Boeing welcomes Pentagon tanker move but has concerns

Wed Jul 9, 2008 5:55pm EDT
 
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NEW YORK (Reuters) - Boeing Co (BA.N) said on Wednesday it welcomed the Pentagon's decision to reopen the competition for a $35 billion Air Force aerial refueling tanker contract, but was worried that selection criteria for the program might change.

"We welcome the decision by Defense Secretary Robert Gates not to proceed with the contract award to Northrop Grumman/EADS and to reopen the KC-X tanker competition," Boeing said in a statement.

"However, we remain concerned that a renewed request for proposal may include changes that significantly alter the selection criteria as set forth in the original solicitation."

Boeing lost the competition to Northrop Grumman Corp (NOC.N) and its European partner EADS (EAD.PA) in February, but successfully protested the award with the Government Accountability Office.

"As the Government Accountability Office reported in upholding our protest, we submitted the only proposal that fully met the mandatory criteria of the original RFP (request for proposal)," Boeing said in its statement.

"We look forward to working with the new acquisition team as it reopens the competition, but we will also take time to understand the updated solicitation to determine the right path forward for the company."

(Reporting by Bill Rigby; editing by Jeffrey Benkoe)

 

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