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At a time when federal policies should be strengthening our economic and national security, the decision by the Department of
Defense to award a $40 billion to $100 billion contract for the construction of Air Force refueling tankers to the European firm Airbus undermines both these crucial concerns.
The Defense Department accounts for the single largest portion of the federal budget. These
expenditures are supposed to comply with the Buy American provisions of the Defense authorization bills, and should under no circumstances contribute to
offshoring American jobs--especially to firms that are heavily subsidized by their governments.
Awarding the Air Force refueling tanker contract to Airbus is an especially egregious violation of these
principles because it will lead to the loss of, and failure to create, tens of thousands of jobs over the next two decades. Adding insult to injury, this contract is being
awarded at a time when the U.S. government has filed a case with the World Trade Organization (WTO) charging unfair trade practices resulting from Airbus’s illegal subsidies.
This decision by the Defense Department will have a deep, damaging and enduring impact
on the aerospace industry and supporting industries, such as aluminum, glass, rubber and advanced materials and electronics--among many others.
These violations of fair trade and procurement policies erode the industrial base that
constitutes a crucial component of America’s defenses.
The current administration has granted more waivers of the Buy American provisions than
any administration in our history.
Congress must do its job and exercise closer oversight of the relations between the
Defense Department and foreign contractors. In particular, we call on Congress to do the following:
- Exercise its constitutional authority to conduct a complete review of the nation’s procurement policies, including any and all waivers granted by the Bush administration to date;
- Conduct a full investigation of the circumstances surrounding the awarding of the tanker contract to a foreign contractor;
- Conduct additional hearings on the scope, nature, and quantity of the waivers granted by the Administration, as well as the impact of the waivers on the
readiness of U.S. defense capabilities and national security; and
- Most important, defund the award of the Air Force's contract to EADS/Northrop.
Furthermore, we call on the presidential candidates of both parties to condemn these waivers and
the award of this contract to Airbus.
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