"I think it's bad public policy and I think it's bad acquisition policy," Gates told a news conference.

Some lawmakers in Congress have proposed dividing the mammoth contract between the rival aerospace firms but Gates dismissed the idea as impractical.

"It would require the Air force to maintain two different logistics facilities -- two different logistics trains -- two different kinds of training," he said.

The approach would result in duplication and much higher costs, Gates said.

"I just think it's a bad deal for taxpayers."

Democratic Representative Neil Abercrombie, chairman of the House Armed Services Subcommittee on Air and Land Forces, called last week for dividing the politically charged contract.

Abercrombie reportedly has the support of several lawmakers, including Democratic Congressman John Murtha, chairman of the House Appropriations Defense Subcommittee.

The politically charged contract was initially awarded in February 2008 to Northrup Grumman and EADS.

But the deal was withdrawn in July after US aerospace giant Boeing successfully appealed the decision with backing from members of Congress.

EADS is the parent company of European aircraft manufacturer Airbus, a fierce Boeing rival.

Gates said in January that he hoped to reopen bidding in the spring on the tanker project, with a decision due in early 2010.

The defense chief said he had received no request from the White House to delay the contract to replace the fleet of aging in-air refueling tankers.

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