Applying political pressure: Congressman visits BAE plant, vows to keep jobs in Sealy News

Business was usual, for the most part, for the workers at BAE Systems on Monday afternoon.

Chassis’ headed down the production line, parts were being prepped for placement, and finished Family Medium Tactical Vehicles (FMTVs) were being inspected.

Standing in the center of it all, though, was Congressman Michael McCaul, R-Austin, who visited the Sealy plant after meeting with members of the Sealy Task Force.

The force, aimed at securing the rebuy contract for manufacturing FMTVs at BAE Systems, is operating in full swing, putting political pressure on leaders in Washington, D.C. to ensure some 3,000 jobs stay right here in Sealy.

“Both Senators (Kay Bailey) Hutchison and (John) Cornyn and myself plan to meet with the Under Secretary of Defense for Acquisition Ashton B. Carter, who is really the chief official in charge of this decision,” McCaul said from the production line. “Ultimately, the buck stops with him, and Secretary of the Army John McHugh, who we plan to talk to as well.”

The Army is currently contemplating what to do with the FMTV rebuy contract it originally awarded to Oshkosh Inc. last fall. BAE Systems, along with Navistar of Illinois, appealed that decision, both saying it was fatally flawed. Last month, the Government Accountability Office sided with BAE Systems, upholding its appeal, and charging the Army to look at its bid process and award of the contract.

The Army has until Feb. 14 to announce its decision, which could include keeping the contract with Oshkosh, awarding it to a different company that bid, or re-bidding the contract all together, a move both BAE Systems leaders and Sealy Task Force members say would be the right move. In the meantime, with less than a month remaining until the Army must announce its decision, McCaul said the Texas delegation and task force members are moving full steam ahead.

He plans to pursue hearings in Congress on the contract, including talks of any “potential corruption” that may have taken place.

“The good news is the GAO upheld the protests that were made by BAE and found that this contract to Oshkosh was a fatally flawed contract,” McCaul said. “Specifically, they don’t have the capability to build the trucks the way the BAE facility does.”

The task force is also pushing for the Army to use the Weapons Systems Acquisition Reform Act, signed into law on May 22 of last year. The act was passed to strengthen oversight and accountability during the weapons acquisition process.

The act was signed into law after the FMTV contract was awarded to Oshkosh, but McCaul said the new undersecretary of procurement, during his Senate confirmation, said he would take the new procurement acquisition into account when awarding the contract.

“Now, I believe, and I believe officials at BAE agree, that if this new acquisition act had been in place at the time this contract was awarded, it would have gone to BAE and not Oskhosh,” McCaul said.

McCaul said while the task force is pursuing political strategy, BAE Systems is looking at potential legal action it could take, depending on the Army’s announcement next month.

Depending on the Army’s decision, the company could choose to pursue legal options in the federal district court or court of federal claims. The only legal action the company has taken so far was to file its two appeals of the Army’s initial award.

“Obviously with what’s going on across the world and Afghanistan and with Yemen, and now with the Christmas bomber, the work that the workers do at this facility is vitally and critically important to the national security of the United States,” McCaul said.

The plant is currently under contract to manufacture FMTVs through next year. The company hopes the decision from the GAO could help push awarding of a potential new bid back enough to where BAE Systems might be awarded a bridge contract to help carry over work until a new full bid is awarded. The company is also looking at other options to continue work through 2011 in hopes of then being awarded the full FMTV contract.

“(Oshkosh) underbid BAE, but the question is can they perform that contract at that price,” McCaul said. “They themselves, or officials, admitted in the media that they underbid the contract and they were going to have cost add-ons and overruns to pay for it.”

McCaul said the move would cause delays in manufacturing the vehicles during a critical time.

Sealy Mayor Nick Tirey and Austin County Judge Carolyn Bilski, both at Monday’s press conference, agreed that the city and county are working to do all they can to ensure the 3,000 Sealy jobs are secured. About 600 of those workers live in Austin County with another 1,000 in Katy. The Greater Houston Partnership has estimated some 10,000 jobs in the Houston area are at stake if the plant is forced to close its doors. The greater area would also see a $1.8 billion hit annually.

“The work for us is not over. Now is the crucial time,” Tirey said. “We have to keep that pressure on from a grassroots level and we have to back the congressman and senators and fight for these jobs and fight for Texans. These people out here at BAE are the best Texas has to offer. They are a force, they are vital to the men and women in uniform and we’re going to do everything that we can to make sure that we succeed.”