Some of you may be familiar with a military procurement controversy that broke last Fall. The Army had the "temerity" to put up for bids a huge contract to supply military trucks being used in Afghanistan. The existing contract was held by BAE Systems, a foreign-owned company, and the vehicles were being manufactured in Sealy, Texas, a right-to-work setting.
Oshkosh, an American company in Wisconsin with a unionized workforce, undercut BAE's bid by 25%. The Army had no choice but to award the contract to Oshkosh. This set off a firestorm among the Republican criminal class in Texas and in Washington, D.C. The GAO was asked to investigate, and decided a regulation not in place at the time of the bids would retroactively overrule the decision. Defense Secretary Gates, a Texas Republican, oversaw a rebidding of the contracts where BAE retained $1.4 billion for FMLVs, while losing on FMTV's to Oshkosh.
Some of you may be saying: "BAE? Where have I heard that recently?"
This week, BAE pleaded guilty in the U.S. and in England to criminal bribery in support of defense contracts. It seems, at least outside the U.S., it's a crime to give a politican money in exchange for a rigged bidding process in favor of your firm. To understand how connected BAE is, noted Bush lap-poodle Tony Blair tried to order the British authorities to not investigate BAE, for fears of the extraordinary corruptions the inquiry would reveal.
The connections boggle the mind: BAE paid huge bribes to Saudi Prince Bandar. Bandar made a huge investment in Citibank. Citi received billions in TARP funds. Per the "Citizen's United" SCOTUS decision, Citi can now act on Bandar's behalf and use TARP funds to lobby against financial reform. And Bandar's lawyer is Louis Freeh, to give the scandal a chilling "bipartisan" appeal.
But, here in the U.S., Defense Secretary Gates seems to have no problem paying a foreign-owned firm 25% more than an American-owned firm, even when the foreign-owned firm's labor and tax costs are much lower than the American-owned firm. Gates' seeming corruption here should be born in mind as Republicans defend companies that transfer American jobs and American profits overseas.
The question is: why did BAE retain any contracts to produce military trucks when their bids were at higher price, lower wages and with the profits accruing to a foreign-owned and criminal enterprise?
The Hill, commenting on the blizzard of lobbying going on, notes the Oshkish bid was fixed-price, cost-certain and required Oshkosh cover any cost overruns.
Regarding Gates, it must be noted BAE's bribery involves Saudi ties and Gates is incredibly close to the Bush family and the House of Saud. It must be noted Sealy, Texas is close to College Station, where Texas A&M University and the Bush Institute are located and where Gates served as University President prior to becoming Secretary of Defense under Bush.
And, we should also bear in mind the manipulation we are under from our corporate-owned media. Stories go from "bribes of foreign politicians" to "(lawful) contributions to American politicians" in the blink of an eyelash, without anyone questioning the twist.