Northrop Drops Tanker Bid; NLPC Exposed Boeing Scandal

tankerOn Monday, Northrop Grumman Corporation announced that it would drop out of the competition with Boeing to build midair refueling tankers for the Air Force. Boeing had the original contract until NLPC exposed a scandal that sent two Boeing executives to prison.

The tankers are flying gas stations that refuel fighters and bombers on long-range missions. By exposing the scandal, NLPC saved taxpayers billions of dollars. The original plan was for the Air Force to lease, rather than buy, a hundred 767s to be used as tankers from Boeing. The new contract will be for the outright purchase of the planes.

In February 2008, the Air Force awarded a huge $40 billion contract to a Northrop/EADS consortium, after competition had been reopened in the wake of the scandal. Boeing then counter-attacked by successfully seeking to get the selection criteria changed and competition again reopened. Although NLPC had no favorite between …