Boeing may walk away with Air Force tanker contract if Northrop doesn't bid

Source URL: http://seattletimes.nwsource.com/html/businesstechnology/2003532252_webboenorth19.html
Posted at: http://www.air-attack/com/news/news_article/2288

WASHINGTON -- Defense contractor Northrop Grumman is not expected to bid on an estimated $100 billion contract for Air Force refueling planes, potentially paving the way for Boeing to walk away with the deal, a source familiar with the matter said.

Loren Thompson, a defense analyst at the Lexington Institute, said officials at Northrop signaled to him Thursday that the company does not intend to compete on the final request for proposals, which could come as early as next week.

"They believe the current wording of the solicitation is so unfavorable to them that bidding would be pointless," Thompson said, citing the Air Force's apparent interest in a less ambitious and less expensive proposal than Northrop favors. "They have zero expectations that they could prevail in the type of competition that is shaping up."

A Northrop spokesman said the company has not yet decided whether to compete, although there has been speculation among analysts for weeks that they would not.

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