Northrop Grumman Not Bidding On $40 Billion Tanker Contract

Mobile will not be the home of the KC-30.

Northrop Grumman announced Monday that it will not bid a second time for the $40 billion dollar contract. Wes Bush, President & CEO of Northrop Grumman, says the Defense Department's final RFP "clearly favor's Boeing's smaller refueling tanker."

While the company continues to believe that it's tanker represents the best value for the military and taxpayers, Bush says Northrop Grumman has a responsibility it its shareholders and "investing further resources to submit a bid would not be acting responsibly."

Northrop Grumman will not file a protest saying "America’s service men and women have been forced to wait too long for new tankers."

(Click here to read Northrop Grumman's complete statement)

In an interesting twist to the tanker story, Reuters is also suggesting that EADS will consider bidding alone. But EADS did not say one way or the other in a statement released Monday afternoon.

Boeing is the only company confirming that they are bidding on the massive military deal, Defense expert Loren Thompson says this contest is "a gift to Boeing from the Obama Administration." Northrop backers have said for weeks that the new contest favors Boeing.

In February 2008, Northrop and EADS won the contract but Boeing successfully protested.

Reaction from Congressman Jo Bonner
“I am deeply disappointed that Northrop Grumman was unable to submit a bid for the KC-X tanker program. Frankly, I am outraged at the Defense Department’s bungling of this contract for what is now the third time.

“I wrote President Obama last month and warned him the Pentagon was headed down a path that would kill the chance of competition in the tanker program. Now that is precisely what has happened..."

Click here to read more from Bonner.

Reaction from Senator Jeff Sessions
“This is truly a dark day for the American warfighter and for the Pentagon. Today’s withdrawal by the Northrop Grumman team is concrete proof that the dramatic changes in the way that the Pentagon will evaluate competing proposals had the effect of eliminating the superior aircraft that was the low bidder in the last competition. Tasked by Congress to conduct a fair competition, the Obama Defense Department rewrote the bid rules in such a biased fashion that only one team felt it could win."

Click here to read more.

Reaction from Senator Richard Shelby
“The Air Force had a chance to deliver the most capable tanker possible to our warfighters and blew it. This so–called competition was not structured to produce the best outcome for our men and women in uniform; it was structured to produce the best outcome for Boeing. The Air Force’s refusal to make substantive changes to level the playing field shows that once again politics trumps the needs of our military.”

Reaction from Gov. Bob Riley
"This administration decided before the President was even elected that this was going to a Chicago company and it did."

Reaction from Congressman Artur Davis
"Northrop Grumman’s decision is disappointing but not unexpected. The politicization of this procurement decision by Boeing’s advocates and the outright distortions about Northrop Grumman’s bid have contributed to an environment that has undermined the tanker competition in a fundamental way. The only viable option is Congressional intervention on behalf of a dual award that would create jobs across the United States and that would produce a tanker contract that saves money for the American taxpayer."

Reaction from Mobile Mayor Sam Jones
"To win a $40 billion tanker contract one year and the next year be placed in a position where we cannot even compete is disappointing!

Though today's news is troubling, Mobile and its team should not be discouraged. We have been quite fortunate in this community. We've won ThyssenKrupp, Austal and SSAB. There are other opportunities in our future which the Mobile team stands ready to vigorously pursue."

Click here to listen to the mayor's entire message.

Reaction from Mobile County Commissioner Steve Nodine
"I am extremely disheartened by Northrop Grumman Corporation’s decision today not to bid on the aerial refueling tanker program.
The war fighter, the American taxpayers, and the workers of the Gulf Coast have been cast aside in favor of “Political Protectionism.”

My primary remorse is for the fighting men and women of this great country whose safety and ability to do their job was not foremost
in the decision-making process. I am appalled that our military procurement process has been held hostage by politics but this
is indeed what has happened"

Click here to read Nodine's complete statement.

Reaction from Mobile County Commissioner Mike Dean
"Obviously the current lawmakers in Washington, despite their talk of job creation, are more concerned with protecting certain constituencies.

I called the final request for proposals a “sham” when it was released two weeks ago. I stand by that statement today."

Click here to read more from Dean.