Northrop's political dance

One defense analyst is calling it the most politicized military contract he has ever seen, which says a lot. It's the bruising battle between Boeing and Northrop for a potential $100 billion contract to replace the Air Force fleet of refueling tankers. The Air Force just came out with a final set of bidding terms that could keep Northrop in the game. The L.A.-based defense contractor had threatened to pull out because the terms seemed to favor Boeing, and Northrop (in partnership European Aeronautics Defence & Space) didn't want to be a stalking horse in the Air Force's efforts to get a better deal. As for the politics, the Northrop group is favored by the Republicans and Boeing has the Democrats' ear. Boeing had an earlier contract to lease refueling tankers to the Air Force, but it blew that deal after a congressional investigation led to federal criminal convictions of two Boeing executives in 2005. From the Seattle Times:

The competing EADS-Northrop proposal calls for using an Airbus 330, which has a longer range than the 767 and could carry more fuel. But it would cost about 30 percent more per plane, so the military would buy fewer of them. The A330 also needs slightly larger runways and takes up more parking space.