.

Credit: Reuters/Northrop Grumman Corp/Handout

NEW YORK | Tue Mar 4, 2008 1:27pm EST

NEW YORK (Reuters) - Boeing Co (BA.N) said on Tuesday it has requested an immediate briefing from the U.S. Air Force on the company's failed bid for a lucrative $35 billion refueling tanker contract, which was awarded last week to a rival team of Northrop Grumman Corp (NOC.N) and Europe's

EADS (EAD.PA).

Boeing said the Air Force had planned a briefing with Boeing on or after March 12, but the company said that delay was inconsistent with procurement practices.

The Chicago-based company said it was concerned with initial reports on the contract award process, which indicate that Boeing was considered the higher risk bidder.

"We do not understand how Boeing could be determined the higher risk offering," said Mark McGraw, vice president of Boeing's 767 tanker programs, in a statement. "It's important for us to understand how the Air Force reached their conclusion."

(Reporting by Bill Rigby; Editing by Tim Dobbyn)

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