Monday, March 8, 2010

Northrup Grumman backs out of bid to build refueling tanker


Boeing got a big win Monday with the announcement by Northrop Grumman that it was pulling out of the competition to build a new Air Force refueling tanker.

The Air Force initially awarded the $35 billion contract to Northop Grumman, along with its European partner, EADS, the maker of Airbuses.

But such a stink was was raised by Boeing and lawmakers unhappy that a European company stood to benefit from the initial contract that the Pentagon conducted a special review of and eventually decided the Air Force should rebid the contract.

That process was underway when Northrop decided it wasn't worth its while. More specifically, the aerospace company indicated it couldn't justify the costs of competing for the contract again, and neither could its suppliers.

Governor Haley Barbour wasted no time offering a statement of his own to show his disgust with the news.

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