Ronald Sugar, Northrop Grumman CEO, Defends Air Force Deal

There were some interesting snippets in the news today regarding the Air Force tanker deal and the CEO of Northrup Grumman. In an audio clip on NTR Ronald Sugar defended the deal that Northrup Grumman and EADS had with the Air Force.

Now, the Air Force itself is being very tight-lipped about everything. Other sources are not. And some other good news came about also that I thought I’d share in a moment. Let me assure you that as far as *I* know, none of this is April Fools or a joke.

Now, I can’t figure out how to place a link directly to the audio, so if you will click on the link for the article I give, you’ll find the audio link right at the top of the page.

From NPR then we have this article:

Northrop Grumman CEO Defends Air Force Deal

Morning Edition, April 1, 2008 · The Air Force awarded one of its largest-ever contracts in February to Northrop Grumman and its European partner, EADS. Then controversy erupted. Now Boeing is trying to get the Government Accountability Office to overturn the contract.

Steve Inskeep talks to Ronald Sugar, Northrop Grumman CEO, about the company’s deal to build a $40 billion next-generation supertanker aircraft.

Sugar says Boeing’s protest that its smaller plane could use more airfields than EADS’ aircraft is an oversimplification. He also says both companies’ aircraft contain “foreign content.”

“There has been tremendous misinformation spread in the media and, frankly, also spread to members of Congress,” he says.

Now, I’d say something like that too if I was him. But you know I’ve checked MY facts here. I’ve used their documentation whenever possible just to be sure. Please listen to the audio, there’s much more information in the clip.

Part of what he had to say was that instead of 2,000 jobs in Alabama like I heard about on the news, there would be an increase in jobs here of 48,000 jobs. That makes a HUGE difference to me. But I need to see that in writing first. And I guess his buddy in Congress, John Murtha, says they didn’t break any laws. Like we expected that? NO, that was NEVER an issue. I’m sure this was all VERY legal.

Questions remain:

1:Why was the contract changed right in the middle of bidding? Did it have anything to do with the fact that the Air Force WANTED EADS bidding?

2:Why did the Air Force choose to buy an aircraft LARGER than originally asked for? Did that have anything to do with what EADS was willing to offer?

Now, Ronald Sugar states that BOTH Northrup Grumman AND Boeing use European parts and that Boeing has been hiding that fact. I’m not sure that is the issue here at all. Boeing has the experience and the plane ready to go. EADS only has this on paper so far.

Ronald Sugar also claims that Northrup Grumman will be using 230 U.S. suppliers and those will be spread out over 49 States. For whatever that is worth, I think it would be wonderful. However, I’d rather have a proven track record of providing our Service men and women with what they need. But that is just MY preference. And I can say that here. It has NO validity though.

I do not have information from Boeing on how many suppliers it will be using or how many States would be involved. Or what parts of the plane are foreign made.

Now, for that other piece of good news I mentioned we have this piece from Reuters:

Lockheed wins $234 mln US Air Force contract
Tue Apr 1, 2008 5:26pm EDT

Market News
WASHINGTON, April 1 (Reuters) – Lockheed Martin Corp (LMT.N:) has won a $234 million contract to provide technical services to support a large U.S. Air Force personnel services initiative, the Pentagon said on Tuesday.

It said the deal was structured as an indefinite delivery/indefinite quantity contract to support the Air Force’s Personnel Service Delivery program. (Reporting by Andrea Shalal-Esa)

I’m not sure just how good that news is, but it sounded good to me! This is a contract we can approve of. I did notice they also develop for other foreign governments too and I have no clue who they are. I would hope that it would not be someone OUR government would have a problem with though.

So, that’s my update for today. I’ll be happy to keep you informed as I learn more. Stay tuned…

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~ by justmytruth on April 2, 2008.

11 Responses to “Ronald Sugar, Northrop Grumman CEO, Defends Air Force Deal”

  1. Hello Northrop Grumman employee,

    I appreciate your comments. And yes, we all understand that parts come from all over the world, however, 28,000 jobs will be made if the tanker is built by Boeing while only 14,000 will be had if Northrop Grumman gets the contract. Combine this with the fact that your company chose to partner with a European Consortium instead of US Boeing and you find there is no sympathy.

    Thanks for commenting again though. Your thoughts are welcome.

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