In From the Cold: A Few Thoughts on the Tanker Deal

But Boeing's biggest blunder was, arguably, it's initial plan to lease 767 tankers to the Air Force. First approved in 2003, the deal was later abrogated when it was learned that the aircraft manufacturer had offered jobs to the service's senior civilian contracting official and two members of her family. The contracting official, Darlene Druyun, later served a 9-month prison sentence and two Boeing executives were convicted as well.

Not only did the tanker lease result in a huge fine, it also made Boeing "radioactive" in terms of future, big-ticket contracts. With an already-tight procurement budget, the Air Force did not want a rehash of the tanker lease controversy. And, with Northrop-Grumman offering more capability (at a slightly higher price), the service found it easy to justify the KC-30, heading off potential criticism that would come with a new Boeing deal.