Gulf Coast States Press For Tanker Deal
By DEBORAH BARFIELD BERRY Gannett Washington Bureau
Published: 25 Nov 2009 17:11
WASHINGTON - Gulf Coast officials are working together to land a federal contract to build nearly 200 refueling tankers for the Air Force, a multibillion-dollar deal that could create tens of thousands of jobs and jump-start an effort to create an aviation and space business corridor in the Southeast.
Gulf Coast officials in the United States are working together to land a federal contract to build nearly 200 refueling tankers for the U.S. Air Force. (U.S. Air Force)
Officials from Alabama, Louisiana, Mississippi and northwest Florida recently set up The Aerospace Alliance to try to boost the economy in a region struggling to redefine itself as job losses continue. Winning the tanker deal is the group's first major initiative.
"It's going to benefit the whole Gulf Coast," said Todd Stacy, a spokesman for Alabama Gov. Bob Riley, who also heads the Southern Governors' Association. "The idea is to identify, educate, organize and activate our allies (and) our partner states to communicate our message of why our tanker is the best solution for the Air Force."
State officials and congressional lawmakers are pressing the Defense Department to approve a contract worth up to $35 billion to build 179 refueling tankers. Northrop Grumman teamed with European Aeronautic Defence and Space Co. in its bid to build the tankers in Mobile, Ala. The partnership is competing with Boeing, which would build them in Washington state.
Congressional lawmakers had expected defense officials to release a draft of the contract proposal this month. Defense officials said Monday that they were still receiving questions and comments and expected to finish a draft proposal soon.
Lawmakers and alliance officials say the tanker deal could create 48,000 jobs throughout the country, including about 13,000 in the South. It could also boost business for local suppliers and service industries.
"It's up to the companies to convince the powers that be that they can build the right aircraft," said Melissa Medley, director of marketing and communications for the Mississippi Development Authority. "We are promoting why this is right to put it in this region."
Landing the contract would put the Gulf Coast up with Washington state and France as leading areas in the world for manufacturing large aircraft.
The alliance, formed last month, is touting the region's skilled work force and its aerospace research and development facilities, including the Raspet Flight Research Laboratory at Mississippi State University.
The region already boasts many aviation businesses, such as Northrop Grumman and Lockheed Martin, and space facilities, including the Marshall Space Flight Center in Alabama and the John C. Stennis Space Center in Mississippi. The region also is home to several Air Force bases, including Barksdale in Louisiana, Maxwell-Gunter in Alabama and Eglin in Florida.
"The biggest opportunity for us is the chance to position ourselves as an aviation - and aerospace-rich corridor," Medley said.
Gulf Coast lawmakers have been fighting for years to win the tanker contract to replace the Air Force's aging fleet of KC-135 tankers.
Air Force officials awarded the contract to Northrup Grumman last year, but Boeing appealed. Defense officials decided to rewrite the contract proposal after a Government Accountability Office investigation reported contract irregularities.
Last month, Alabama Sen. Richard Shelby and other lawmakers called on defense officials to rewrite a draft contract proposal for the tanker. They argued that that proposal favored Boeing. They also said they worried that defense officials may rely more on the lowest bid than on the quality of the tanker.
"Price shouldn't be the only criteria," Shelby, a Republican, said at a press conference in the Capitol. "We want to talk about value."
The lawmakers said Northrup Grumman proposes to build a tanker that is larger, carries more fuel and can stay in the air longer.
Boeing contends that its tanker carries more fuel, passengers and cargo than the current tanker.
Much is riding on the region landing the tanker deal.
"This would make us a leader," said Sen. Roger Wicker, R-Miss, who is supporting Northrop Grumman's bid and the effort to attract more aviation businesses. "I think it's coming. It's just a question of whether this crowning achievement can be had."
Alabama officials say winning the tanker contract is important not only to the state, but to the alliance's overall effort. Alliance officials set up a Web site and plan to map out marketing strategies.
But the Southeast has tough competition from the West for the tanker contract and other aviation business.
Washington state's aerospace advisers did not return phone calls, but Gov. Chris Gregoire said in an earlier statement, "Boeing will succeed in winning the tanker contract because it's the best, most efficient and cost-effective bid."
Gulf Coast officials acknowledge tough competition from Washington, but say there is also global competition from France and other countries.
"We not only compete with other states to try and draw in these other businesses, but with other countries," said Medley, adding that companies today can set up anywhere. "We want them to choose to site in our alliance states. We recognize we need to promote ourselves worldwide."
______
Ayesha Aleem, at the Gannett Washington Bureau, contributed to this report.
Help
