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American Weapons Manufacturer Taking U.S. Government to Court for Bid Disqualification

In November I reported on American company Hawker Beechcraft being inexplicably disqualified from bidding on a weapons contract that appears ready to go to a Brazilian company named Embraer, which has questionable ties to America’s enemies.

Embraer, a Brazilian aerospace giant which is currently under investigation for potentially making illegal payments to obtain government contracts, is essentially owned by the Brazilian government. Through their “Golden Share,” Brazil essentially has control over the company’s business operations.

According to Embraer’s website, that Golden Share provision empowers the Brazilian government with veto rights over: “Creation and/or alteration of military programs, whether or not involving the Federative Republic of Brazil;” “Development of third parties´ skills in technology for military programs;” and “Interruption of the supply of maintenance and replacement parts for military aircraft,” among other things.

But Brazil has their own explaining to do regarding their long and sordid history with the rogue country of Iran.

According to the Council on Hemispheric Affairs, “In 1989, Brazil chose to sell Tucanos, Embraer’s relatively low cost and basic military aircraft, to Iran.” Currently, the Islamic Revolutionary Guard Corps Air Force operates around 40 Embraer T-27 Tucanos, according to the Washington Institute. In fact, the Iranians use the Tucano as their primary close air support aircraft.

In recent years, Brazil has continued its troubling friendship with Iran and ruthless leader Mahmoud Ahmadinejad. The Hudson Institute notes that, “Another area of tension between Brazil and the United States relates to Iran. In November 2009, President da Silva invited Iranian President Mahmoud Ahmadinejad to Brazil. In May 2010, da Silva helped broker a deal in which Iran would ship only a portion of its low-enriched uranium to Turkey for reprocessing; the rest would remain in Iranian hands, where it could be further enriched for nuclear weapon production.”

After I wrote the article, most of the pushback I received was related to whether or not the Brazilian aircraft was superior and therefore deserved the contract.  This painfully misses the point which thankfully, the U.S. government is conveniently highlighting for me.

The point of my original article, which I apparently didn’t make obvious enough, was that Embraer didn’t “win” the contract.  Hawker Beechcraft was disqualified from bidding further without explanation.  The question I had and still have, is why? Thus far responses to all inquiries have been met with the transparency we’ve come to expect from this administration: complete silence, further highlighting the reason to continue asking the question.

Not surprisingly, Hawker seems to feel the same way.

Hawker Beechcraft, which has been excluded by the U.S. Air Force from competing for a contract to supply a new light attack aircraft, is fighting mad and fighting back.

The Wichita-based manufacturer of business jets and turboprops filed suit yesterday with the Court of Federal Claims following notification that the Government Accountability Office (GAO) declined to review its protest of the Air Force decision, which was made public in November.

Hawker goes on to make the case for their product which may or may not be better than the competition.  And perhaps they do have a superior product which would of course raise further questions, but, as is the case with me, some are more curious as to the bidding process that government has mysteriously employed in this situation.

The Taxpayers Protection Alliance is one such group:

The Taxpayers Protection Alliance applauds and supports American aircraft manufacturer Hawker Beechcraft’s federal suit in response to the recent series of outrageous and perplexing actions of awarding the Light Air Support and Light Attack and Armed Reconnaissance (LAS/LAAR) aircraft to the Brazilian company Embraer. By doing this, the Administration will be shipping jobs overseas, and putting a critical defense project in the hands of a hostile, foreign government. This is all at the expense of American taxpayers.

In the contract bid to support the military’s LAS/LAAR aircraft program, our organization has already voiced its support for Hawker Beechcraft over Brazil’s Embraer to Defense Secretary Leon Panetta in two separate letters here and here because of its ability to protect taxpayers and the country.

The abrupt disqualification of Hawker Beechcraft will lead to the awarding of the contract – and the ensuing revenue to American taxpayers – to a foreign company currently under investigation by the Securities and Exchange Commission for possible violation of the U.S. Foreign Corrupt Practices Act, which prohibits companies from bribing foreign government officials or making other illegal payments to obtain or retain business.

The Administration’s awarding of this contract to Embraer would send billions of dollars in taxpayer dollars to Brazil that would otherwise stay in the United States. Hawker Beechcraft is right to file suit with the Court of Federal Claims to help ensure this Administration keeps defense contracting and production on American soil, where they belong.

As is Congressman Tim Huelskamp of Kansas:

(DODGE CITY, KAN.) – Kansas Congressman Tim Huelskamp released the following statement in support of Hawker Beechcraft after it was announced that the company had filed suit following its disqualification from competition for an Air Force Light Air Support (LAS) contract. As a result of the disqualification, the only remaining bidder is believed to be Embraer, a Brazilian company. Hawker Beechcraft had protested the disqualification by requesting a review by the Government Accountability Office, but the review was denied. Hawker Beechcraft has fulfilled similar U.S. Navy and U.S. Air Force contracts for T-6A/B trainer aircraft since 1996. The contracts have been fulfilled in part at the company’s Wichita, Kansas facility.

“It is simply wrong for the Obama Administration to hire a Brazilian company to handle national security when we have a qualified and competent American company that can do the job,” Congressman Huelskamp said. “With millions of Americans out of work, it makes no sense to award the work to a foreign company. Along with my colleagues in the Kansas delegation, I will continue to attempt to right this wrong in order to preserve America’s national and economic security interests.”

According to data provided by Hawker Beechcraft, the AT-6 project supports 1,400 American jobs at 181 companies in 39 states. Additionally, the company has invested more than $100 million in order to meet the Air Force’s requirements for competition.

But as I said, it’s the government that’s really making the case that there is something to investigate here.  No answer is forthcoming when asked why they would disqualify a long time vendor of the U.S. military who happens to be an American company making a potentially superior product which would create 1,400 U.S. jobs.

I’m sure they have a great reason.

Cross-Posted at BenHoweShow.com

COMMENTS

  • snowshooze

    The only exceptions are for when a US product IS NOT AVAILABLE. Even, if the product is not superior, Domestic is the standard for all Federal work.
    Nice find Ben.

    • metairiemike

      As much as I hate to support any decision made during the obama administration, this is a good choice for the mission (counter insurgency in jungle environments). This aircraft flies farther, faster, has a longer loiter time and carries more weapons than its competitors and it has the added advantage of being the same aircraft employed by our allies in South America to counter any expansion by our enemies in the area – Bolivia, FARC and Venezuela- which wanted to buy this aircraft but Brazil was pressured into nixing the sale under pressure from the US. Brazil, Ecuador, Columbia, Chile, Paraguay, Honduras, Guatamala, and El Salvador operate this aircraft so you can see why it would be advantageous for us to operate the same aircraft in that area. Speaking as a 30 year veteran air force/navy ordnance/aircraft maintenance guy/security forces commander with some experience in these missions; this was the right decision for this mission.

      • http://www.marklaiminger.org Lammo

        not by freezing out another contractor, apparently because there are more electoral votes available in Florida than there are in Kansas.

        • http://lukos.com Ed54

          The Hawker offering failed to meet government capability specifications and was eliminated from the competition. This happens all the time in federal contracting and is entirely consistent with FAR (Federal Acquisition Regulations) competitive bid procedures. That decision passed the review process by the GAO, which reviewed and dismissed the Hawker protest.

          This should not be a partisan political issue. Those who make it one are putting partisanship above the welfare of our soldiers. If this lawsuit delays start of contract work, it will prevent soldiers in combat on the ground in Afghanistan from getting the air support they need. Soldiers will literally die because of this lawsuit.

  • flgal208

    On the heels of a $355 million aircraft manufacturing contract awarded by the U.S. Air Force to Jacksonville-based Embraer and partner companies, Governor Rick Scott commended the team effort by Lt. Gov. Jennifer Carroll, Senator Bill Nelson, Jacksonville Mayor Alvin Brown and other Florida officials, including members of the Florida Congressional Delegation, who all played key roles in landing the contract for Florida.

    ?This is an important deal for Florida?s economic future, and I?m particularly proud of Lt. Gov. Carroll?s leadership, alongside that of Senator Bill Nelson, Jacksonville Mayor Alvin Brown, and that of the Florida congressional delegation, all of whom worked hard on this deal for our state and community,? said Gov. Scott. ?The Lieutenant Governor personally testified before the U.S. International Trade Commission on behalf of Embraer, and her military aviation background and strong ties to the Jacksonville community played an important part in helping to seal this deal.?

    Consistent with Gov. Scott?s plan to make Florida the number one state for doing business, Lt. Gov. Carroll has vigorously embraced her role as an economic ambassador for Florida.

    In addition to leading two trade missions, Lt. Governor Carroll appeared before the United States International Trade Commission in Washington D.C. on September 28th, 2011, to testify at the ?Business Jet Aircraft Industry: Structure and Factors Affecting Competitiveness? hearing. The Lt. Governor appeared in support of Embraer, an aircraft manufacturer that has their North American headquarters in Melbourne Florida.

    The full text of the Lt. Governor?s remarks before the commission can be viewed here.

    Additionally, Lt. Governor Carroll penned an op-ed encouraging Floridians to contact their member of Congress in support of the Embraer deal, and as a former Navy Lieutenant Commander and aircraft maintenance officer, she also appeared in a video extolling the advantages of Embraer?s A-29 Super Tucano for the light attack role sought by the United States Air Force.

  • lineholder

    As someone who worked in machining for years, I know that it would be extremely easy for a manufacturing company to find ways to “sabotage” this equipment, just by failing to meet quality specs. If the government insists on this, then it would be wise for any end-users of those products here in the states to increase their product sampling methodology…just for confirmation.

    I think drawing attention to this administration’s definition of “transparency” and presenting case after case of these kinds of decisions that either hurt us economically or potentially put us at risk is something that is very badly needed. We definitely won’t get the truth from the MSM. So thank you, Ben.

  • spinoneone

    is really no contest from the performance vantage point. The Brazilian bird flies faster, farther, higher, carries more payload, and is more flexible. Both aircraft use a variant of the Canadian Pratt & Whitney PT-6 turboprop, both will have U.S. built avionics, both will carry U.S. weapons, and both would be manufactured in the U.S. The AT-6B in Wichita, and the A-29 in Jacksonville, FL. Oh, and by the way, Hawker is a British company.

    On the other hand, the BH0 administration has a history of utter obfuscation when it come to contracting with “friends” a la Solyndra, GM, etc.

    • streiff

      according to spec sheets the two aircraft are virtually identical. Each has marginal advantages in speed (the Turcano) and range. Because they have the same power plant they carry the same weight.

      Hawker Beechcraft is an American company with only a modest connection to Britain.

  • http://lukos.com Ed54

    nt