Northrop may sue over tanker price release

[unhappycamper]

Northrop may sue over tanker price release
By John T. Bennett - Staff writer
Posted : Wednesday Oct 28, 2009 12:52:00 EDT

Senior Northrop Grumman officials said Wednesday they might pursue legal action over the Air Force’s 2008 disclosure to Boeing of the price Northrop and EADS pitched the service during the Pentagon’s last attempt to buy new aerial tankers. The officials also questioned a draft KC-X solicitation, charging it sets up a “price shootout” that could end with the service “paying more for less capability.”

The air service’s release of the Northrop-EADS pricing data has been at the center of the latest KC-X competition for several months.

The trans-Atlantic partners charge Boeing’s knowledge of both the price they proposed during the last tanker race and the price that emerged after being adjusted according to several criteria by the Air Force’s source selection team gives Boeing a big advantage.

Northrop and EADS were awarded a 179-plane, $35 billion KC-X contract in February 2008. Boeing quickly protested, and federal auditors found flaws with the process used to pick the Northrop-EADS plane.

The disclosure of both sets of prices puts Northrop-EADS “at a significant disadvantage” this time around, chief Northrop spokesman Randy Belote told reporters during a briefing Wednesday in Washington.


Rest of article at: http://www.airforcetimes.com/news/2009/10/airforce_tanker_102809w/

[Sherman A1]

1. There is a certain level of "hogwash" in this

If you are in any industry, you know the costs involved in it and those of your competitors. It may not be perfect knowledge, but you will be exceptionally close in your estimates. Pepsi knows pretty much what Coke's cost of production are as does Northrop know Boeing's.

This is much ado about nothing.