BusinessWeek reports that Boeing Co. (NYSE: BA) has repeated its threat not to bid on the $35 billion competition to supply an airborne refueling tanker to the Air Force. This is a competition that pits a Republican presidential candidate and his lobbyist former finance chair on the dole of a French aircraft company and its Alabama partner against the future prospects of a Democratically controlled Congress and White House that would tend to favor Boeing -- which has many workers in Washington state.

By threatening not to bid, Boeing is taking many big risks. The Air Force may decide to keep the terms of the competition the same -- bids due October 1 -- and contract wrap up before New Year's Day. If Boeing does not bid and the competition proceeds, EADS, parent of Airbus, and Northrop Grumman (NYSE: NOC) -- with many of its workers in the Republican-leaning Alabama -- would win the bid uncontested. If the Air Force extends the process another four months -- which Boeing would prefer -- there is a chance that the Air Force would still end up choosing the French company.

But Boeing is gambling that the odds of a more favorable outcome are greater if it threatens not to bid. Boeing thinks that Congress will not want only one bid for the Tanker and that Congress and the White House are likely to be controlled by the Democratic party in January. With the French lobbyist-backed candidate in the Senate minority, Boeing will be in a better position to shape the Tanker competition in a way that favors its victory.

Boeing (NYSE: BA) lost its bid for the new Air Force tanker to Northrop Grumman (NYSE: NOC). The aircraft builder was able to get the process re-opened and now has a shot at getting the business that was awarded to Northrop.

Winning another chance at the big contract is not enough. According to The Wall Street Journal, "Boeing Co. said it is inclined to bail out of its effort to win a $40 billion contract to build aerial refueling tankers for the U.S. Air Force unless the Pentagon agrees to give it a total of six months to submit a new bid."

Boeing claims that it will take a long time to figure out how to configure one of its airplanes to haul the amount of jet fuel required by the Air Force.

The request is bogus. Boeing has been through the bidding process for the tanker once before. The idea that the company did not understand the specifications is remarkable.

Boeing may be trying to gain time to shave some of its costs off the project so that it can bring the price of its bid down. It should have done that in the first round. There is no reason it should get that additional time.

It is no wonder Northrop got the original approval, and it is likely to get it again in this round.

Douglas A. McIntyre is an editor at 247wallst.com.

In yet another bout in the Boeing Co.(NYSE: BA)-Airbus slugfest, both are involved in bids to supply the U.S. Air Force with 12-18 refueling tanker planes annually. The contract value is estimated at $40 billion.

Airbus (EADS) is partnering with Northrop Grumman Corp. (NYSE: NOC) to offer the Northrop-Grumman KC-30, a version of EADS' A330. To counter the protests already being voiced by American workers about defense jobs being lost overseas, EADS would assemble the planes at Northrop's facility in Mobile, Alabama. EADS estimates 52% of the work would be done on U.S. soil, providing 25,000 jobs.

Boeing's proposal will offer the tanker version of its 767, the KC-767, which it claims will be 85% American-made and provide up to 44,000 jobs. The plane is already being used by the Italian Air Force and Japanese Air Self-defense Force.

The Air Force is expected to announce the winner of this competition by the end of the year.