Tanker Truths

22 Apr 2008
Rep. Tiahrt Issues Misstatements on CNBC
Representative Todd Tiahrt is once again misrepresenting the facts surrounding Northrop Grumman's win of an Air Force contract to build America's next generation of aerial refueling tankers.

In an appearance this morning on CNBC's "Squawk Box," Boeing backer Tiahrt - who has said he wants Congress to intervene to take the contract away from Northrop Grumman - made a series of misstatements about the contract similar to ones he's made in the past.

In particular, he alleged that the Air Force changed what it wanted in a way that favored Northrop Grumman over losing bidder Boeing, said that EADS, Northrop Grumman's Europe-based subcontractor, received illegal subsidies, that our national security is being outsourced to foreign countries, and that restrictions on doing business with companies that have violated the Foreign Corrupt Practices Act (FCPA) and the International Traffic in Arms Regulations (ITAR) were waived.

In fact, Air Force officials have said their bidding process was fair, open and transparent - a viewpoint shared by Boeing itself while the bidding process was going on. Boeing never protested the contracting standards until Northrop Grumman won the contract fair and square.

As for the baseless allegation that EADS received illegal subsidies that allowed the Northrop Grumman team to submit a cheaper bid, the fact is that EADS received NO government subsidies. EADS did receive loans, all of which were repaid, with interest, last year, and all of which always have been fully disclosed on EADS' public financial records.

What's more, NO national security is being outsourced as a result of this contract. All sensitive military technology will be installed entirely by qualified Defense Department personnel and Northrop Grumman employees with appropriate security clearances at Northrop Grumman's secure facility that will be built in Mobile, Alabama.

The fact is, no waivers were granted to EADS from complying with the FCPA and ITAR. Representative Tiahrt's claims are entirely baseless.

As for Tiahrt's allegation that the Air Force bid was "weighted heavily" in favor of Northrop Grumman, John Young, the Pentagon's top acquisitions official, said Monday that the Air Force bid the contract in a fair and open way.

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