Wednesday, January 16, 2008

Blackfive posted concerns for the Northrop Grumman/EADS entry into the Air Force's bid to obtain new tankers.

I commented thus:

I used to work for Northrop Grumman on a few unrelated aircraft programs (Full disclosure: I hold no economic interest in NGC), where I read the company press releases for the NGC led partnership with EADS. I submit, however, the reliance on EADS isn't as technologically threatening as one might suppose.

Sure, developing new technology is risky and seldom goes as the managers plan (often a pollyanna view of development) and I would be hard-pressed to approve any sort of defense development with EADS where American industry is dependent on European ability to develop or share new technology. Shoot, I would be hard pressed to be dependent on American ability to develop new technology.

The thing of it is the way the partnership is currently framed. I admit not knowing the entire program specifics, but from what I can tell, NGC as the prime takes the already existing Airbus airframe and integrates other subsystems for the tanker mission. From the standpoint of EADS involvement, there is low risk, as long as the existing airframe meets the needs of the integrator without change. If we were only sharing with EADS what is necessary for integration, then I see little risk of "brain suck".

This is a tanker, not the F-35 or F-22. Other than defensive and communication systems, there should be little else that is sensitive. I would think that NGC would be integrating these without much involvement from EADS other than what it takes to get it on the aircraft.

The heart of the tanker issue is not the technology, but the politics. Still, is this really an issue? The reality of modern defense contracting is foreign corporations already are involved in American defense contracting--globalization at work. Just look up BAE and see how they're involved in DoD contracting. We do the same, look up Eurohawk--a Europeanized version of the Global Hawk. The F-35 is a prime example of what's going on today. The F-16 is being produced by Koreans. If we hue and cry about the EADS tanker, cry about what's being going on with tactical fighters for decades.

I have no horse in this race, not caring who gets the contract because I see it as a wash. I will grant giving business, even partially, to a foreign entity is not entirely desirable and, despite how the Air Force measures the programs against each other, I believe it's going to boil down to the perception of who we give money to. The cries of loss of technology is just window dressing.

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