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NewsFlash: June 18, 2008

Reopened AF tanker discussions should weigh jobs impact

The Government Accountability Office today issued a recommendation to the Air Force to reopen discussions with Boeing and Northrop Grumman/Airbus over their competing proposals to build aerial refueling tankers, citing “significant errors” in the previous evaluations of the bids.

Robert Scott, who prepared an analysis comparing the employment impact of each of the proposals, urged that those re-evaluating the proposals should take a close look at the impact that the choice of contractor would have on U.S. jobs. Scott’s study found that awarding the contract to Boeing would generate at least twice as much job growth in the U.S. as going with the Air Force’s original choice, Northrop Grumman and its partner, European Aeronautic Defense and Space (Airbus). 

“Especially now, with the economy in a slowdown, we need every good job we can get, and these are very good jobs,” said Scott. “The economic impact of this contract on employment and job growth should be a major consideration in the U.S., as it would be for any other country contemplating a contract of this magnitude.”
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