OLYMPIA, Wash. -- Northrop Grumman said it won't compete against Boeing for a $35-billion contract to build refueling tankers for the Air Force because it doesn't think it can win.
Northrop's Chief Executive Officer and President Wes Bush said the Pentagon guidelines for the program favor Boeing's smaller refueling tanker and does not provide what he calls "adequate value recognition" of the added capability of a larger tanker.
That, according to Bush, precludes Northrop from any competitive opportunity.
“For some people who want to worry about ‘will there be a competition,’ we had a competition,” Washington State democratic congressman Norm Dicks told KING 5 News.
“So we know exactly what Boeing’s numbers are here, and so the taxpayers aren’t going to be hurt in any way.”
But, the Obama Administration has said such sole-source contracts aren't a good deal for the taxpayer.
Industry insiders say there's no other company poised to meet the Air Force's guidelines for the program.
E-Mail
Print
