Northrop may pull refueling tanker bid (AP)

Northrop may pull refueling tanker bid

By BEN EVANS and MATTHEW DALY, Associated Press Writers

Sat Jan 27, 3:28 AM ET

WASHINGTON - The withdrawal by Northrop Grumman Corp. from an Air Force
refueling tanker contract bid potentially worth more than $100 billion would not
necessarily hand the deal to rival Boeing Co. — at least not right away.

The prospect of having only one bidder — Northrop Grumman is threatening to bow
out — on one of the most lucrative and controversial military contracts in U.S.
history is already raising eyebrows on Capitol Hill.

"If Northrop really does decide not to compete, the Air Force could find its program
stopped once again," said Frank Cevasco, a defense analyst and former Pentagon
acquisitions official. "There is far too much taxpayer money involved to award a sole-
source contract to Boeing. In my view the Air Force is playing a dangerous game that
could backfire once more."

Still smarting from an ethics scandal that stalled the contract three years ago, the
Air Force is expected to release within days its final call for bids to replace the
Eisenhower-era KC-135 midair refueling tanker.

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