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Northrop May Pull Refueling Tanker Bid

Saturday, January 27, 2007 3:28:30 AM
By BEN EVANS and MATTHEW DALY

 Crew chief Frank Cloud examines the interior of a F/A-18 Super Hornet fighter jet on the assembly line at the Northrop Grumman plant in El Segundo, Calif., in this Jan. 24, 2006 file photo. Northrop Grumman Corp.'s fourth-quarter profit rose 37 percent on higher sales and improved margins.  (AP Photo/Reed Saxon, File)WASHINGTON (AP) - 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."


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