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03.11.2008 6:41 am

Could Boeing’s loss be McCain’s as well?

St. Louis Post-Dispatch
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Will Boeing’s loss of a major government contract hurt John McCain in Missouri?

The aerospace firm - and its St. Louis based defense-unit - took an enormous hit last week when the Pentagon announced that Boeing, despite being the favorite, had lost a $40 billion bid to supply the Air Force with fueling vessels.

Instead, the contract went to a European company, EADS - known for its Airbus line of jets - and a U.S. partner, Northrop Grumman.

So what’s that go to do with the GOP nominee for president?

Five years ago, Boeing had a $23.5 billion deal in place to lease the fuel tankers - planes that can gas-up other planes in midair - to the military. 

McCain - who was in town for a fundraiser on Monday - questioned the proposal. He led criticism that it would actually cost more to lease the tankers than own them outright.

That helped expose a far more stinging scandal for Boeing: That the firm offered a Air Force procurement office, Darleen Druyun, future employment while she inflated the price of the tanker contract.

Both Druyun and the Boeing executive that offered her the job, St. Louisan Michael M. Sears, admited to federal corruption charges.

McCain, since early on in the campaign, has trumpeted his involvement in exposing the Boeing lease plan, claiming that he saved taxpayers billions.

But now that the contract has been re-bid several years later, many of those jobs that would have gone to Boeing will now go overseas to EADS. And that could quickly become a liability for McCain in St. Louis and other cities with Boeing facilities.

Here’s what AP writer Matthew Daly wrote in a recent analysis:

McCain has run ads touting his role in fighting “pork” such as the tanker project and cited the deal in a recent GOP debate.

“I saved the taxpayers $6 billion in a bogus tanker deal,” he said.

House Speaker Nancy Pelosi, D-Calif., echoing the thoughts of many congressional Democrats, sees McCain’s role in a less positive light. She said the earlier tanker deal was “on course for Boeing” before McCain started railing against it.

“I mean, the thought was that it would be a domestic supplier for it,” Pelosi told reporters. “Senator McCain intervened, and now we have a situation where the contract may be - this work may be outsourced.”

Even Boeing’s Republican supporters are critical of McCain.

“John McCain will be the nominee and I will support him, but if John McCain believes that Airbus or EADS is the company for our Air Force tanker program he’s flat-out wrong - and I’ll tell him that to his face,” said Rep. Dave Reichert, R-Wash.

Missouri’s senior senator, Kit Bond, has entered the fray, writing a letter last week to a Air National Guard, questioning the process behind awarding the air-tanker contract.

But Bond has not, publicly at least, joined the crowd upset with McCain.

McCain in Frontenac

McCain in Frontenac on Monday

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22 comments

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This is such a stretch, you lefties need to take care you don’t tear a ligament. McCain blew the whistle on a clear rip-off. Now, Boeing lost a competitive bid. But somehow, it’s McCain’s fault. Of course, if they had gone forward with the deal, you’d blame the corrupt, free-spending Bush administration.

— Nick Kasoff
7:38 am March 11th, 2008

To let the military brass move that contract with all of its jobs and money for the most part overseas borders on unforgiveable…..and the military brass wonders why some people are unsupportive? I’m sure this blunder will win it a lot of support (insert eye roll).

This could cost McCain a handful of votes here in Missouri. In a “toss up” state like Missouri, a handful here and there could mean the difference between winning or losing the state.

— Robb(I)
8:23 am March 11th, 2008

Perhaps more than a handful, Robb. Is anyone at Boeing-St. Louis happy with McCain over this situation? McCain’s problem is that he appears to have gone out of his way to ensure a competition in a situation in which no domestic competitor existed. And it doesn’t help McCain that some of his most preeminent staffers were lobbyists for EADS earlier on. Characteristic of a senator culpable to the hilt in the Keating Five scandal (which also cost taxpayers billions of dollars, by the way).

The protest should be interesting. Jim Albaugh did seem legitimately baffled by all the bigger-is-better talk in the wake of the award to EADS. As am I: How difficult runways and fuel conservation ceased to be an issue for the USAF is itself an issue.

— weezee
8:39 am March 11th, 2008

McCain also restructured how contracts were awarded but I don’t know the details. Maybe the PD could report, but it did indirectly hurt Boeing. Plus, Boeing is behind on their new airplane and border security system.

— A CENTRIST
8:41 am March 11th, 2008

First, what happened to the rules that you can’t use a real person’s name. Yes, #2, that’s you.

— suzyjax
8:58 am March 11th, 2008

Nick, it is more than exposing past bad deeds that have folks upset with McCain.
He is stating that it is better to give a DEFENSE contract to a foreign vendor, who might be a little cheaper, than to go with the home team. Tha’t s not such a stretch to the thousands of folks in St Louis who work in that industry!

McCain stated yesterday that contracts should always default to the lowest bidder. While I wouldn’t want falsely inflated bids, I would think that the money McCain touts to save is really a net loss when you consider lost tax revenues from lost jobs.

In addition, this is a defense contract. Why would we want our end products being manufactured outside the US? Really, if the government can’t even “buy American” we might as well give up!

defense matters going with

— suzyjax
9:01 am March 11th, 2008

I thought you right-wingers hated the French? How could you support such a contract/deal? *smile*

— suzyjax
9:03 am March 11th, 2008

As I understood it, this contract was let on three different occasions in order to GET competition, after Boeing was the ONLY bidder twice. (someone please correct me if I’m mistaken)

If I were a Boeing executive, I’d be pissed, too — and I understand they’re filing a protest, through the proper channels, over this particular project and how it was awarded.

And I hope they prevail!

— Jim (the republican)
9:11 am March 11th, 2008

Jo is sleeping in today. Michelle Obama is allowed to tell someone to kiss off on here but I can’t say carp.

— Amazedbythelunacy
9:53 am March 11th, 2008

Your comment was deleted for saying crap?? That’s NOTHING compared to some of the language used in some of the other PD blogs!!

Wow! Talk about inconsistency!

— Jim (the republican)
10:33 am March 11th, 2008

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