The Hill is reporting that the Government Accountability Office (GAO) has sided with Boeing in a dispute between aerospace giants over a $40 billion Air Force contract for midair refueling tankers .  The Air Force originally awarded the contract to Northrop Grumman and EADS North America.  Under federal procurement rules, the appeal of the contact was heard by GAO.

From The Hill:

The GAO said it had determined the Air Force had made “a number of significant errors” that led to its decision to award the contract to Northrop Grumman.

More on this developing story as details emerge.

Update:  Read the GAO's Statement .