McCain hit on tanker deal
Democrats jumped on a report today by congressional investigators that recommended reopening a $35 billion Air Force tanker contract pushed by Republican presidential candidate John McCain.
The Government Accountability Office says it found "a number of significant errors" in the process that led to a joint bid by Northrop Grumman Corp., and Airbus beating Boeing's bid earlier this year.
McCain had helped block a contract with Boeing in 2004 and pressed the Pentagon in 2006 to change bidding rules opposed by Northrop Grumman and Airbus.
"Now that the GAO has found that the tanker deal was not the 'open' and 'transparent' process he claimed to be seeking, Senator McCain has a responsibility to stand up for America's working families and insist the Air Force reopen the bidding on this tanker," Democratic National Committee communications director Karen Finney said in a statement. "After siding with his lobbyist friends in helping steer tens of thousands of manufacturing jobs overseas the last time around, Senator McCain has an opportunity to do the right thing now. Given his history of promoting policies that outsource American jobs, we're not holding our breath."
McCain told reporters in Missouri that he's "still proud that the first time around I saved the taxpayers $6.2 billion," and called the report "unfortunate for the taxpayers."
He later elaborated in a statement issued by his campaign: "My paramount concern on the tanker replacement program has always been that the Air Force buy the most capable aerial refueling tankers at the most reasonable cost. Everyone agrees that this can only happen under fair and open competition. The GAO’s finding that the Air Force did not fairly apply its own rules in making its original award decision must be taken very seriously. As I have under similar circumstances, I now urge the Air Force to carefully consider the GAO’s decision and implement its recommendations as quickly as, and to the fullest extent, possible.”
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Yes, John McCain does have a point about the original USAF 767 Tanker Lease Deal (2001-2005), only Boeing would have benefitted. But the USAF did approve the deal to lease 100 "KC-767" for 10 years for upwards of $20 billion. Anyone look at that had to know it was a bad deal. You could buy a 767 for about $125 million but the USAF wanted to "lease-to-buy" them for $200 million each. As a taxpayer, I'm happy that the lease deal died.
Now, John McCain says that the GAO report is "unfortunate for the taxpayers." I wonder why he thinks this? The USAF admitted that they made errors in calculating the cost of the KC-X selection and the GAO report says the same. The USAF added billions of dollars in cost to the Boeing bid while accepting the NG estimate. The USAF failed to account for the additional construction cost that the larger A330 would require or to accurately compute the life cycle cost (the flying and fixing cost) of the two bids. The goal of any government purchase should be to ensure that the American People (the taxpayers) receive the best equipment at the best price. The USAF chose the untested, unproven and more expensive option during the KC-X selection. The GAO decision now forces the USAF to made some tough decisions. They can ignore the GAO report, unlikely because Congress would kill the KC-X funding, re-do the selection process or re-do the entire bidding process.