Air Force investigating disputed plane contract

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WICHITA, Kan. (AP) -- The U.S. Air Force is setting aside a disputed $354 million contract for a light air support plane and opening an investigation into the award.

The Air Force said in an emailed statement Tuesday that it advised the Department of Justice it will take corrective action on the contract. Secretary of the Air Force Michael B. Donley says the Air Force senior acquisition executive wasn't satisfied with documentation supporting the award decision.

The contract was awarded to Nevada-based Sierra Nevada Corp. in December. Wichita, Kan.-based Hawker Beechcraft filed a lawsuit alleging its own aircraft was wrongly excluded from the selection process.

The Air Force halted work on the contract last month after Hawker Beechcraft sued but said at the time it was confident in the merits of the award decision.