Council calls on Defense Department to keep jobs in the region by awarding tanker contract to Boeing

March 29, 2010

Summary

Multi-billion dollar contract would be economic boost to region

Story

The Metropolitan King County Council today gave its support to the region’s aerospace industry by unanimously adopting a motion urging the United States Department of Defense to select Boeing to build the next Air Force midair refueling tanker.

“It’s absolutely time to move ahead on this contract without further delays,” said Council Vice Chair Jane Hague, prime sponsor of the motion. “Boeing has the track record and is a vital part of this region’s economy. The prospect of 8,000 additional jobs in King and Snohomish Counties and a contract worth as much as $35 billion will absolutely be a much needed stimulus to our local economy.”

“Boeing has long been a significant part of the economic success of our region,” said Council Chair Bob Ferguson. “Supporting Boeing’s bid is important to rejuvenating our economy and expanding opportunities for King County residents.”

The Boeing Company has been in the running for the approximately $35 billion contract for several years. Northrop Grumman in partnership with European-based Airbus was awarded the contract two years ago, but Boeing appealed the decision and the contract was put out for rebid. Northrop Grumman was still considered a major competitor for the contract, but pulled out of the bidding earlier this month. There are reports that a consortium headed by United Aircraft Corporation, a Russian-based government-owned aerospace company, is investigating bidding on the contract. There is also the possibility that the Department of Defense may split the contract between two companies.

In urging the U.S. Department of Defense to award a solo contract to Boeing, the motion notes Boeing’s success in constructing tankers for the Air Force and for military around the world. The motion also states that making the company the sole manufacturer could create or retain 40,000 to 50,000 jobs in this country during the greatest economic downturn in generations.

“For 100 years, Boeing has been the economic engine in this region, employing thousands of skilled workers in my district and throughout the county,” said Councilmember Jan Drago. “We need our federal government to know that we want these jobs, we needs these jobs, and that the tanker project should be built here in the Pacific Northwest.”

“Recovering from this recession is going to take jobs, jobs, and more jobs,” said Councilmember Larry Phillips. “By awarding Boeing the tanker contract, the federal government has the opportunity to put hard working men and women of our region back to work both directly at Boeing and indirectly through the support jobs that go along with increased manufacturing production.”