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Reaction: Deputy Defense Secretary William Lynn said Monday Pentagon officials "are disappointed" by Northrop Grumman's decision to withdraw from the Air Force's KC-X tanker contest (see Opting Out above). Further, he said the Defense Department still thinks the KC-X competition is "structured fairly" and that "both companies could compete effectively." Meanwhile, Boeing, which is now ostensibly the sole bidder, "remains 100 percent focused ... and intends to submit a fully responsive, transparent, and competitive proposal," said company spokesman Bill Barksdale. (Lynn statement) (Boeing statement) (See also EADS North America release)