Market Dominance, Efficiency, Innovation, and Globalization: A Case Study of the Tanker Competition between Boeing and Northrop Grumman/EADS

Report Number: NPS-AM-08-026

Series: Acquisition Management

Category: Collaborative Capacity

Report Series: Proceedings Paper

Authors: Nayantara Hensel

Title: Market Dominance, Efficiency, Innovation, and Globalization: A Case Study of the Tanker Competition between Boeing and Northrop Grumman/EADS

Published: 2008-04-01

Sponsored By: Acquisition Research Program

Status: Published--Unlimited Distribution

Research Type: NPS Faculty

Full Text URL: http://acquisitionresearch.net/files/FY2008/NPS-AM-08-026.pdf

Keywords: Boeing, Northrop Grumman/EADS, Air Force Refueling Tankers

Abstract:

The purpose of this analysis is to provide a case study of the competition between Boeing and Northrop Grumman/EADS for the Air Force refueling tankers contract and to discuss the role of many of these considerations in the controversy. This is an important case study because it highlights: (a) the concerns of the American people that they are continuing to lose manufacturing jobs overseas and the solutions that they are considering to lessen that problem; (b) the conflict between the concept of the US and European defense companies as partners against common threats to provide the best systems possible and the concept of them as competitors; (c) the concerns of an incumbent that it is losing its traditional edge; and (d) the desire to have an open and fair government procurement process in which all parties are able to accept the outcome that the process produces. This case study explores the background behind the contract, the reactions to the awarding of the contract, the reasons for the awarding of the contract, and the likely implications of the Boeing/Northrop Grumman-EADS competition for the competing firms, the government contracting process, and the global market.