Letter to Robert Gates, Defense Secretary

Letter

Today, U.S. Senator Charles E. Schumer wrote a letter to Defense Secretary Gates, touting the benefits of Lockheed Martin participating in the upgrade to the Marine One presidential helicopter fleet. Recent reports show that a Chinese state-run aviation defense company has demonstrated its intention to compete for U.S. defense contracts in general, including this contract to supply Chinese helicopters to upgrade the Marine One fleet used by the President of the United States. Schumer stands opposed to this possible contract, especially because Lockheed Martin is an extraordinarily qualified American defense contractor, that would concurrently keep good-paying jobs in New York.

"When spending American taxpayer money on critical projects like the Marine One fleet, we must do all we can to develop jobs and firms located here, like Lockheed Martin in Owego, for economic growth as well as national security," said Schumer."That is why I urge Secretary Gates not to award potential contracts to China, one of our main global competitors and a persistent currency manipulator, when the same work could be done in first-class American facilities, like Lockheed Martin."

The Pentagon is now under pressure to upgrade essential military hardware, all with a stricter budget. One of its many tasks is the upgrade of the Marine One fleet, which consists of 19 helicopters--11 Sikorsky VH-3Ds that entered service in 1976 and eight smaller Sikorsky VH-60Ns, which were introduced in 1989.

Lockheed Martin, with its Owego facility, and Sikorsky of Connecticut are jointly seeking a bid for this contract. After years of investment, Lockheed Martin seeks to pick up where they left off with the project. Should the Lockheed Martin and Sikorsky partnership be granted the Marine One upgrade contract, many good-paying jobs would be sustained in New York and Connecticut. At the same time, this would avoid rewarding China -- a major global competitor and currency manipulator, which has erected numerous barriers to entry for U.S. firms -- with such a contract.

Lockheed Martin is a global security company that employs about 133,000 people worldwide and is principally engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services. As a global security and information technology company, the majority of Lockheed Martin's business is with the U.S. Department of Defense and the U.S. federal government agencies. Lockheed Martin is the largest provider of IT services, systems integration, and training to the U.S. Government. The remaining portion of Lockheed Martin's business is comprised of international government and some commercial sales of our products, services and platforms. Lockheed Martin is a model corporate citizen that plays a major role in the economy of Owego County and the surrounding region. Lockheed Martin is a major employer with a diverse workforce, and offers a wide variety of opportunities to the residents of the Southern Tier.

An additional concern in light of these recent reports, is that unlike other countries that provide technology to the Department of Defense, China is a strategic competitor to the United States. China is partnered with certain countries in which the United States might need to engage in military operations. Schumer argues that were the US to become reliant on Chinese defense technology during these critical situations, it risks compromising our military readiness in the event China chooses to engage in foreign policy through its procurement contracts.

In his letter to Defense Secretary Gates, Schumer urged that he select Lockheed Martin and Sikorsky's bid for the upgrade of the Marine One fleet, rather than that of a Chinese defense contractor. This is a matter of economic importance for New York and Connecticut, as well as an issue of national security.

Schumer's Letter to Defense Secretary Gates appears below:

February 8, 2011

Dear Secretary Gates:

I write in light of recent reports that a Chinese state run aviation defense company has demonstrated its intention to compete for U.S. defense contracts, possibly including one to supply Chinese helicopters to replace the Marine One fleet used by the President of the United States. These reports are disturbing given that U.S. defense firms are more than capable of producing this equipment, while concurrently keeping jobs here in the United States. For example, Lockheed Martin, a major employer in the Southern Tier region of New York, that is currently seeking to participate in the manufacturing of the new Marine One fleet, offers a wide variety of opportunities to the residents in the region. Allowing a Chinese state run defense company to possibly provide major defense procurement services that could be adequately provided by a U.S. defense company, like Lockheed Martin, would put American workers and particularly workers in the Southern Tier region of New York at a clear disadvantage. Additionally, it is troublesome that China seems confident that is can take advantage of U.S. defense procurement opportunities given the growing national security concerns surrounding China's rising military influence and long-term strategic goals.

As you know, U.S. defense procurement serves to prioritize and strengthen our national security capabilities, while promoting domestic economic viability and innovation. It does not serve U.S. security or economic interest to offshore defense jobs to China when we should being doing everything in our power to keep that expertise here in the United States.

It should also be noted, that unlike other countries that provide technology to the Department of Defense, China is a strategic competitor to the United States that is partnered with certain countries in which the United States might need to engage in military operations. If we become reliant on Chinese technology during these critical situations, we risk compromising our military readiness in the event China chooses to engage in foreign policy through its procurement contracts.

As a member of the United States Senate who values the responsibility of advocating for residents and businesses in the Southern Tier region of New York, I am committed to ensuring that our U.S. based defense firms are given every opportunity to provide the procurement needs of the Department of Defense and we ask that you work aggressively to ensure that American firms and jobs are given priority in the awarding of defense contracts. We look forward to your response.

Sincerely,

Charles E. Schumer
United States Senator

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