Team Infidel
Forum Spin Doctor
Atlanta Journal-Constitution
April 18, 2008
Pg. 1
Military plane project based in Mobile may be boon to the region, company says.
By John Kessler, The Atlanta Journal-Constitution
Defense contractor Northrop Grumman said Friday that its portion of a controversial contract for a fleet of aerial tankers to be assembled in Mobile could also create 4,200 jobs in Georgia.
Speaking at the Atlanta Press Club, Northrop Grumman Vice President Philip Teel said the new jobs would triple the company's presence in the state. It currently employs 1,700 at its 39 facilities in Georgia.
The jobs will be spread across Northrop Grumman and its supply base, which includes engine sub-assemblies in Atlanta, Vidalia and Milledgeville as well as subcontractors in Dublin and Chamblee. The company estimates the new contract will bring up to $180 million annual impact to the state's economy, though it won't provide data on how it arrived at this number.
The Air Force on Feb. 29 awarded the $35 billion contract to build the KC-45 tanker--an aircraft that refuels military jets in flight--to a partnership between California-based Northrop Grumman and the parent of European jet-maker Airbus.
The new tanker is a modified version of Airbus' A330 commercial airliner.
The deal sparked fierce criticism that the Pentagon had awarded one of its most lucrative contracts, in part, to a foreign concern. U.S. jetmaker Boeing, the losing bidder, protested that the contract award was flawed and filed a protest with the Government Accountability Office.
"People were providing misinformation that we were shipping American jobs to France," said Northrop Grumman spokesman Dan McClain. "Lots of things were said in the halls of Congress and in the press that are simply not true."
While the Georgia Department of Economic Development normally touts new jobs in the state, spokeswoman Maggie Large said, "We cannot confirm the number that Northrop announced today."
Indeed, there's a certain semantic spin to Northrop Grumman's discussion of jobs.
"The KC-45 will be the linchpin in a new Southern aerospace corridor," Teel stated, adding that many jobs will be centered in the Southeastern states of Georgia, Florida, Alabama and Mississippi. Yet the company plans to smile more on some states than others.
According to its Web site, the tanker contract will "generate 2,000 new jobs" in Florida and "generate 5,000 new jobs" in Alabama. But in Mississippi it will "bolster economic growth" while creating an unspecified number of jobs. For Georgia, the enthusiasm is muted when the site reads it will "support 4,200 jobs."
A company spokesman could not break down how many would be new jobs versus new work for employees already on payroll somewhere, or how many would be at Northrop versus its stable of subcontractors.
Further, Boeing's protest may prove to be a serious thorn in Northrop Grumman's side, says one industry analyst.
"It could certainly hold up the whole thing," says Richard Aboulafia, vice president of the Teal Group, a Washington, D.C., aerospace and defense consultancy. It could delay the deal by one to three years. Both sides are making very ambitious claims." The Government Accountability Office has until mid-June to reach a decision.
In addition to its defense and aerospace work, Northrop Grumman--a $32 billion company with 120,000 workers in 25 countries--is also a major information technology provider. Among its many products are the touch-screen displays used on CNN.
To that end, Teel also announced that Northrop Grumman was on the short list of bidders up for the Georgia Technology Authority's announced overhaul of the state's information technology systems.
Staff writer Scott Thurston contributed to this article.
April 18, 2008
Pg. 1
Military plane project based in Mobile may be boon to the region, company says.
By John Kessler, The Atlanta Journal-Constitution
Defense contractor Northrop Grumman said Friday that its portion of a controversial contract for a fleet of aerial tankers to be assembled in Mobile could also create 4,200 jobs in Georgia.
Speaking at the Atlanta Press Club, Northrop Grumman Vice President Philip Teel said the new jobs would triple the company's presence in the state. It currently employs 1,700 at its 39 facilities in Georgia.
The jobs will be spread across Northrop Grumman and its supply base, which includes engine sub-assemblies in Atlanta, Vidalia and Milledgeville as well as subcontractors in Dublin and Chamblee. The company estimates the new contract will bring up to $180 million annual impact to the state's economy, though it won't provide data on how it arrived at this number.
The Air Force on Feb. 29 awarded the $35 billion contract to build the KC-45 tanker--an aircraft that refuels military jets in flight--to a partnership between California-based Northrop Grumman and the parent of European jet-maker Airbus.
The new tanker is a modified version of Airbus' A330 commercial airliner.
The deal sparked fierce criticism that the Pentagon had awarded one of its most lucrative contracts, in part, to a foreign concern. U.S. jetmaker Boeing, the losing bidder, protested that the contract award was flawed and filed a protest with the Government Accountability Office.
"People were providing misinformation that we were shipping American jobs to France," said Northrop Grumman spokesman Dan McClain. "Lots of things were said in the halls of Congress and in the press that are simply not true."
While the Georgia Department of Economic Development normally touts new jobs in the state, spokeswoman Maggie Large said, "We cannot confirm the number that Northrop announced today."
Indeed, there's a certain semantic spin to Northrop Grumman's discussion of jobs.
"The KC-45 will be the linchpin in a new Southern aerospace corridor," Teel stated, adding that many jobs will be centered in the Southeastern states of Georgia, Florida, Alabama and Mississippi. Yet the company plans to smile more on some states than others.
According to its Web site, the tanker contract will "generate 2,000 new jobs" in Florida and "generate 5,000 new jobs" in Alabama. But in Mississippi it will "bolster economic growth" while creating an unspecified number of jobs. For Georgia, the enthusiasm is muted when the site reads it will "support 4,200 jobs."
A company spokesman could not break down how many would be new jobs versus new work for employees already on payroll somewhere, or how many would be at Northrop versus its stable of subcontractors.
Further, Boeing's protest may prove to be a serious thorn in Northrop Grumman's side, says one industry analyst.
"It could certainly hold up the whole thing," says Richard Aboulafia, vice president of the Teal Group, a Washington, D.C., aerospace and defense consultancy. It could delay the deal by one to three years. Both sides are making very ambitious claims." The Government Accountability Office has until mid-June to reach a decision.
In addition to its defense and aerospace work, Northrop Grumman--a $32 billion company with 120,000 workers in 25 countries--is also a major information technology provider. Among its many products are the touch-screen displays used on CNN.
To that end, Teel also announced that Northrop Grumman was on the short list of bidders up for the Georgia Technology Authority's announced overhaul of the state's information technology systems.
Staff writer Scott Thurston contributed to this article.