WASHINGTON, Sept. 10 (UPI) -- The U.S. Department of Defense Wednesday said it is ending the current bid competition for an Air Force airborne tanker replacement contract.
Congress and the two competing contractors -- Boeing and Northrup Grumman -- have been notified of the decision, the Defense Department said in a release.
After consulting with senior Pentagon and Air Force officials, Defense Secretary Robert Gates said he determine that the bidding and award process could not be completed by January, when the next president takes office.
In the original round of bidding, Northrup Grumman was awarded the Air Force aerial tanker contract worth as much as $100 billion. Boeing protested the decision, which was made in February. In June, the Government Accountability Office said the bidding process was flawed and recommended a second round of bids.
"Over the past seven years the process has become enormously complex and emotional -- in no small part because of mistakes and missteps along the way by the Department of Defense," Gates said. "It is my judgment that in the time remaining to us, we can no longer complete a competition that would be viewed as fair and objective in this highly charged environment."
The resulting "cooling off" period would allow the next president "to review objectively the military requirements and craft a new acquisition strategy," he said.
The Pentagon said it concluded the current aerial tanker fleet can be adequately maintained during the near term, and funding recommendations will be included in future Defense Department budgets.
