UPDATE 2-GAO denies Northrop/Air Force motions on tanker protest

(Adds details from Boeing filing)

By Andrea Shalal-Esa

WASHINGTON, April 2 (Reuters) - The U.S. Government Accountability Office on Wednesday denied dismissal motions filed by Northrop Grumman Corp (NOC.N: Quote, Profile, Research, Stock Buzz) and the Air Force, after Boeing Co (BA.N: Quote, Profile, Research, Stock Buzz) submitted additional materials in its protest against a $35 billion Northrop aircraft contract.

Northrop announced the GAO decision and said it came after Boeing "streamlined its original protest and eliminated many of the elements that were central to the Air Force and Northrop Grumman motions."

But Boeing rejected that statement as "spin," and said it had added material to its initial protest filing, not eliminated any protest grounds.

"It's powerful stuff that adds even more to what we feel is a very strong, compelling case that the KC-X process was flawed," said Boeing spokesman Bill Barksdale.

Kenneth Miller, a special assistant to Air Force Secretary Michael Wynne, confirmed the GAO action. Miller said the Air Force would support the GAO as it continued its review of the Boeing protest.

The GAO is expected to rule on the case by June 19.

"This means we're going to go through the entire process," Miller told Reuters, adding that the Air Force had filed its motion to try to narrow the scope of the Boeing protest.