Alleges Implied Favoritism Towards Boeing Proposal

Could a joint effort between Northrop Grumman and EADS North America for a lucrative new US Air Force tanker program be dead in the water? It could be soon... as Northrop has warned the USAF it may withdraw from the competition, over concerns about the bidding process.

The Wall Street Journal reports officials on the Northrop side of the partnership -- which has submitted a tanker variant of the Airbus A330 twinjet, against Boeing's 767-derived plane -- believe the draft bidding guidelines favor Boeing's admittedly less-expensive variant.

Northrop says the draft does not specify a detailed analysis for the expanded capabilities the company says its offering brings to the competition.

The A330-derived KC-30 tanker, Northrop says, holds the upper hand over Boeing's KC-767 offering on issues such as cargo capacity. But Boeing's bid is a lot cheaper... and in today's cost-conscious military complex, many see that point alone as giving Boeing a marked advantage.

Northrop likely won't pull out of the competition just yet, however -- as the Air Force has not issued the final bidding document. That may come as early as next week... which implies Northrop's threat may be a last-stab effort to insure the final draft gives equal priority to extra capabilities, as well as cost.

The tanker contract is valued at $100 billion.

FMI: www.northropgrumman.com/kc30/