In February 2008 the Pentagon awarded the contract to build the next generation of aerial refueling tankers to Airbus and Northrop Grumman. At the time, I was standing on the floor of the 767 line with aerospace workers in Everett, who put their heart and soul into making Boeing airplanes. I saw the dismay in their eyes as they learned that their government was going to outsource one of the largest defense contracts in history to the European company Airbus. It was devastating news for American workers, for America’s men and women in uniform, and for our domestic industrial base.
Since then, I have used every tool at my disposal to stop this deeply flawed decision and to fight for a fair and transparent competition for the next generation of tankers. On the Senate floor, in Appropriations Committee hearings, and in multiple conversations and letters to top military and civilian officials, I have fought for a level playing field for American workers when it comes to the tanker competition.
After the 2008 decision, I repeatedly raised the alarm with the Pentagon and with the government about the serious defects in the tanker selection process. I asked how we could outsource our military capabilities to a European company heavily subsidized by foreign governments, as confirmed this year in a final ruling by the World Trade Organization. I questioned why the Air Force had lowballed the costs of the Airbus tanker, by failing to account for the fuel and military construction costs for the larger Airbus plane, and minimized its risks. Unlike the Boeing tanker, which would be built at proven facilities by experienced workers, Airbus planned to assemble its tankers at facilities which hadn’t even been built yet. And I questioned the decision-making which discounted the Boeing tanker even when it significantly outperformed the Airbus tanker in the area of survivability – a measure of how well the aircraft can keep its crew safe.
The Government Accountability Office (GAO), in a blistering ruling responding to Boeing’s protest of the award, proved that I was right about the flawed process. It ruled that the Air Force had significantly overestimated the cost of Boeing’s tanker, misled Boeing, and kept changing the rules of the game during the competition so that Airbus was selected even though the company failed to meet key requirements of the contract. Instead of giving Boeing credit for providing a more capable plane according to the Air Force’s description of what it wanted, it gave Airbus extra credit for offering amenities it did not ask for. After the GAO ruling, I immediately called for the Pentagon to rebid the competition - it was clear that our warfighters, taxpayers, and workers deserved no less than to move past this flawed process.
In September 2008, Defense Secretary Robert Gates announced he would cancel the contract Airbus and restart the process. The Pentagon has pledged to run a fair and transparent competition this time around, and I intend to hold them to their word.
With that said, I remain very concerned about the levelness of the playing field. On March 23, 2010, the World Trade Organization (WTO) ruled that Airbus has for years received illegal, trade-distorting subsidies that have hurt U.S. aerospace companies and undercut American workers. In spite of this, Airbus secured a sixty-day extension of the bid deadline to prepare a solo bid after their American partner Northrop Grumman dropped out – holding up an already long-delayed competition to allow an illegally-subsidized foreign company to bid. This means the Pentagon is bending over backwards to include a company that has broken the rules of fair play. I continue to make it clear to the Obama Administration that I do not believe that it is in the interest of the warfighter, the American worker, or the American taxpayer to award this contract to an illegally subsidized foreign competitor.
I am confident that on an even playing field Boeing and America’s aerospace workers will prevail in the tanker competition. Our workers have a strong tradition of building tankers for the Air Force and they are ready today to do it again. They have the skills, the know-how, and the proven technology to deliver the best aircraft for our warfighters, our taxpayers, and our country.