For Immediate Release                                    Contact:  Leslie K. Paige 202-467-5334
March 6, 2008                                                           Alexa Moutevelis 202-467-5318

CCAGW SUPPORTS PROCUREMENT PROCESS
IN NEW TANKER DEAL

Washington, D.C. - The Council for Citizens Against Government Waste (CCAGW) today responded to congressional complaints about news that the $35 billion air tanker contract to build the country’s next generation of air refueling tankers would be awarded to Northrop Grumman Corp. and the European Aeronautic Defence and Space Co.  Members of Congress have reacted angrily to the surprise announcement, claiming that the deal unfairly penalizes the Boeing Company, which was the losing bidder in the deal.

For example, House Defense Appropriations Subcommittee Chairman John Murtha (D-Pa.) threatened to kill the deal at his hearing yesterday, saying, “All this committee has to do is stop the money, and this program is not going forward.”

“Chairman Murtha’s bravado is typical of members of Congress who load up spending bills with earmarks and think they know better than the Pentagon how to spend the taxpayers’ money.  The tanker contract was never considered competitively until the Air Force review, because Sen. Ted Stevens (R-Alaska) inserted a no-bid $23 billion leasing deal into the 2002 defense appropriations bill.  Fortunately for taxpayers, that deal was scuttled,” said CCAGW President Tom Schatz.

Sen. Hillary Clinton (D-N.Y.) articulated “deep concern” about the decision, and Sen. Barack Obama (D-Ill.) expressed disbelief that “an American company ... would not have done this job.”  Rep. Rahm Emanuel (D-Ill.) accused Sen. John McCain (R-Ariz.) of preventing the contract from going to Boeing.

“The members of Congress complaining about the tanker decision had no such complaints about the original leasing deal, which led to the incarceration of several individuals associated with the award.  Instead, they are blaming the loss by Boeing on those who exposed the waste and stood up for the taxpayers, including Sen. McCain and Sen. John Warner (R-Va.),” Schatz added.

Sen. Stevens has stated that he intends to introduce legislation that would guarantee Boeing a piece of the contract.

“The tanker decision is likely to be appealed by Boeing,” said Schatz.  “Politicians who insert themselves into that process are more concerned about scoring political points than they are about protecting the taxpayers.”

The Council for Citizens Against Government Waste is the lobbying arm of Citizens Against Government Waste, a nonpartisan, nonprofit organization dedicated to eliminating waste, fraud, abuse, and mismanagement in government.