Northrop is now saying that Boeing lost largely because they cannot be trusted to deliver on time or on budget. From their press release:

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Past Performance

A contractor’s past performance on related projects is a critical element in the Air Force’s assessment of competing proposals. Because replacing America’s fleet of aerial refueling tankers is the number one acquisition priority for the Air Force, it paid special attention to Boeing’s assertions that it could complete the contract on time and on budget. While Boeing likes to claim that it has a better track record than Northrop Grumman in building tankers, the Air Force determined that Boeing’s past record actually meant it was riskier to do business with Boeing than Northrop Grumman.

According to an Air Force document assessing the two bids, in program management ” … There was a notable difference between the two offerors. Northrop Grumman received a rating of ‘Satisfactory Confidence,’ while Boeing received a rating of ‘Little Confidence.'”

A rating of little confidence means the Air Force concluded that “Based on the offeror’s performance record, substantial doubt exists the offeror will successfully perform the required effort.” The reasons for the Air Force’s poor rating of Boeing were redacted for business competition reasons.

The Air Force stated that Northrop Grumman received a superior rating because of its “Excellent and satisfactory (risk) ratings on six (other) contracts.” The Air Force document concluded “The higher confidence rating for Northrop Grumman … was a discriminator” because “This difference in the program management provides better overall confidence. Northrop Grumman (was) more advantageous.”

It is worth noting that while Northrop Grumman has built, flown and tested a prototype aircraft and conducted a successful fuel transfer through its boom, Boeing has not yet built, flown or tested its proposed new design KC-767 aircraft. In addition, Boeing has been late in delivering tankers to Italy and Japan. These aircraft are significantly different from the design proposed to the Air Force.

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If this was said in a bar, fists, and possibly beer bottles would fly.