It is shaping up to be a heavyweight tag-team wrestling match over the Air Force aerial refuel contract worth over $35 billion. In one corner are Washington Senator Patty Murray (D) and Congressman Norm Dick (D) teamed with Kansas Senator Pat Roberts (R) and Congressman Todd Tiahrt (R)....and California's Congressman Duncan Hunter (R). In the other corner is Mississippi's Thad Cochran (R) and Alabama's Richard Shelby (R)....and President Bush and the United States Senate who have a tendency to oppose restrictions on free trade.
The opponents of the contract want the Air Force to reconsider its selection of Northrop/Grumman and EADS (Airbus) to replace the current KC135 tankers. They are supporting "Buy American" which has a number of provisions which favor Boeing and building the aircraft in Washington and Kansas. They also want to permanently change the Pentagon's purchasing of foreign parts. They are concerned about the health of America's defense industry especially as the economy slows down.
President Bush and free trade advocates fear that changes Murray and Tiahrt are stumping for will trigger foreign governments to limit airplane and parts purchases from the United States. By value, according to Congressional Quarterly's daily newsletter, the Northrop plane would be 42 percent foreign built compared with 15 percent for the Boeing tanker if it is built on the 767 airframe.
Hunter's proposal takes a slightly different approach. Hunter would disqualify foreign suppliers where that country spends less than 2 percent of their GDP on defense. "American taxpayers, who pay an average $1,000 apiece for the defense of the free world, should, as a matter of equity, be allowed to make the systems that they pay for."
The fight is expected to take place during consideration of the 2009 defense appropriations bill.
The Association of Washington Business, Washington's state chamber of commerce and manufacturing and technology association, and more than 30 local chambers of commerce sent letters to President Bush, the Pentagon, Gov Gregoire and members of Washington's Congressional Delegation supporting Boeing's request for its appeal of the contract awarding.
Stay tuned. This is just Round One.
Don C. Brunell, President (DonB@AWB.org)
