Pentagon procurement process at stake in tanker deal

The integrity of the Pentagon's procurement process is at stake in the protracted fight between Boeing Co (BA.N) and Europe's EADS (EAD.PA) over up to $50 billion in aerial refueling aircraft orders, the Defense Department's top weapons buyer said on Wednesday.

The Defense Department was determined to ensure a fair, free and transparent process, and had structured the terms of the tanker competition so it would be very clear which company won and why, said Ashton Carter, undersecretary of defense for acquisition, technology and logistics.

Clearly, the department needed new tankers, given the current fleet of KC-135 tankers are nearly 50 years old on average, but it also needed to protect the procurement process, Carter told Reuters in an interview.

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