[PV] U.S. Lawmakers Blast Boeing Defense Contract Snub

[Frenchy]

Now we are out-sourcing our defense...



U.S. Lawmakers Blast Boeing Defense Contract Snub


By veronica smith, agence france-presse
Published: 1 Mar 14:13 EST (09:13 GMT)

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WASHINGTON - U.S. lawmakers reacted angrily to the award of a $35 billion Defense Department contract to a Northrop Grumman/EADS team, a major coup for Europe's Airbus at the expense of U.S. giant Boeing.

Reacting to the Feb. 29 decision by the U.S. Defense Department to award the contract for a fleet of in-flight refueling aircraft, Sen. Sam Brownback, R-Kan., said he was "shocked at this decision and very disappointed."
"I'll be calling upon the Secretary of Defense for a full debriefing and expect there will be a protest of the award by Boeing," Brownback added.
"It's stunning to me that we would outsource the production of these airplanes to Europe instead of building them in America."
Rep. Todd Tiahrt, R-Kan., said he was "deeply troubled."
He added: "We should have an American tanker built by an American company with American workers," he said. "I cannot believe we would create French jobs in place of Kansas jobs."
According to the Boeing Web site, the company is the largest employer in Kansas.
But a senator from Alabama, where some of the work will be done, welcomed the decision.
"Not only is this the right decision for our military, but it is great news for Alabama," said Richard Shelby, a Republican.
The contract was expected to bring up to 1,800 jobs to the Mobile area and 5,000 to the state, he added.
Airbus will assemble the tankers in Mobile, Ala., and had said that if it won the contract it would transfer assembly of its commercial 330 aircraft there, creating jobs.
Los Angeles-based Northrop Grumman and the European Aeronautic Defense and Space Company (EADS), parent of Airbus, will provide up to 179 tankers for the U.S. Air Force.
The Boeing Company, the second leading U.S. defense contractor after Lockheed Martin, had been considered the heavy favorite.
The contract for the newly named tanker, the KC-45, is one of the largest Pentagon contracts in recent years and the first order on a tanker market valued at more than $100 billion in more than 30 years.
It marked an unprecedented triumph for EADS, which has achieved a foothold in the world's largest defense market after a history of minor contracts.
"The tanker is the No. 1 procurement priority for us right now. It is the first step in our critical commitment to recapitalize our aging fleet to move, supply, and position assets anywhere," said Gen. Duncan McNab, U.S. Air Force chief of staff.
The Northrop Grumman/EADS team "clearly provided the best value for the government," said Sue Payton, assistant secretary for Air Force procurement.
Ronald Sugar, chairman and chief executive of Northrop Grumman, said: "Northrop Grumman's vast expertise in aerospace design, development and systems integration will ensure our nation's war fighters receive the most capable and versatile tanker ever built."
The competition had been closely watched because of the size of the contract and the political implications of a choice between an all-American contractor or a mainly U.S. team that includes a foreign contractor.
In Paris, EADS CEO Louis Gallois told AFP the contract was a "great subject of pride" for the company and would "encourage it to pursue its strategy in the United States."
Price had not been the deciding factor in the matter, said Gallois, as the choice had been made on "the qualities of the plane."
French Prime Minister Francois Fillon congratulated Gallois in a statement on March 1, saying the contract brought "honor to France and to Europe."
Boeing expressed its strong disappointment and said it would ask the Air Force for an explanation.
"Once we have reviewed the details behind the award, we will make a decision concerning our possible options," said Boeing spokesman William Barksdale, hinting at a possible protest.
Boeing and the EADS-Northrop team had been competing for more than a year for the prize, which offers a cushion for decades in case of a downturn in the highly cyclical market for commercial aircraft.
Richard Aboulafia, an analyst at Teal Group Corporation, said the contract was a "major boost" for EADS.
"This is, by far, the biggest U.S. defense contract ever obtained by a continental European company," Aboulafia said.
EADS's winning offer is a modified version of the Airbus 330. The commercial plane will be militarized by Northrop Grumman and its American partners to prevent the transfer of sensitive technology to a foreign entity.
Boeing proposed a version of its long-haul cargo plane, the 767-200.
In May 2003, a similar tanker contract was awarded to Boeing, but it was annulled under allegations of procurement fraud, for which Boeing paid a record $615 million settlement to the government.
http://www.defensenews.com/story.php...93&c=AME&s=AIR

[Gorillaman]

Un Real...
this says, The S will HTF and soon.... it's just a symptom of deeper issues our country has..

Bravo Sierra

[AZXD]

In Paris, EADS CEO Louis Gallois told AFP the contract was a "great subject of pride" for the company and would "encourage it to pursue its strategy in the United States."

So france is buying a piece of America.
How much of this country are they gonna sell

I guess I shouldn't care. Most investors have given up on investing in U.S. stuff anyway. They make to much in foreign investments as our currency continues to tank behind the lies we are fed. Give me my stimulus check of appeasement. I'll shut up!

Yes!
The S will HTF
We have issues. Many of them and they don't seem to be getting any better.

[Frenchy]

This will be costly in the long run. AirBus has no experience with this type of aircraft compared to Boeing, and it will show during the lifespan of the aircraft.
Stupid deal, and you wonder why the Congress is regarded so highly!

[AZXD]

Originally Posted by Frenchy

This will be costly in the long run. AirBus has no experience with this type of aircraft compared to Boeing, and it will show during the lifespan of the aircraft.
Stupid deal, and you wonder why the Congress is regarded so highly!

How much do you want to to bet they have cost overruns during development and build. It is afterall a government contract, so I expect our currency will have a lower global worth, when it is time to sign checks.

[Delija]

Originally Posted by AZXD

How much do you want to to bet they have cost overruns during development and build. It is afterall a government contract, so I expect our currency will have a lower global worth, when it is time to sign checks.

Excellent point.

I wonder if the flyboys will be munching on microwave 'freedom fries' on long flights on those aircraft

Peace,
D.

[Delija]

McCain team lobbied for Airbus over Boeing
by<SCRIPT type=text/javascript> makeprofilelink("Chris in Paris"); </SCRIPT> Chris in Paris · 3/11/2008 04:39:00 AM ET · Link</B>



The McCain "Leave no Lobbyist Behind" program in action. Good work, when you can get it. In McCain's defense, define "neutral" and then let's talk.

According to lobbying records filed with the Senate, Loeffler Group lobbyists on the project included Loeffler and Susan Nelson, who left the firm and is now the campaign's finance director. Ogilvy lobbyist John Green, who was assigned the EADS work, recently took a leave of absence to volunteer for McCain as the campaign's congressional liaison.

"The aesthetics are not good, especially since he is an advocate of reform and transparency," said Richard Aboulafia, an analyst with the aerospace consulting firm Teal Group. "Boeing advocates are going to use this as ammunition."

McCain, a longtime critic of influence peddling and special interest politics, has come under increased scrutiny as a presidential candidate, particularly because he has surrounded himself with advisers who are veteran Washington lobbyists. He has defended his inner circle and has emphatically denied reports last month in The New York Times and The Washington Post that suggested he helped the client of a lobbyist friend nine years ago.

AMERICAblog: A great nation deserves the truth

[Frenchy]

I'll hold off on the "guilt by association".

[Delija]

Originally Posted by Frenchy

I'll hold off on the "guilt by association".

That's why I made no comment. Just came across the article and threw it out there. As of now, I'd most likely vote for McCain (Despite his views on continuing the war in Iraq forever). I can only hope the man either reconsiders or congress puts an end to it.

Maybe this is the wrong thread....maybe I'll post the same link in two threads since it is so mind boggling to me: (and I'm sure Rizzo will love it -LOL). Keep in mind.....2.7 trillion dollars in crisp new hundred dollar bills would pile up almost 60,000 feet....higher than most aircraft can fly.

2 wars: $1.7 trillion, best case
if that link does not work, try: Book pegs two wars' price tag at $3 trillion - Inside Bay Area
Peace,
D.

[Fennellco]

Originally Posted by Gorillaman

Un Real...
this says, The S will HTF and soon.... it's just a symptom of deeper issues our country has..

Bravo Sierra

I believe where more in the SH TF stage. I'm waiting for a trumpet call and the arival of the four horseman.