Tanker News
Pentagon Attempting To Keep Competition In Tanker Contract Bids
The Financial Times (12/3, Lemer) reports that the Pentagon is attempting to save the contest between Northrop Grumman (with partner EADS) and Boeing after the former withdrew their joint bid for a contract to replace the Air Force's aging fleet of air refueling tankers. However, at least some industry observers say Northrop's move is a tactic to gain a better position.
Northrop Unlikely To Withdraw From Air Force Bid. MarketWatch (12/2, Hinton) reported despite claims Northrop Grumman would "pull out of bidding" for the Air Force's aerial-refueling contract, analysts say it's "merely a posturing move." This tactic has been successfully used before by Northrop, having won an Air Force contract in 2007 over Boeing after claiming that the bidding requirements favored Boeing. If Northrop were to abandon its bid, Boeing would be the sole bidder to provide the Air Force with 179 tanker aircraft.
In his column in the Seattle Times (12/2), Jon Talton writes, "Northrop Grumman's threat to pull out of bidding for the Air Force tanker contract falls into the 'I'll believe it when I see it' department." He adds, "Northrop is also playing a political game, demanding major changes to the Pentagon's parameters for the tanker bidding, and you can bet it will have the support of Alabama's congressional delegation."
