KPLU Local News
(2010-03-08)
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Boeing assembly mechanic Ryan Schutt works on the interior of a Boeing 767 at the 767 assembly line at Boeing's Everett, Wash., plant, in June, 2008.
AP Photo/Joshua Trujillo, Seattle Post-Intelligencer.
Northrup Grumman's announcement doesn't come as a surprise - the California company had been complaining ever since the Pentagon issued a draft of its revised guidelines for the contract that it was skewed in Boeing's favor. If Boeing prevails, it will build a refueling tanker based on the 767 - keeping that manufacturing line open and employing as many as 9,000 people in the Pacific Northwest.
"This was the last chance for the 767 to remain a viable line for many years to come," says defense analyst Loren Thompson.
"And it looks as though, after a decade-long struggle, Boeing has finally prevailed."
He says the only thing that could derail Boeing from getting the tanker contract now is if it bids too high or if Congress gets involved and delays the process. He thinks the latter is unlikely. But he also says ten years from now, Northrup may look like the more rational party with its decision to pull out.
"This is a very demanding contract. There's many potential pitfalls. And Boeing will have to work hard to make money."
He says the risk for bidders is very high because the request for proposals has 372 mandatory performance requirements and mandates fixed pricing. Thompson thinks Boeing is motivated above all by a desire to keep Northrup's partner Airbus out of the market. The Pentagon is expected to award the contract this fall.
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