WASHINGTON, Dec 11 (Reuters) - The Pentagon's chief arms
buyer has approved the next steps in a long-awaited
multibillion-dollar competition to replace the Air Force's aging
fleet of E-8 JSTARS spy and battle management planes, according
to two sources familiar with the decision.
Frank Kendall, undersecretary for acquisition, technology
and logistics, this week signed a memorandum approving the start
of the so-called Milestone A phase of the program, paving the
way for funding of demonstrations of the new aircraft, said the
sources, who were not authorized to speak publicly.
Three teams are competing for the work: Northrop Grumman (N:NOC)
Corp NOC.N , which built the existing planes and is teamed up
with General Dynamics Corp (N:GD) GD.N ; Lockheed Martin Corp (N:LMT) LMT.N ,
which is working with Canada's Bombardier BBDd.TO ; and Boeing (N:BA)
Co BA.N .