A Pound of Thoughts

I have heard a lot of people squawking this week about the $35 billion deal that Northrop Grumman won against Boeing.  These certain people are accepting what the MSM are saying about the deal, that a "foreign" country has won the contract and Americans will "lose their jobs".  I must say that this is far from the truth.

Northrop Grumman Corporation is headed in Los Angeles, California.  EADS is headquartered in Paris.  But get this:  Northrop Grumman is the prime contractor.

So what does this mean?  Well, think of a pyramid.  NGC is on top.  EADS is a subcontractor.  And what’s more, here’s a look at all the subcontractors:

• EADS-North America
• General Electric - HQ is in Fairfield, Connecticut
• Honeywell - HQ is in Morristown, New Jersey
• AAR Cargo Systems - HQ is in Wood Dale, Illinois
• Sargent Fletcher - HQ is in El Monte, California
• Knight Aerospace Products - HQ is in San Antonio, Texas
• Parker and Telephonics - HQ is in Irvine, California

As you can see, EADS is the only subcontractor that is not in the United States.  Yet, they are the ones that supposedly "won" the contract.  Uh, nope.  Northrop Grumman won the prime contract.

Now to address the jobs issue:  No one is losing their jobs, and no jobs are moving overseas.  As a matter of fact, the project will be based in Mobile, Alabama, at Brookley Field.  It will create approximately 1,500 to 2,000 direct jobs in the U.S., with another 23,000 indirect jobs being created in the United States.  And here’s the kicker:  The KC-45A tanker program does not transfer any jobs from the United States to France or any other foreign country.

If you want some more disclosure, go here:  Northrop Grumman Sets the Record Straight Concerning the U.S. Air Force KC-45A Misinformation.

Just thought I’d help get the word out about this deal.  And here’s another thing:  I live 30 minutes from Mobile, so the potential positive impact of this deal on my neighborhood is immense.  A lot of people I know could possibly have jobs because of this.  It is a major boost to my local economy.  So the next time someone says that America is outsourcing its defense contracts, you just refer them to this post.  It’s about time some people need to be educated.