Boeing Says Air Force Miscalculated Tanker Costs

WASHINGTON (AP) _ Boeing says the Air Force has conceded it chose the more expensive option in awarding a 35 billion-dollar tanker contract to a team led by Northrop Grumman.

The Air Force says it cannot legally comment on the tanker proposals, but Northrop confirms that the Air Force has found that the Boeing tanker proposal included cheaper life-cycle costs.

Boeing's disclosure is its latest attempt to show that the Air Force's award to the parent company of rival Airbus and Northrop was unfair. The company's claims were detailed in documents filed as part of its protest of the contract to the Government Accountability Office.

Kansas officials have said the decision would cost the Wichita area 500 jobs and the state, 3,800.

Kansas Congressman Todd Tiahrt said yesterday the miscalculations show that the tanker contract should be "re-competed.''

The GAO is expected to rule within days.

(Copyright 2008 by The Associated Press. All Rights Reserved.)


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