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Northrop Grumman/BAE drop out of T-X


Slater

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My initial thought is that they have decided the commercial terms (i.e. the US government's "acquisition strategy") are not what they want to get in to as businesses. Whilst carefully treading around recent political announcements, it seems likely that the invitation to tender prescribes how the customer intends to pay (or not, as the case may be) 15 year old Ford Fiesta money for a brand new Rolls Royce product and aftercare service and Northrop Grumman and BAE Systems and considered it, and concluded that the contract would be a poisoned chalice for them if they won.

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The Raytheon/Leonardo team just broke up, with Raytheon withdrawing due to disagreements with Leonardo over pricing. It remains to be seen if the Italians will go it alone with their "T-100" offering.

 

Some observers are giving the SAAB/Boeing team the edge.

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