WASHINGTON, D.C. (BNO NEWS) — Northrop Grumman confirmed on Monday that it will not submit a bid to the Department of Defense for the KC-X program, a $35B tanker contract.

“We reached this conclusion based on the structure of the source selection methodology defined in the RFP, which clearly favors Boeing’s smaller refueling tanker and does not provide adequate value recognition of the added capability of a larger tanker, precluding us from any competitive opportunity,” said Wes Bush, Chief Executive Officer and President of Northrop Grumman Corporation.

Bush said Northrop Grumman fully respects the Department’s responsibility to determine the military requirements for the new tanker.

Northrop Grumman and EADS team is very disappointed that the revised source selection methodology now dramatically favors Boeing’s smaller refueling tanker, according to Bush.

“We agree that the fundamental military requirements for the new tanker have not changed since the last competition, but the Department’s new evaluation methodology now clearly favors the smaller tanker.”

“We have decided that Northrop Grumman will not protest,” Bush added.