Article: Game On: Northrop Grumman Will Compete For Air Force Tanker Contract.

By Jen DiMascio and Michael Sirak

Boeing [BA] and a team made up of Northrop Grumman [NOC] and the European Aeronautic Defense and Space Co. (EADS) will compete for an Air Force contract to replace its next-generation refueling tankers worth up to $40 billion.

The Northrop Grumman-led team, which felt that the Air Force's draft request for proposals (RFP) for the KC-X did not put enough weight on the ability to haul passengers and cargo, had threatened to withdraw from the competition.

But, yesterday, the company announced the final RFP had changed enough that it would participate.

"After carefully studying the final language in ...

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