Northrop-Boeing Feud Over Tankers

The Puget Sound Business Journal reports: The grudge match between Boeing Co. and Northrop Grumman in the battle to win the U.S. Air Force’s refueling tanker replacement project got more heated on Tuesday.

The U.S. Air Force has issued a new request for proposals for a tanker to replace the aging Boeing 707-based fleet — a program that could be worth as much as $40 billion to the winning bidder.

On Tuesday, Northrop Grumman, which is partnering in its bid with EADS, the European maker of Airbus aircraft, called the new bidding process “unfair.” The consortium won the contract in 2008, but that win was canceled after protests from Boeing and political leaders about irregularities.

Los Angeles-based Northrop said the government gave Boeing pricing information on Northrop’s previous tanker bid, but Northrop hasn’t been given the same information on Boeing’s previous bids. Northrop said it was “greatly concerned” about lack of information provided by the government.

“With predominant emphasis placed on price in this tanker re-competition and Northrop Grumman again proposing its KC-45 refueling tanker, such competitive pricing information takes on even greater importance. It is fundamentally unfair, and distorts any new competition, to provide such critical information to only one of the bidders,” said Paul Meyer, Northrop Grumman vice president and general manager, in a statement.

Last week, Boeing said it might offer a tanker option based on its 767 or 777 jetliners. The 767 is smaller than the Airbus A330, the likely EADS option, while the 777 is larger. Both the 767 and 777 are built in Everett, Wash.