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Grumman backs out

Company decides to not compete with Boeing on tankers

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WASHINGTON - Northrop Grumman Corp. has decided not to compete against Boeing Co. for the $35 billion the Air Force will spend to buy its own fleet of refueling tankers.

Congressional and industry officials confirmed the decision Monday. It puts the Pentagon on a path to do something President Barack Obama didn't want to have happen on his watch: pay large amounts of money to a company without undergoing any competition.

The Obama administration had said these kinds of sole-source contracts aren't a good deal for the taxpayer. But industry insiders say there's no other company poised to meet the Air Force's guidelines for the program.

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