Pentagon reopens tanker bidding

The AP (8/7, Manning) reports, "The Pentagon opened a second round of bidding Wednesday for a $35 billion Air Force tanker contract following an error-plagued first attempt that featured bitter competition between Northrop Grumman Corp. and Boeing Co." The Pentagon released a "revised draft request for proposals (RFP)," and was scheduled to hold "a briefing Wednesday afternoon to discuss the new selection process." A finalized version of the RFP "is expected to be released to both companies on Aug. 15," while "new bids are due Oct. 1 and a decision is expected by the end of the year." The AP notes, "The new round will be limited to the eight issues where government auditors found problems with the initial process."

Bloomberg (8/7, Capaccio, Ray) adds that the Pentagon "said it will give preference to a plane that carries more fuel, a decision that may aid Northrop Grumman Corp.'s original winning bid over Boeing Co." Additionally, "the tanker's long-term cost over 40 years" will be assessed, rather than 25 years, and the evaluation "will give extra credit for exceeding goals on the amount of fuel supplied."

The Hill (8/7, Tiron) points out that the Pentagon's decision to "measure the Air Force's cost of owning and operating the new tankers over 40 years" instead of 25 "could favor Boeing, as its plane uses less fuel and could cost the Air Force less over the longer period of time."

The AFP (8/7), Aviation Week (8/6), the Arizona Republic (8/7, Jarman), Newsday (8/7, Bernstein), the Atlanta Business Chronicle (8/7), the Washington Business Journal (8/7), the McClatchy-Tribune (8/6), and the Politico (8/6, DiMascio) also report the story.