Lawmaker hopes Northrop won't drop tanker bid

Decision to pull out would be a "blow to the program," Rep. John Murtha says.

House Defense Appropriations Subcommittee Chairman John Murtha, D-Pa., said Wednesday that he hopes the Pentagon can keep both bidders in the competition for the Air Force's next generation of aerial refueling tankers.

On Tuesday, Northrop Grumman Corp. threatened to pull out of the competition, arguing that the Pentagon's approach unfairly favors a smaller plane produced by rival Boeing Co.

"It's a blow to the program," Murtha said. "I can't imagine they can do it without competition."

Northrop wants the Pentagon to make significant changes to the Request For Proposals to make it worthwhile to stay in the competition for the contract, worth at least $35 billion.

Also Wednesday, Defense Secretary Robert Gates told lawmakers he believes the competition is fair, but said officials are reviewing all comments on the draft RFP before issuing the final document next month.

"We believe that both of the principal competitors are highly qualified, and we would like to see competition continue in this process," Gates said.