Talks continue over tanker termination fee

EADS North America and KC-45 prime contractor Northrop Grumman are still in talks with the Air Force about termination of its tanker contract. Defense Department leadership killed the award after congressional auditors cited flaws in the process after a Boeing protest. After an initial attempt to speed through a new acquisition award this year, Pentagon leaders punted the program to the next administration. EADS/Northrop wanted to build the planes in Mobile, Ala., and Boeing wanted to build them in Washington State. (Source: Aviation Week, 10/06/08)