Tuesday, December 1, 2009

NG threatens not to bid on tanker

Northrop Grumman won’t bid for the Air Force refueling tanker program unless changes are made to the draft request for proposals. In a letter to the Pentagon, Northrop notes the draft request shows a clear preference for a smaller tanker than the A330 the Northrop and teammate EADS are offering. The letter said competing would be a financial burden. Northrop and EADS won the contract in February 2008 over Boeing, which offered the smaller 767. The decision was overturned following a Boeing protest, and restarted in September. Northrop/EAD planned to build the tanker in Mobile, Ala. (Sources: Multiple, including Bloomberg, Reuters, Mobile Press-Register, 12/01/09)