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Northrop Grumman drops out of Air Force tanker competition

Northrop Grumman Corp. has decided not to compete against Boeing Co. for the $35 billion the Air Force will spend to buy its own fleet of refueling tankers. The decision puts the Pentagon on a path to doing something President Barack Obama said shouldn't happen any more: paying large amounts of money to a major defense contractor without undergoing any competition.

Tags: contracting , Northrop Grumman , Boeing , EADS , USAF , KC-X

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Analyst: Northrop could have been tanker contender

Jim McAleese, defense analyst and principal at McAleese & Associates, says Northrop's decision will affect the outcome of the KC-X contract and the future of the C-17.

Tags: contracting , Northrop Grumman , Boeing , EADS , USAF , KC-X , C-17 , Jim McAleese , McAleese & Associates

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