Opinions on Tanker Jet Award

[raymr]

The airforce has just given a 50-year multi-billion dollar contract to Grumman and EADS to provide a new generation of refueling tankers. As you know EADS is a European consortium that builds the Airbus. This means the loss of a few more thousand American jobs, as the airframe and other components will be sourced overseas.

Some might say this increases international cooperation and supports our allies. I see it as a further hollowing out of our industrial base. I find it hard to believe we can't build competitive aircraft to support our own military.

Apparently John McCain helped to push things in this direction.

Link.

[Botnst]

NATO. IF we are going to be a part of it then this is a part of the price we pay for the benefits it provides.

[Jordan G]

I heard that on NPR the other day and I was hoping it would show up here.

IIRC, the senator from Alabama thought it was a good thing - created a bunch of jobs there for assembling the overseas parts here in the US. Obviously the senator that backs Boeing's plant disagrees. Not sure myself.

[t walgamuth]

Does France buy some stuff from us?

Tom W

[Medmech]

Sole-sourcing the deal to Boeing was not an option after two former executives of the company -- including the former top Air Force official that helped to craft the $30 billion lease while working for the government -- were found guilty of conducting illegal job negotiations. They both wound up serving jail sentences, and the scandal prompted Sen. John McCain (R-Ariz.), the current ranking Republican on the Senate Armed Services Committee, and former SASC Chairman John Warner (Va.) to push for a competition to reduce the price and improve the design.

I think that says everything.

[raymr]

Originally Posted by Howitzer

I think that says everything.

So you punish the two people involved, not castigate an entire industry.

[Medmech]

Originally Posted by raymr

So you punish the two people involved, not castigate an entire industry.

Personally, I think the contracts should stay in the US especially with the current economic conditions, the only strong manufacturing sector we have is defense but I guess that is the way the square ball skids. Theoretically I am an isolationist but that darned free market always gets in the way.

[Medmech]

LOS ANGELES - March 5, 2008 - When the process to replace America's aging fleet of KC-135 aerial refueling tankers began in 2005, the U.S. Air Force made clear that it wanted a full and fair competition. Northrop Grumman Corporation (NYSE:NOC) entered the competition with the understanding that if its proposal provided the best value to the warfighter and the American taxpayer, it could win the contract.

Since the Air Force's decision to award Northrop Grumman the KC-45A contract was announced, numerous erroneous comments have been repeated in the media and in Congress. In response, the company wants to make the following points clear:
Industrial Base * The Northrop Grumman KC-45A tanker program will create a new aerospace manufacturing corridor in the southeastern United States. * The KC-45A program helps return competitiveness to the U.S. aerospace industry. Jobs * The Northrop Grumman KC-45A tanker program does not transfer any jobs from the United States to France or any other foreign country. * The KC-45A tanker will support more than 25,000 jobs in the United States. * The KC-45A U.S. supplier base will include 230 companies in 49 states. * Assembly and militarization of the KC-45A tanker will take place in Mobile, Ala., resulting in the creation of approximately 2,000 direct jobs in the United States. Acquisition Process * The KC-45A competition underwent the most rigorous, transparent acquisition process in U.S. Department of Defense history. * Throughout the process, both competitors in the KC-45A acquisition hailed the Air Force for conducting a fair and open competition. Foreign Content * All modern jetliners are built from a global supplier base and the two entrants in the KC-45A competition are no exception. The Boeing tanker includes parts manufactured in Japan, United Kingdom, Canada and Italy. The Northrop Grumman tanker includes parts built in the United Kingdom, Germany, Spain and France. * The Northrop Grumman KC-45A will include approximately 60 percent U.S. content. It is America's tanker. Foreign Suppliers to U.S. Military Programs * There are numerous examples of transatlantic cooperation on vital U.S. military programs. Foreign suppliers currently play essential roles in the F-35 Joint Strike Fighter and the VH-71 Presidential Helicopter. In fact, on the C-27J Joint Cargo Aircraft program, Boeing is responsible for producing the Alenia Aeronautica (Italy) aircraft in Jacksonville, Fla. * No sensitive military technology will be exported to Europe. For the KC-45A program, a commercial A330 jetliner will be assembled by American workers in EADS's facility in Mobile. The aircraft will then undergo military conversion in an adjacent Northrop Grumman facility. All of the KC-45A's critical military technology will be added by an American company, Northrop Grumman, in America, in Mobile Ala.Northrop Grumman Corporation is a $32 billion global defense and technology company whose 120,000 employees provide innovative systems, products and solutions in information and services, electronics, aerospace and shipbuilding to government and commercial customers worldwide.

http://www.irconnect.com/noc/press/pages/news_releases.html?d=137644

[Honus]

Originally Posted by raymr

So you punish the two people involved, not castigate an entire industry.

I don't see it as castigating an entire industry. It looks more like an effort to foster competition. Maybe Boeing was getting too big for its britches.

[PaulC]

Originally Posted by t walgamuth

Does France buy some stuff from us?

Tom W

Deodorant and California wine.

[MS Fowler]

Originally Posted by Howitzer

Personally, I think the contracts should stay in the US especially with the current economic conditions, the only strong manufacturing sector we have is defense but I guess that is the way the square ball skids. Theoretically I am an isolationist but that darned free market always gets in the way.

My first reaction was to agree with you,...but
In a world economy what would be the repercussions of the US locking Airbus out of the process? Would not reasonable people expect that other countries might retaliate and lock out US companies from their bidding processes?
On the other hand how many contracts would it take to equal the value of this one? Would we better off if we persued our own (US) interests and let the rest of the world fend for themselves?

[Medmech]

Originally Posted by MS Fowler

My first reaction was to agree with you,...but
In a world economy what would be the repercussions of the US locking Airbus out of the process? Would not reasonable people expect that other countries might retaliate and lock out US companies from their bidding processes?
On the other hand how many contracts would it take to equal the value of this one? Would we better off if we persued our own (US) interests and let the rest of the world fend for themselves?

We're on the same page, my idea of an ideal situation will not always work.

edit:
Just for security alone I don't think that outsourcing military hardware is not a good idea even if the are allies, when we outsource we inherit the suppliers labor laws so if there is a massive strike or some other problem that is out of our control were screwed.

[SwampYankee]

This is all over the CT news since the engines would have been built by Pratt and the electronic controls by Hamilton Sundstrand. It's kind of a strange dichotomy here with almost complete Democratic control yet still heavily dependent on the defense industry for jobs. When Rob Simmons (R) lost his seat last election cycle any military connections were lost and the contracts shifted elsewhere, maybe coincidental maybe not. Sikorsky lost out on the Marine One contract to Lockheed and it's slipped away ever since.

[Hatterasguy]

Sikorsky really did a lot better during the cold war, everyone seemed to work there.

I miss the good old cold war, it was good for CT created lots of jobs.

[Medmech]

Originally Posted by Hatterasguy

Sikorsky really did a lot better during the cold war, everyone seemed to work there.

I miss the good old cold war, it was good for CT created lots of jobs.

The 90's were a short intermission its getting back to business.