Reports: Northrop won’t bid, but EADS might

The Seattle Times is reporting that Northrop Grumman has decided not to bid on the U.S. Air Force’s contract to buy 179 aerial refueling tankers, leaving the Boeing Co. as the only bidder.

The Times report cites an unnamed source described only as “a person familiar with the details.”

According to the Times, a formal announcement with come from Northrop this afternoon, after the stock markets close in New York — which would be sometime after 1:30 p.m. Pacific Time.

If true, that leaves Boeing’s proposed NewGen tanker, based on its 767 airframe, as the only bid for the contract. But as The Herald in Everett reported this morning, that doesn’t make it a slam dunk for Boeing. With a sole-bid contract, you can be sure that Congress — particularly members of the pro-Northrop Alabama delegation — will closely scrutinize the deal to ensure that Boeing’s not indulging in price-gouging.

In addition, Reuters is reporting that Northrop’s partner in the tanker project, Airbus parent company EADS, is still considering entering a bid on its own.

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2 Responses to “Reports: Northrop won’t bid, but EADS might”
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  1. […] About « Reports: Northrop won’t bid, but EADS might […]

  2. […] with commentaries chastizing the European response to the recent decision by Northrop Grumman to not enter a bid for the tanker, a decision that effectvely froze joint-venture partner EADS out of […]

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