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Boeing Wins Bid to Rebid

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Chicago-based Boeing will have another chance to win a $35 billion Air Force contract.

The U.S. Air Force wants to build a fleet of re-fueling tankers- aircraft that are used to get gas to other planes. Earlier this year, it awarded the contract to a team led by Northrop Grumman Corporation. Boeing protested. And today, Secretary of Defense Robert Gates announced the contract would be re-opened.

GATES: I’ve concluded the contract cannot be awarded because of problems pointed out by the Government Accountability Office.

The GAO report found that the Air Force made a number of errors in awarding the tanker deal. The Department of Defense will now be responsible for choosing between the two companies instead of the Air Force. It expects to award a contract by December.

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