Boeing bidding on $35 bil Air Force deal

WASHINGTON -- The Pentagon has opened a second round of bidding between Northrop Grumman Corporation and Chicago-based Boeing Company for a disputed $35 billion Air Force contract.

A revised request for proposals has been issued for a new aerial refueling tanker meant to replace the Air Force's current fleet that date back to the 1950s.

The team of Northrop and Airbus parent European Aeronautic Defence and Space Company won the original deal. Boeing, however, protested and won after a government review found "significant errors" in the Air Force's decision.

Defense Secretary Robert Gates later said he would reopen bidding.

A new decision is expected by the end of the year.