Local paper touts defense industry as a way to cushion downturn in US economy

October 20, 2008 by Dagpotter · Comment
Filed under: BAE Systems, Congress, Federal Budget Process, logistics, production program 

The Scranton Times-Tribune has an article discussing how the recent issues with the US economy will have less effect in their area due to the many defense contractors. They mostly support Tobyhanna Army Depot and provide services and products to the Army. The article discusses in detail the BAE expansion in the area where they make armor and gear for soldiers. BAE acquired the US company Armor Holdings last year and the plant is part of that acquisition. While the majority of these contracts are for things the US military needs, it is another example of the Defense budget being used by Congress as job programs. Members of Congress brag about how many dollars they bring back to their districts; and how their re-election is critical to maintain this type of work.

See the article for more.

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DCAA friendly reminder

May 26, 2008 by Dagpotter · Comment
Filed under: Congress, Contract Awards, Federal Budget Process, Industry Analysis 

The DCAA sent a memo out to remind contractors that the cost of lobbying members of Congress to get earmarks cannot be billed to the government. See the article here. I don’t know if this is something that is done regularly by the Defense Contract Audit Agency, or perhaps they found something in one of their audits, but it should be known to the defense industry. Read more

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Democrats plan to interfere with KC-45

May 1, 2008 by Dagpotter · Comment
Filed under: Boeing, Congress, Contract Awards, EADS, Federal Budget Process, GAO, Northrop Grumman Corp., Protest, U.S. Air Force, commercial aviation, logistics 

In this story it is clear that the Democratic members of Congress will interfere with the KC-45 award, no matter what the GAO says. The House is moving to defund the program if the GAO opens up the contract. Mr. Murtha misspoke when he said that the GAO would overturn the award. They cannot do that, just direct, as with the CSAR-X award, that the source selection be reopened. It is also clear that members from states that Boeing is in will move to conduct an investigation no matter what that will delay the program. It is also interesting that they are now blaming John McCain, the Republican presidential candidate, for throwing out the lease with Boeing. They weren’t supporting Boeing when their executives and USAF acquisition people were going to jail over the deal. As previously reported any attempt by Congress to muddle up the deal purely on political and nativist grounds will only make it difficult in the future to get competition on other contracts.

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Boeing sort of pushing CIA brief on EADS bribery

April 15, 2008 by Dagpotter · Comment
Filed under: Boeing, Contract Awards, EADS, Federal Budget Process, GAO, Northrop Grumman Corp., Protest, U.S. Air Force, commercial aviation, development program, logistics 

According to The Hill Boeing is using its lobbyists to push Members of Congress to receive a briefing from the CIA on “foreign companies” using questionable means in their attempts to win contracts. See the article here. Of note the only two Congressman to talk on the record about this were Tiahart from Kansas, a vocal opponent of the deal and a former Boeing employee and Dicks from Washington. Both have been very supportive of Boeing in their attempt to throw out the KC-45 award to Northrop Grumman and EADS. Obviously Northrop Grumman is upset that Boeing would be stooping to this. The protest result will be announced in early June by the GAO. Congress cannot do anything but de-fund the program, something they are hesitant to do as it is important to the modernization of the Air Force.

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