Delayed Bombshell.

The article reports that after auditors found evidence of favoritism in a 2001 competition, the U.S. Air Force is reversing its strategy and recompeting the second phase of the Small-Diameter Bomb (SDB) program. Lockheed Martin Corp., which lost the contract in 2003 to Boeing Co., says it is "evaluating" whether there is a "proper business case" to place a bid. Boeing estimates the initial SDB contract, worth $188 million, would eventually lead to more than $2.5 billion in worldwide sales, including a USAF order of more than 24,000 weapons. The conduct of the competition came into question after former top Air Force acquisition official Darleen Druyun received a prison sentence for improper job negotiations with Boeing while she was overseeing the company's Air Force programs.