Pentagon will reopen $35B contract
The controversial Northrop Grumman contract, one of the largest in military history, has been criticized by the GAO.
WASHINGTON (CNN) -- The Pentagon will reopen bidding Wednesday for one of the largest contracts in military history, Sen. Richard Shelby, Republican of Alabama, said in a statement on his Web site.
Defense Secretary Robert Gates will make an official announcement at 1 p.m. Wednesday, a Defense Department spokesman said, without specifying what the decision would be.
The Air Force made an internal recommendation for a new round of bidding after congressional auditors rebuked the service for "serious errors" in awarding the $35 billion contract to Northrop Grumman, Pentagon officials tell CNN.
Gates will make the final decision on whether to take new bids. He said Tuesday he took the Government Accountability Office report "very seriously" and would announce a decision "very soon."
The Air Force originally - and unexpectedly - awarded the $35 billion contract to Northrop Grumman, which was backed by Airbus. Many experts had anticipated Boeing would win the contract to build tankers that can refuel airplanes in flight.