US tanker competition to resume in spring - Gates

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WASHINGTON | Tue Jan 27, 2009 4:07pm EST

WASHINGTON Jan 27 (Reuters) - U.S. Defense Secretary Robert Gates said a multibillion dollar competition for new aerial refueling tankers should resume in early spring, with a contract award expected in early 2010.

"I would hope that we get this process going by early spring," Gates told the House Armed Services Committee on Tuesday, when asked about the timing of a new request for proposals in the competition. He said a contract award could follow "soon after the first of the new year."

Northrop Grumman Corp (NOC.N) and its European partner EADS (EAD.PA) beat out Boeing Co (BA.N) to win the contract last February, but the Pentagon in September decided to start over after government auditors found problems with the initial award. (Reporting by Andrea Shalal-Esa; Editing by Tim Dobbyn)

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