Reply #37: A new precedent set -- and its implications

[fortyfeetunder]

The fact that Lock-Mart won this contract as a partner with several European companies set a new precedent in defense contract awards.

Historically, the US government has been able to purchase the majority of its equipment within its own borders. But in the last 15 years, as I've observed, the defense contractors have consolidated to a few, with reduced selection and competition.

The precedent with reduced US content in a US government contract award now provides an open door for EADS-Airbus to be awarded contracts to supply airplanes to the US government--if they are partnered with another US company.

Boeing has traditionally been the government's choice for large passenger aircraft (For example the Air Force 1 jets), and its first generation tanker (KC-135). However, Airbus now has a chance if it partners with Lock-Mart and/or Northrop Grumman to compete on that scale aircraft.