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Sealy plant loses Army truck deal [Houston, Tx area]
Houston Chronicle ^ | 2-13-2010 | STEWART M. POWELL

Posted on 02/13/2010 7:24:32 AM PST by deport

3,000 jobs may be cut

WASHINGTON — The Houston-area economy suffered a second blow Friday, with the U.S. Army rejecting a Sealy-based company's appeal to keep combat truck production in Texas, where it has been for 17 years.

The Army's action to award the contract to a Wisconsin firm — following a review ordered by Congress' watchdog Government Accountability Office — could claim an estimated 3,000 jobs at the Texas plant in suburban Houston, with layoffs beginning later this year.

Coupled with President Barack Obama's proposal last week to cancel NASA's $108 billion back-to-the-moon Constellation program, the Houston area could lose more than 10,000 aerospace and manufacturing jobs over the next two years.

Rep. Michael McCaul, R-Austin, whose congressional district includes Sealy, said the Army decision was “the wrong decision” for the workforce, troops in the field and U.S. taxpayers. There “appears to be a trend in this administration to move jobs out of Texas, whether it be cutting NASA's human space flight program or BAE's (truck) production,” he said.


(Excerpt) Read more at chron.com ...


TOPICS: Business/Economy; Extended News; US: Texas
KEYWORDS: army; bae; trucks
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1 posted on 02/13/2010 7:24:32 AM PST by deport
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To: deport

Texas gets next to no bailout money.

Obama is beyond despicable.


2 posted on 02/13/2010 7:26:55 AM PST by FormerACLUmember (The urge to save humanity is almost always a false front for the urge to rule. - H. L. Menken.)
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To: FormerACLUmember

Sounds to me like Oshkosh got the deal. They make a pretty robust product.


3 posted on 02/13/2010 7:28:17 AM PST by Tijeras_Slim (Live jubtabulously!)
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To: FormerACLUmember

it is chicago politics..


4 posted on 02/13/2010 7:28:25 AM PST by gibtx2 (keep up the good work I am out of work but post 20 a month to this out of WF Check)
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To: deport

Hmmmmm, it’s almost like Mugabe is punishing Texas.


5 posted on 02/13/2010 7:28:53 AM PST by DesertRhino (Dogs earn the title of "man's best friend", Muslims hate dogs,,add that up.)
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To: deport

Definitely not good. Jobs from a red state going to a blue state. Is somebody trying to stick-it to Texas?


6 posted on 02/13/2010 7:29:23 AM PST by smokingfrog (You can't ignore your boss and expect to keep your job... www.filipthishouse2010.com)
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To: deport

One has to ask the question.....What’s the ties with the Wisconsin company and Obama? Is he punishing Texas companies because they don’t back his policies?


7 posted on 02/13/2010 7:30:23 AM PST by RC2
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To: All

Slash and burn politics, Chicago style.


8 posted on 02/13/2010 7:31:48 AM PST by newnhdad (The longest of journeys begins with one step.)
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To: deport

Texas is in the crosshairs of the O administration.


9 posted on 02/13/2010 7:31:51 AM PST by Carley (Are you better off now than one year ago? HELL NO!!!!!)
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To: DesertRhino

We can take it!

Nobama best remember another dictator who tried to punish Texas.. He’ll go down in history as Santa Anna Nobama.


10 posted on 02/13/2010 7:34:15 AM PST by dusttoyou (libs are all wee wee'd up and no place to go)
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To: Tijeras_Slim

Does this have to do with unions?

Rewarding a liberal pro-union state with this contract?


11 posted on 02/13/2010 7:34:29 AM PST by adm5 (THE COMING TAX REVOLT SHOULD BE THE LAST THING OBAMA & CO. SHOULD BE WORRIED ABOUT.)
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To: deport

Obama is deliberately wrecking America. Why?


12 posted on 02/13/2010 7:35:32 AM PST by Rapscallion (OBAMA - President in Name Only (PINO))
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To: adm5

I don’t know, but it’s safe to consider the politics of anything these days.


13 posted on 02/13/2010 7:35:35 AM PST by Tijeras_Slim (Live jubtabulously!)
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To: RC2
One has to ask the question.....What’s the ties with the Wisconsin company and Obama? Is he punishing Texas companies because they don’t back his policies?

In the overall scheme of things, I think it's just a ploy to get more illegal immigrants to migrate further north for the jobs.

14 posted on 02/13/2010 7:35:52 AM PST by Willie Green
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To: deport

“There “appears to be a trend in this administration to move jobs out of Texas,”

How did you boys vote during the ‘08 election? You will learn not to screw with a Marxist!


15 posted on 02/13/2010 7:36:19 AM PST by gathersnomoss (General George Patton had it right.)
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To: FormerACLUmember
From the Statesman:

British-owned BAE Systems, which operates the Sealy truck manufacturing plant, had appealed after the Army initially awarded the contract to the Wisconsin firm last August to build 23,300 trucks and trailers for $3 billion over the next five years. BAE Systems had sought $3.4 billion for the work.

Oskosh Corp. is US owned, and we save $400 million in taxpayer dollars.

16 posted on 02/13/2010 7:36:34 AM PST by Yo-Yo (Is the /sarc tag really necessary?)
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To: deport

Damn him, we would pass by this plant making our way to Georgia (Ft. Benning) to visit our son and soldiers and always took pride in this plant. We’ll find a way...


17 posted on 02/13/2010 7:37:58 AM PST by brushcop (SFC Sallie, CPL Long, LTHarris, SSG Brown, PVT Simmons KIA OIF lll&V, they died for you, honor them)
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To: deport

Obama has done little for CA cuz he already owned their votes.
He’s punishing TX cuz they didn’t support him with their votes.


18 posted on 02/13/2010 7:38:48 AM PST by umgud (I couldn't understand why the ball kept getting bigger......... then it hit me.)
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To: brushcop

How many jobs at NASA JSC


19 posted on 02/13/2010 7:39:54 AM PST by gibtx2 (keep up the good work I am out of work but post 20 a month to this out of WF Check)
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To: Yo-Yo
US owned, and we save $400 million in taxpayer dollars

Hmmm, kinda hard to argue with that. I say let Ford build the trucks (in the USA)!

20 posted on 02/13/2010 7:40:15 AM PST by jpsb
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To: gibtx2

“He pulls a knife, you pull a gun. He sends one of yours to the hospital, you send one of his to the morgue. That’s the Chicago way!...”


21 posted on 02/13/2010 7:41:00 AM PST by Vaquero (BHO....'The Pretenda from Kenya')
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To: Vaquero

so we replace a dem .. for each event..


22 posted on 02/13/2010 7:41:50 AM PST by gibtx2 (keep up the good work I am out of work but post 20 a month to this out of WF Check)
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To: gibtx2

JSC (NASA Houston) is pretty much all about manned flight, if NASA is out of the manned flight business then there is little need for JSC. Easy 20k, 30k jobs at JSC counting contractors.


23 posted on 02/13/2010 7:42:54 AM PST by jpsb
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To: jpsb

all the nasa money went to climate change ..


24 posted on 02/13/2010 7:43:42 AM PST by gibtx2 (keep up the good work I am out of work but post 20 a month to this out of WF Check)
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To: jpsb

I am sure there is more to the story than saving $400 million. In fact, I suspect that the savings is illusory, but that the claim is made for PR purposes. It is very, very unlikely that a maqnufacturer in Wisconsin could underbid a manufacturer in Sealy. The cost structure in Texas is just too much lower. In Texas, Sealy would be a low cost location. I’m betting that there is something else going on.


25 posted on 02/13/2010 7:44:45 AM PST by achilles2000 (Shouting "fire" in a burning building is doing everyone a favor...whether they like it or not)
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To: gibtx2

Good, maybe they can figure out how to warm things up a bit. I’m frezing my but off in S.E. Texas (Houston area) right now.


26 posted on 02/13/2010 7:46:06 AM PST by jpsb
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To: achilles2000

You could be right, hopefully the appeal will reward the best bidder.


27 posted on 02/13/2010 7:48:27 AM PST by jpsb
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To: gibtx2

How many jobs at NASA JSC


From their web site:

http://www.nasa.gov/centers/johnson/business/jobs.html

JSC Jobs
The JSC civil service workforce consists of about 3,000 employees, the majority of whom are professional engineers and scientists. Of these, approximately 110 are astronauts.
+ View the website

Contractor Jobs
About 50 companies provide contractor personnel to JSC. More than 12,000 contractors work onsite or in nearby office buildings and other facilities.
+ Read More


28 posted on 02/13/2010 7:48:57 AM PST by deport (TEXAS PRIMARY -- 4 DAYS TO EARLY VOTING......... 18 DAYS MARCH 2, PRIMARY)
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To: deport

Obama hates Texas.


29 posted on 02/13/2010 7:48:59 AM PST by Weaponier (FREE TEXAS!)
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To: deport

The “Sealy-based” company is actually owned by the British Company BAE. They lost the contract in competetive bid process last August but had appealed the decision and was told yesterday that their appeal had failed. The Wisconsin firm had successfuloy won the contract and only two other firms had bid, BAE (Sealy) and a firm in ILLINOIS.

Trying to make this a vendetta against Texas is a little bit of a stretch.


30 posted on 02/13/2010 7:49:51 AM PST by awake-n-angry
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To: DesertRhino

My thought exactly. 0bama is hacking back NASA which gets Florida and Texas. A two-fer! Welcome to the 0bama-nation!


31 posted on 02/13/2010 7:50:04 AM PST by SubMareener (Become a monthly donor! Free FreeRepublic.com from Quarterly FReepathons!)
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To: achilles2000
I am sure there is more to the story than saving $400 million.

Actually, no there isn't. The US Army put out a solicitation for bids to build their next batch of FMTVs, and Oshkosh Corp. underbid BAE/Navistar by $440 million.

Given that Oshkosh has to build a line to manufacture these trucks, and BAE/Navistar already had the tooling amortized, there was quite a lot of profit margin in BAE/Navistar's bid.

They got greedy, and Oshkohs was hungry. Competition is the American way.

32 posted on 02/13/2010 7:50:14 AM PST by Yo-Yo (Is the /sarc tag really necessary?)
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To: deport

How can a company in a union state beat a company in Texas on a labor bid? Was the use of union labor *part* of the bid?


33 posted on 02/13/2010 7:50:18 AM PST by hocndoc (http://www.LifeEthics.org (I've got a mustard seed and I'm not afraid to use it.) (RIA)
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To: jpsb

You could be right, hopefully the appeal will reward the best bidder.


This is the appeal which BAE Sealy lost and Oskosh WI won.


34 posted on 02/13/2010 7:51:31 AM PST by deport (TEXAS PRIMARY -- 4 DAYS TO EARLY VOTING......... 18 DAYS MARCH 2, PRIMARY)
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To: hocndoc

How can a company in a union state beat a company in Texas on a labor bid? Was the use of union labor *part* of the bid?


Don’t know the bidding process. But I’d bet money the Feds have specifications regarding wages within their bidding specs. BAE may have gotten a little lax in holding cost down since they have had this contract for many years. Who knows what all lurks behind closed doors.


35 posted on 02/13/2010 7:53:45 AM PST by deport (TEXAS PRIMARY -- 4 DAYS TO EARLY VOTING......... 18 DAYS MARCH 2, PRIMARY)
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To: jpsb; Yo-Yo
US owned, and we save $400 million in taxpayer dollars

Saved?... to be given to ACORN.

36 posted on 02/13/2010 7:57:20 AM PST by lonestar (Obama and his czars have turned Bush's "mess" into a national crisis!)
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To: Yo-Yo
Definitely outperforms the current vehicles, better offroad, more survivable, made in USA - and just like the tanker deal, it's made in America. The euro's are upset over boeing getting the tankers, and oshkosh getting the trucks. Whenwe spend our defence dollars, buy here, not euro-consortium with chinese parts.
37 posted on 02/13/2010 7:57:37 AM PST by Waverunner ( "Think for yourselves and let others enjoy the privilege to do so too." Voltaire)
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To: deport

When did BAE acquire the plant from Stewart and Stevenson?


38 posted on 02/13/2010 7:58:03 AM PST by Fred Hayek (From this point forward the Democratic Party will be referred to as the Communist Party)
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To: deport

http://online.wsj.com/article/SB10001424052748703382904575059263418508030.html?mod=WSJ_latestheadlines

some experts weight in...


39 posted on 02/13/2010 7:58:25 AM PST by gibtx2 (keep up the good work I am out of work but post 20 a month to this out of WF Check)
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To: Fred Hayek

When did BAE acquire the plant from Stewart and Stevenson?


May 2007 I believe.


40 posted on 02/13/2010 7:59:58 AM PST by deport (TEXAS PRIMARY -- 4 DAYS TO EARLY VOTING......... 18 DAYS MARCH 2, PRIMARY)
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To: gibtx2

Right, good point also.


41 posted on 02/13/2010 8:00:44 AM PST by brushcop (SFC Sallie, CPL Long, LTHarris, SSG Brown, PVT Simmons KIA OIF lll&V, they died for you, honor them)
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To: jpsb
JSC (NASA Houston) is pretty much all about manned flight, if NASA is out of the manned flight business then there is little need for JSC. Easy 20k, 30k jobs at JSC counting contractors.

One would assume all those jobs were on the chopping block anyway since the shuttle was due to end in a year or so and the next manned missions were years down the road. What were they planning to do in the interim other than collect a paycheck?

42 posted on 02/13/2010 8:04:58 AM PST by Non-Sequitur
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To: RC2

“What’s the ties with the Wisconsin company and Obama?”

Hussein->Wis gov Doyle->Oshkosh

Doyle has been mentioned for a poistion (a czar) in the Hussein regime after he leaves the governorship next year.


43 posted on 02/13/2010 8:06:46 AM PST by PIF
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To: SubMareener
0bama is hacking back NASA which gets Florida and Texas. A two-fer!

Obama won Florida in 2008 so there goes that theory.

44 posted on 02/13/2010 8:07:32 AM PST by Non-Sequitur
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To: DesertRhino

Reducing TX to welfare state most likely plan.


45 posted on 02/13/2010 8:07:42 AM PST by PIF
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To: Yo-Yo

Possibly, but government contracting sometimes involves such skullduggery as switching specs under the table midstream (this includes ignoring specs in evaluation of bids) so that the bidders are effectively not bidding on the same item. That technique has been known to be used to steer contracts to companies preferred by some brasshat.

Here is an example where the Airforce got caught: http://www.govexec.com/pdfs/061808cd1.pdf

You may be right, but it is hard to believe that BAE/Navistar bid so high that a company in Wisconsin that had to build the line could underbid them in a fair competition.


46 posted on 02/13/2010 8:08:07 AM PST by achilles2000 (Shouting "fire" in a burning building is doing everyone a favor...whether they like it or not)
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To: Waverunner
That is the M-ATV, which stands for Mine Resistant Ambush Protected All Terrain Vehicle, which Oshkosh is building for use in Afghanistan.

The contract in this thread is for building the US Army's Family of Medium Tactical Vehicles:


47 posted on 02/13/2010 8:09:34 AM PST by Yo-Yo (Is the /sarc tag really necessary?)
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To: Non-Sequitur
You are correct, NASA JSC was going to get hit hard with the cancellation of the Shuttle project. But now there doesn't seem much reason to keep NASA JSC, may as well close the center and give the land back to Rice University.
48 posted on 02/13/2010 8:13:22 AM PST by jpsb
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To: awake-n-angry
Right decision, wrong reason. It is fairly clear Obama is engaged in Chicago-style thug politics, particularly against conservative states.

That this happened to be a decent decision his motives notwithstanding is just a bonus.

49 posted on 02/13/2010 8:18:15 AM PST by hopespringseternal
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To: achilles2000
The Air Force decided that the larger aircraft offered by EADS/Northorp Grumman, at a lower unit price than Boeing's smaller tanker, constituted a 'best value.'

The GAO upheld Boeing's protest because in the solicitation for bids it was not made absoultely clear how much "extra credit" for extra capacity would be scored. Boeing claims that if they knew that, they would have bid a larger tanker.

BAE/Navistar did protest the awarding of the contract to Oshkosh Corp, and was denied, which is the point of this thread. BAE/Navistar have been building these trucks for 12 years, and could have underbid Oshkosh if they didn't pad their margins. They estimated how much Oshkosh needed to bid for the contract, and they guessed wrong.

50 posted on 02/13/2010 8:20:48 AM PST by Yo-Yo (Is the /sarc tag really necessary?)
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