The US Air Force is to strip Boeing of a $3.3 billion upgrade contract that has been discredited in an ever-widening procurement scandal. Production and installation of C-130 Avionics Modernization Program (AMP) kits will be offered for re-competition after 2009, one year after Boeing completes a development and demonstration phase worth $1.8 billion.

Boeing was found to have won the contract after an improper intervention by Darleen Druyun, a former USAF acquisition official since jailed for steering contracts to Boeing.

Source: Flight International