The Boeing Co. may not bid in a $35 billion Air Force tanker competition unless it’s given six months to prepare its bid, reports the Wall Street Journal.
The Chicago-based aerospace company is competing against Northrop Grumman and its partner EADS to replace 179 aerial refueling tankers for the Air Force. The Pentagon was expected to release next week its final terms in an expedited redo of a prolonged competition.
“I think the option we would have if we were not given the six months, there is a really high likelihood that we would no-bid the program,” Jim Albaugh, head of Boeing’s defense unit, told the publication on Thursday.
The Air Force originally awarded the contract to Northrop and EADS on Feb. 29. But government auditors recommended the Pentagon reopen the competition, saying Air Force errors could have cost Boeing the competition.
The Defense Department took over the reopened competition and recently released a draft of its revised requirements.
Just last week, Boeing indicated it might not bid in the contest. Northrop had issued a similar threat more than a year ago.
The Pentagon needs to demonstrate to Congress that it held a competition for the lucrative contract. If Boeing withdrew, the Defense Department would face difficulty getting funding for the tanker program.
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