Pentagon delays $35B Air Force tanker decision

— The Defense Department will wait until the next administration to award a disputed $35 billion contract to build a new fleet of aerial refueling tankers.

Rep. Norm Dicks, D-Wash., says the Pentagon has canceled the latest round of bidding between Boeing Co. and Northrop Grumman Corp. for the 179 planes, and now plans to hold a new competition next year.

Northrop won the contract earlier this year, but the competition was reopened after the Government Accountability Office found fault with the decision.

The decision to delay the disputed competition on the tanker contract until the next administration was welcomed by striking Boeing Co. machinists in Wichita.

But some Boeing workers are still angry with Republican presidential candidate John McCain's record on the tanker contract.

They say that will affect the way they vote come November. McCain played a key role in blocking an earlier version of the tanker deal that awarded the contract to Boeing. The GOP nominee has promoted his role in fighting "pork," such as the tanker project.

The military modification work on the plane would have been done at Boeing's Wichita plant.

Boeing mechanic Bob Feldt said Wednesday that he would not be surprised if the tanker contract cost McCain votes.

Kansas lawmakers also hailed the decision to delay the competition.


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