Posted on 02/15/2006 5:08:09 PM PST by Dubya
WASHINGTON – Sen. John McCain on Wednesday warned of ``an emerging scandal’’ in defense procurement and vowed to block the nomination of a high-ranking defense official until he gets answers in a contract dispute involving Lockheed Martin’s C-130J transport.
The accusations by the Arizona Republican, considered a leading unannounced contender in the 2008 presidential race, injected a surprise burst of drama in what was expected to be a relatively tame confirmation hearing for four defense nominees before the Senate Armed Services Committee.
McCain told Michael Dominguez, President Bush’s nominee to become deputy under secretary of defense for personnel and readiness, that he would not allow the nomination to move forward until the committee fully investigates the Air Force’s handling of the C-130J transport contract.
McCain, who is chairman of a key armed services subcommittee on military aviation programs, complained last year that the C-130J program was developed under a ``commercial’’ contract that prevented the government from scrutinizing the defense contractor’s cost reports.
Dominguez, while serving as acting Air Force secretary, assured McCain that the program would be restructured as a military contract to allow greater scrutiny, the senator said. Air Force and Lockheed Martin officials say the restructuring is under way, but McCain charged Wednesday that there has been no apparent movement on his demands.
``Mr. Dominguez, I’m sure you’re a good man. I’m sure you’re a decent person,’’ McCain said. ``But we have got to get this cleared up. We have got to get the C-130 J cleared up.’’
The $4.15 billion contract, which calls for 62 aircraft for the Air Force and Marines, is a mainstay for Lockheed Martin’s aeronautics company, based in Fort Worth. The planes are built at a plant in Marietta, Ga., employing 1,800 workers.
``Air Force contracting officers and their leadership should never have acquired the C-130 J using the commercial … acquisition strategy, but they did,’’ McCain asserted. ``It was done for 10 years.’’
McCain said he and his staff ``intend to pursue this issue until it is completely resolved and Lockheed Martin is held accountable for whatever part they played in this…disgraceful performance.’’ He also complained that Robert Stevens, Lockheed Martin’s chairman, CEO and president, had not provided information that McCain had requested on the contract, despite his earlier assurances to do so.
Tom Jurkowsky, corporate spokesman for the defense giant, headquartered in Bethesda, Md., said Lockheed Martin acted properly in executing the program under a commercial contract in the early 1990s. The arrangement, he said, was permitted under reform-oriented legislation designed to ease the burden on taxpayers by allowing defense contractors to carry out ``dual use’’ programs for both military and commercial development.
Lockheed Martin invested $1.4 billion of its own money for research and development, but commercial expectations never materialized, he said.
``We’re a government contractor who prides ourselves on being forthright and transparent,’’ Jurkowsky said. ``We have a reputation to preserve,’’ he said. ``We’ve done everything we’ve been asked to.’’
McCain, whose office was instrumental in exposing a tanker procurement scandal involving Boeing, said the defense department’s acquisition system ``is badly broken’’ and complained that defense contractors operate as a virtual monopoly, free of serious competition or government scrutiny. Several major procurement programs are behind schedule and overpriced, he said.
Also appearing before the committee was Pete Geren, a former Fort Worth congressman nominated to become under secretary of the Army. Geren is special assistant to Defense Secretary Donald Rumsfeld.
Dave Montgomery, (202) 383-6016 dmontgomery@krwashington.com
Sorely lacking from this report is any evidence of a scandal.
I read through and then went back and read parts again and I have decided that the scandal is McCain.
McCain should know about scandals involving money, seeing that he was one of the Keating 5:
http://www.captainsquartersblog.com/mt/archives/004016.php
I think it's time to investigate Congress. Security leaks, meaningless and expensive "investigations", ie. 9/11 Commission, pandering via pork barrel spending, lying, etc. from/by members of Congress makes for reason enough to investigate.
The man's reputation as "media whore" is being upgraded to "media slut."
I tried to find where this Dominguez fellow is in any way linked to the alleged shady C130J deal.
Seems like he is hi-jacking this guy's nomination to grind an axe against the Air Force and Lockheed Martin?
Dominguez, while serving as acting Air Force secretary, assured McCain that the program would be restructured as a military contract to allow greater scrutiny ...But it still isn't. That's the beef. The general allegation is that contracts so structured can be used for "shady dealing," but best I can see, there is no particular allegation beyond "lack of transparency."
More bloviating from the media magnet. Why isn't he out there cleaning up his baby Campaign Finance reform? If McCain is a 3rd party candidate in '08 as some have suggested, we should insist on the ticket of Guliani/Rice. Slam dunk to pull in the center. Won't get everything we like but 75% is better than 40% or zip. IMHO.
McCain learned about this kind of stuff as part of the Keating 5
"the scandal is McCain."
I wonder if this has anything to do with what Rep. Curt Weldon said today during the Able Danger hearings.
Weldon asked the AD witnesses if it's possible that when they captured some Chinese procedure information that involved well known names within Washington, D.C., that was itself the reason the AD program got shut down.
The witnesses said that was entirely possible.
:)
McCain has raised a question and rather than flog the Vice President, the MSM should be all over this.
If there's not, and McCain is just on one his media hog fishing expeditions to make himself seem important, then he should pay the price.
Jealous of Cheney!
John McLame, always hunting for the missing strawberry ice cream.
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