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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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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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