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Search Tags: KC-X
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.
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.
Reuter reports EADS is close to conceding its loss of the $35 billion Air Force KC-X tanker award to Boeing.
Defense contractor EADS is thinking about its options, following the Air Force's choice to give Boeing that $35 billion tanker contract.
Richard Aboulafia from the Teal Group offers a recap and a look ahead of the tanker saga.
The Air Force is expected to announce the winner of the KC-X refueling tanker contract Thursday. This will give Defense an extra weekday to respond to the questions that are sure to follow.