Northrop opts out of tanker bid

Northrop Grumman said that it decided not to proceed after it emerged that the source selection methodology now favoured Boeing’s smaller refuelling tanker.

’We continue to believe that Northrop Grumman’s tanker represents the best value for the military and taxpayer - a belief supported by the selection of the A330 tanker design over the Boeing design in the last five consecutive tanker competitions around the globe. Regrettably, this means that the US Air Force will be operating a less-capable tanker than many of our allies in this vital mission area,’ said Wes Bush, chief executive officer and president of Northrop Grumman.

The European Commission noted the decision with interest. ’It is highly regrettable that a major potential supplier would feel unable to bid for a contract of this type. Open procurement markets guarantee better competition and better value for money for the taxpayer,’ said commissioner Karel De Gucht.

In February 2008, Northrop Grumman and EADS were selected and awarded the contract to provide aerial refuelling tankers for the US Air Force in a fair and transparent competition. The award was subsequently cancelled at the end of 2008.