Pentagon report blasts Boeing deal $23.5 billion tanker plan needs changes, inspector general says

WASHINGTON -- The Pentagon should not move forward on a $23.5billion plan to acquire 100 midair refueling tankers from Boeing Co.until significant changes are made to the deal, the Pentagon'sinspector general said Friday.

In a highly critical report, Inspector General Joseph Schmitz saidprocedural and financial problems with the deal could cause thegovernment to spend up to $4.5 billion more than necessary.

Once the changes are made, however, there is no compelling reasonnot to complete the deal, the report said.

The long-anticipated report said the Air Force's decision toacquire the tankers as a commercial item put the Pentagon at "highrisk for paying …