Air Force: No major changes in tanker terms
WASHINGTON (Reuters) - The Pentagon is unlikely to make major revisions to its latest list of requirements for a fleet of refueling aerial tankers, despite objections from one of the bidders, Air Force Secretary Michael Donley said on Monday.
Northrop Grumman Corp (NOC.N) and its partner, European aerospace group EADS (EAD.PA), said this month it would not compete in the projected $50 billion competition without significant changes in terms that it argues favor rival Boeing Co (BA.N).
"The requirements part of the RFP (request for proposals) is very strong," Donley told the annual Reuters Aerospace and Defense Summit in Washington. "I wouldn't anticipate major changes to the RFP in that area."
The Northrop-EADS team won a contract to build 179 tankers for the Air Force in February 2008, but the deal was scrapped after U.S. auditors upheld a Boeing protest.
The companies are competing for a rematch of the competition.
(For summit blog: blogs.reuters.com/summits/)
(Reporting by Andrea Shalal-Esa, Tim Hepher; Editing by Phil Berlowitz)
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