Boeing (BA) to Submit Bid for U.S. Government $40B Refueling Tanker Contract, Isn't Counting Northrop Out (NOC)

Boeing (NYSE: BA) announced that in its bid to replace aging U.S. refueling planes, they would offer a 767-based option. The contract from the U.S. government is valued at $40 billion.

The company said that its "New-Gen Tanker" would meet all of the government's 372 requirements, and also offers a low-risk manufacturing option.

Boeing, as of right now, would be the only bidder on the project.

Northrop Grumman (NYSE: NOC) boycotted bidding for the contract last year after claiming that the specifications required tilted in Boeings favor.

However, the new CEO, Wes Bush, however, is weighing the implications of sitting out such a large contract. Northrop has concerns because in the past it has partnered with European Aeronautic Defence & Space Co., which manufactures Airbus planes. Critism that the government handed out such a large contract to a foreign entity would raise some questions.

Boeing's CEO, Jim Albaugh, isn't counting out Northrop, saying, "It's a big program and I'm not sure why anyone would walk away from it."

Boeing will submit its bid by May 10, 2010.

You May Also Be Interested In

• Boeing, RTX $4.5b Aircraft Sale to Qatar Gets Tentative Approval
• Klarna shares face pressure as JPMorgan cuts rating on weaker outlook
• China semiconductor equipment imports grow 9% in July, Barclays comments