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Backing BAE: Grassroots task force aims to support plant, workers

October 28, 2009
In the News

Looking to address the potential closure of Sealy’s BAE Systems plant head on, the City of Sealy is teaming up with representatives from across the region to form a grassroots task force aimed at keeping the company alive and well.

BAE Systems, which employs 3,000 from Austin, Harris and surrounding counties, is appealing the U.S. Army’s recent decision to award a follow-on contract for manufacturing the Army’s Family of Medium Tactical Vehicles (FMTV) to OshKosh Corp. in Wisconsin.

BAE Systems has cited a flawed bidding process in its appeal. The company has manufactured some 56,000 FMTVs over the past 17 years, contributing an estimated $500 million to the state’s economy each year through salaries, contractor costs and vendor partnerships.

Sealy Mayor Nick Tirey said the task force’s purpose is to show support and appreciation for the local men and women who work at the plant, as well as educating citizens on what’s going on, and getting them involved.

“We’re going back to grassroots,” Tirey said. “The workers at BAE have done a great job over the past 17 years, and we want to recognize them. We’re also trying to shed light on what’s going on here. We want to get people involved with writing letters to their congressmen and state representatives. We need to let them know.”

He said the hit is substantial for Sealy, but noted it reaches farther than Austin County. Of the 3,000 jobs at the plant, roughly 600 are held by Austin County residents. “While a lot of those people don’t live here in Sealy, all of the money is infused into Sealy,” Tirey said. “The workers go to our shops, buy lunch at our restaurants. There may be a limited number of jobs, but it’s still a big impact, and not just for Sealy, but for all of Texas.”

Another 1,000 workers commute from Katy, while the rest of the jobs are held by workers from around the area.

“This is not about sour grapes, this is not about Texas being better than Wisconsin,” Tirey noted. “It’s about the way (the Army) graded that contract. We can make (the FMTVs) better. We’ve been making the best for 17 years, and we can make the best now.”

Also serving on the task force are representatives from the Sealy Economic Development Corporation (EDC), the Katy Area EDC, CenterPoint Energy, the Greater Houston Partnership, U.S. Rep. Michael McCaul, and Rep. Lois W. Kolkhorst.

While the implications of losing the follow-on contract are substantial, Tirey said he and city leaders have not lost hope in the company’s future. The appeal process is an uphill battle he said, but it’s a fight the company is looking to take on, and win.

“Sealy has always had a strong manufacturing base,” noted Kim Meloneck, executive director of the Sealy EDC. “Sealy clearly has the most experienced workforce, and most advanced facilities and infrastructure to support the production of these highly specialized vehicles needed to protect the lives and work of our nation’s Army.”

The city is now looking to the public for support. Sealy City Manager Chris Coffman will hold a workshop tonight, starting at 6 p.m. at city hall to mobilize volunteers.

Coffman said tonight is a chance for citizens to get active in the fight to keep BAE Systems, and its employees, in Sealy.

Coffman plans to hand out brochures and literature on BAE Systems and the appeal, along with a list of names and addresses to which residents can send letters to, urging support to keep BAE Systems alive in Sealy.

A decision on the appeal is expected by Dec. 14.

“It’s an uphill struggle,” Tirey said. “The appeal process is hard. Very few of the appeals get overturned, but we’re hoping for the best.”

News of the task force follows on the heels of the company announcing it has filed a second supplemental protest to the Army’s FMTV rebuy decision.

The supplemental protest comes after BAE Systems leaders found additional concerns with the source selection process during the competition.

The company said it is “increasingly convinced the service’s source selection evaluation was flawed and that the Army did not follow its own stated objective to conduct a best-value FMTV competition based on a clear-cut set of criteria.”

BAE believes it offered the best value in its bid. The company filed its initial protest on Sept. 4, and first supplemental protest on Sept. 11.

Last week, McCaul, R-Austin requested formal hearings with two congressional subcommittees on the Army’s recent decision to abandon its longtime FMTV contract with BAE Systems.

In the past 17 years, the Army has invested more than $300 million rebuilding the infrastructure at the Sealy plant, making it a state-of-the-art facility where workers crank out 44 vehicles a day.

The company has consistently met, and exceeded, McCaul pointed out, the Army’s expectations in efficiency and quality.

Dennis Morris, president of BAE Systems Global Tactical Systems, said he is proud of BAE Systems’ accomplishments and takes great pride and responsibility in the work it does.

In the meantime, workers at BAE Systems’ Sealy plant continue to focus on pushing out vehicles and trailers. The company is currently in a contract that continues through 2010.