Sierra Nevada sues to reinstate Air Force contract

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Associated Press

Posted on June 13, 2012 at 12:01 PM

Updated Wednesday, Jun 13 at 1:00 PM

WICHITA, Kan. (AP) — The legal wrangling for a disputed $354 million U.S. Air Force contract to build a light air support plane to help security efforts in Afghanistan has returned to the courtroom.

Sierra Nevada Corp. sued Tuesday in the U.S. Court of Federal Claims seeking reinstatement of the contract.

Wichita-based Hawker Beechcraft Corp. had challenged the award late last year. The Air Force announced earlier this year that it was rescinding the contract and opening an investigation.

SNC says the contract's cancellation was an extreme response to paperwork errors by the Air Force. It also contends the revised bid proposal is tilted in favor of the competition.

Hawker Beechcraft declined to comment on the lawsuit.

At stake is a contract that ultimately could be worth nearly $1 billion, depending on future orders.

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