Tanker Talks Over, No Word on Winner

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Top Pentagon officials ended a meeting on the U.S. Air Force’s plan to buy 179 new refueling aircraft late on Monday afternoon, with defense officials saying an announcement of the winner was unlikely before Tuesday, Reuters rerpots.


Boeing Co (BA.N: Quote, Profile, Research) is locked in a closely-watched battle with Northrop Grumman Corp (NOC.N: Quote, Profile, Research) and its European partner, Airbus parent EADS (EAD.PA: Quote, Profile, Research), for a contract that could be worth $30 billion to $40 billion over the next 10 to 15 years.


“It’s over,” said one defense official, who asked not to be named, when asked about the Defense Acquisition Board meeting convened on Monday to review the tanker program.


A second defense official confirmed the meeting was over, and said a news conference was unlikely on Monday, given the need to notify key lawmakers and the companies before any public announcement.


Pentagon chief arms buyer John Young was scheduled to meet with Sen. Jeff Sessions, an Alabama Republican who has strongly supported Northrop’s bid, on Monday afternoon, but a Republican source said the timing was coincidental. Sessions requested the meeting several weeks ago, before Monday’s meeting of the Pentagon’s top acquisition officials was scheduled.


One source briefed about the Defense Acquisition Board meeting said the discussion went well. “Nothing happened in the meeting that would lead to a delay.” said this source who asked not to be named.


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