DeLauro Highlights Economic Affect of Outsourcing Air Force Tanker Contract

Press Release

Congresswoman Rosa L. DeLauro (CT-3) went to the floor of the U.S. House of Representatives to emphasize the economic impact and the erosion of our nation's skilled workforce that will result if the Government Accountability Office denies the Boeing protest of the Air Force acquisition process for the $35 billion award to replace the aging KC-135 air refueling tankers. The GAO's ruling in the protest is expected this week.

In questioning the Air Force decision, DeLauro has also referenced the significant delays and excessive cost overruns experienced by other defense projects that have been outsourced to foreign countries. The Pentagon has acknowledged that the current Marine One helicopter contract awarded to Lockheed Martin and its British-Italian Partner, AgustaWestland-Finmeccanica, is billions of dollars over budget.

"Mr. Speaker, this week the GAO will rule on the Boeing protest of the Air Force acquisition process for the $35 billion award to replace the KC-135 air refueling tankers that went to the Northrop and a European Consortium team in February.

"Mr. Speaker, the Department of Labor's employment report for May showed a loss of 49,000 jobs, and an unemployment rate that increased to 5.5 percent - the biggest monthly rise since 1986. Yet, this contract will not only continue but accelerate the erosion of our industrial base and skilled workforce. According to an Economic Policy Institute analysis released earlier this month, this decision will ground at least 14,000 U.S. jobs. Roughly half of the parts and labor that go into making Airbus tankers will come from overseas.

"Producing the Airbus KC-45 tanker would support about 14,350 U.S. jobs per year, while Boeing's proposed KC-767 tanker would support at least twice as many jobs - including those for high-skilled workers manufacturing engines in Middletown , Connecticut . Our economy has lost nearly 325,000 jobs since the beginning of the year - we should not be sending more jobs overseas, outsourcing our technological base, we should be creating jobs at home, supporting local innovation, and investing in our economy."

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