Northrop Grumman bows out of tanker bid

"We continue to believe that Northrop Grumman's (refueling) tanker represents the best value for the military and taxpayer," said Wes Bush, chief executive officer and president of Northrop Grumman, which had won a previous bid for the contract that was later withdrawn when Boeing cried foul over the selection process.

Bush said the latest Request For Proposals "clearly favors Boeing's smaller refueling tanker."

In a statement, Bush said the company would not protest the selection process, although he felt there were "substantial grounds" for overturning the revised selection process.

However, "America's service men and women have been forced to wait too long for new tankers," he said.

Media reports have put the value of the tanker contract at about $40 billion in the short term and about $100 billion in the long term, given maintenance and replacement contracts will likely go to the company that produces the aircraft.

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