Northrop May Not Bid On Tanker Contract

Defense contractor Northrop Grumman (NYSE: NOC) said it may not bid on a lucrative Defense Department contract for aerial refueling tankers unless the Pentagon significantly changes terms of the competition.

Northrop is competing against Boeing (NYSE: BA) for the contract and has said the bidding process unfairly favors smaller aircraft.

In a letter to the Defense Department, Northrop President Wes Bush said the terms also imposed a structure that "places contractual and financial burdens on the company that we simply cannot accept."