Northrop Tanker Deal Will Cost U.S. Taxpayers (extra) Billions

[Omaha Steve]

Source: AFL-CIO News Blog

by Tula Connell, Jun 9, 2008

Remember that $35 billion air fleet tanker contract—the one the U.S. Department of Defense gave to European-based firm EADS, which makes the Airbus, rather than to U.S.-based Boeing? Looks like 44,000 jobs and the expanded purchasing power those jobs would have created in more than 40 states aren’t the nation’s only losses in the Bush administration’s decision to award the contract to an overseas bidder.

A new report compiled by the International Federation of Professional and Technical Engineers (IFPTE) highlights the corrupt bid-awarding process involved and found the EADS fleet will cost taxpayers money and is likely less safe than the Boeing model. In fact, IFPTE, which represents 85,000 white-collar engineers and technical employees across the nation, found the Boeing model could save taxpayers $90 billion over the program’s lifetime.



Here are a few of the report’s findings:

* The contract to EADS could cost U.S. taxpayers as much as $30 billion in unneeded costs.

* Known as the KC-30, the aircraft EADS is less capable, can land in fewer bases and is more vulnerable to being downed by enemy fire.

* The KC-30 is being financed with illegal subsidies, according to a near-unanimous consensus of legal experts in the United States and leaders of both political parties.

* The Defense Department made questionable midstream changes in the procurement criteria that it has not explained to Congress to date.

* EADS won exemptions from key national security laws, including those that restrict the export of sensitive military technologies developed with U.S. funds.

* EADS has very questionable relationships with Iran, Russia and others that should be of concern to policymakers tasked with protecting our national security.

Compared with the model EADS would build, the Boeing version produces 25 percent less carbon dioxide-reducing greenhouse gases and offers a 24 percent fuel savings—costs borne by taxpayers.


Read more: http://blog.aflcio.org/2008/06/09/northrop-tanker-deal-will-cost-us-taxpayers-billions

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New report online here: http://www.ifpte.org./Downloads/Archives/Misc/TankerWhitePaper_final.pdf

[appal_jack]

1. I am by no means a military hardware expert...

I am by no means a military hardware expert, but I will K&R nonetheless, because, if this report is true, then we taxpayers are getting shafted front and back on this deal.

-app

[cloudbase]

2. I'm no expert, either,

but that subsidy argument doesn't wash, because Boeing is rather heavily subsidized. I guess it's "legal" if we do it, though.

[happygoluckytoyou]

3. did somebody say McCain....

McCain Lobbyist Ties Questioned in Ad, Complaint
June 08, 2008 3:22 PM

ABC News' Rick Klein Reports: A watchdog group is launching an advertising campaign and filing an FEC complaint questioning the McCain campaign's ties to lobbyists, as Sen. John McCain and Sen. Barack Obama spar over each other's ties to special interests.

The TV ad from Campaign Money Watch, set to run on Washington, D.C., broadcast and cable outlets starting Monday, focuses on McCain's role in the awarding of an Air Force contract that would eventually go to the French company Airbus instead of the American company Boeing.

"Seven of McCain’s staff and fundraisers lobbied for Airbus," the ad says. "And guess what? John McCain intervened, which helped Airbus get that Pentagon contract. Tell John McCain to kick those lobbyists off the Straight Talk Express."

GO MCCAIN GO MCCAIN and just keep going until you are GONE !!!!!!!

[Plucketeer]

4. Details be DAMNED!!!

It's a kick in the teeth to American workers, American plane builders and American taxpayers when we go overseas for our military aircraft!

[happygoluckytoyou]

5. so if you know anyone at BOEING... you know... one of those GOP redneck factory workers....

send him this note... remind him to thank JOHN "THE BUSH REPUBLICAN" MCCAIN....
remind him to vote in November

because of expected turnout.... democrats will be voting november 4th.... republicans on november 5th

[liam_laddie]

6. Please read this wiki article before

making unfounded judgments about costs. <http://en.wikipedia.org/wiki/KC-45>
Much of the budget WILL be spent in the USA on US labor and components, including engines, electronics, many sub-systems; the major assembly will be done in a new plant in Alabama...do I hear the drawl of "Suth'n Senatuhs? The jobs numbers posted by both Northrup/Grumman/EADS and Boeing are suspect, anyway. Look into how much of Boeing's long-delayed 787 is manufactured off-shore. It's sorta bolted/bonded together here from parts and sub-assemblies from all over the world. A lot of whining, IMHO.

[Tommy_J]

7. Thanks for pointing that out

Boeing has outsourced so many sub assemblies that their aircraft isn't really a domestic product either.

[Trajan]

10. I have watched GREAT jobs in the Northeast and West ....

GREAT high paying Union jobs ....

Slowly disappear into the south, where they are paid half the wage, with no union, no pensions, and no job security ....

Alabama and the rest of the south, being lead by conservative politicians, has drawn work from high wage states ..... How is this beneficial ?

I suppose it is good for the unemployed in that region, but nothing was those citizens from coming up and finding work in a high wage state, which many did ....

Moving that work to Alabama did no favors for the general wage climate in our whole country ....

[Sen. Walter Sobchak]

8. Boo Hoo

Boeing should have been banned from the competition, it is time for some corporate capital punishment. If Boeing won the contract the message to corporate america would have been very clear - it is okay to defraud the federal government - just have some assholes ready to throw under the bus.

[Trajan]

9. Boeing hires MANY Average Joes who are unionized ...

And make GOOD pay, with GREAT benefits ...

That includes the engineers and technicians who are SPEEA ....

It ISN'T OK to defraud the government, but it would be a damned shame for workers to lose their standing because the corporate Numbskulls screwed up ....

[Sen. Walter Sobchak]

11. So did Enron

Fraud is fraud and it must be punished, should the rape of my state been allowed to continue in the name of saving the jobs of Enron employees?

Sorry, shut the assholes down and throw their directors in jail.

[Trajan]

12. Boeing at no time behaved like Enron, nor has it ripped off their employees in ANY WAY like Enron ..

This assertion is a false analogy .... It is fallacious ....

I greatly doubt many Enron employees were unionized ....

In any case: the transgressions of Boeing are NOT sufficient reason to toss tens of thousands of families into the soup line ....

This is nonsense ....

Maybe those who live in Texas do not recognize a tradition of unions or jobs with decent wages .... It is something you may not be used to ....

[Sen. Walter Sobchak]

15. The Boeing transgressions are more than enough reason

Boeings performance on the Japanese and Italian 767 Tanker contracts alone would be an adaquate reason to reject Boeing. The superior performance of the Airbus based tanker alone is reason enough to reject Boeing. But when you put those together with the attempted massive $30 Billion fraud how can anybody seriously question the result?

In how many other situations would a vendor who attempted to defraud their customer for THIRTY BILLION DOLLARS even be considered for the contract?

Corporations should NEVER be rewarded for fraud and Boeing conspired to defraud the federal government on an unprecidented scale - that can NEVER be rewarded.

And Enron through their mergers with Portland General and other constituant businesses had unions.

I am sorry if it is harsh, but corporations have to suffer for their crimes and that will impact their employees - why aren't Boeing employees demanding answers as to how their executives came to participate in a criminal conspircy and how they turned a sure thing into a loss?

Do you think giving Boeing a stern talking to and the tanker contract would have a deterrent against future criminal conduct?

Or might the $35 Billion Dollar spanking be more effective?

I will never excuse corporate crime in the name of the "saving jobs" strawman.

[Psephos]

13. To all those condemning the Airbus deal - mind telling us what kind of car you drive?

I expect to hear from those who drive UAW-assembled cars. I expect to hear crickets from those who don't.

The number of false progressives who not only refuse to consider a US-made car, but also go out of their way to slam them and poison the market for others, blows me away on every DU thread that mentions cars made in the US.

[Zachstar]

14. So many people here with a lack of education about military hardware.

This tanker is a great design. Its amazing to see people sticking up for Boeing after the crap they have done in the past.

[Supersedeas]

16. Gates was at the AF Academy to smooth over this and the firing of AF leadership