BEIJING, July 10 (Xinhuanet) -- The Pentagon announced that it would reopen the competition for the controversial contract to replace the U.S. Air Force's fleet of refueling tankers, putting defense giants Northrop Grumman Corp. and Boeing Co. against each other once again.

    Defense Secretary Robert M. Gates said on Wednesday that he wants the dispute resolved by December.

    The 35 billion dollar contract was first awarded to Northrop and its partner, the European Aeronautic Defense and Space Company, the European parent of Airbus, back in February.

    Boeing protested the decision and filed an official protest with the Government Accountability Office in March.

    The GAO said in March that Boeing should be allowed another chance to bid on the contract after the office concluded that the Air Force made "significant errors that could have affected the outcome of what was a close competition."

    Both Boeing and Northrop issued news releases praising Gates' action. A Senate committee is to begin hearings into the tanker contract and the GAO report on Thursday.

    Northrop issued a statement on its Web site, applauding Gates' decision to move to a quick resolution on the deal, and saying that the Air Force "has already picked the best tanker, and we are confident that it will do so again."

    Northrop is based in Los Angeles and Chicago-based Boeing's Integrated Defense Systems unit has several operations throughout Southern California.     

    (Agencies)