Both the USAF and Northrop Grumman are requesting that the Boeing Challenge be rejected, see here, here, and here.

Of more import is the fact that the UK just signed a contract for $13 billion for A330 tankers. Note that the contract is different, as it is to replace the RAF’s Lockheed TriStar and Vickers VC10s, and the former are large, as opposed to medium tankers, but it points to a trend.

I think that Boeing is out of the tanker business for the next 10 years, until the money is found to replace the KC-10 tankers.