More American protectionism

Jim Mueller, writing for the Motley Fool, accuses Boeing of "wav[ing] the flag and cry[ing] foul" in its challenge to a tanker contract that was issued instead to a consortium of Northrop Grumman (American) and EADS (French, but their North American division is involved here.

Boeing's bid was materially inferior in all the categories specified by the Air Force. Tankers refuel warplanes in flight to extend their range.

Here's the irony. First, Boeing and the Air Force were caught several years ago in a scandal involving an inflated lease of tankers from the company to the Air Force. When that came to light, Congress and the public pressured the Air Force to hold a fair and open competition for replacing the tankers. As a result, the Air Force couldn't use factors such as job creation or the location of manufacturing in determining who gets the contract.

Second, the Buy America Act, cited by many of the deal's opponents, actually allows the deal. Companies such as EADS, located in certain countries such as France, qualify under a "public interest" exception. Sue Payton, the Air Force official who made the award, explained Wednesday in a hearing to Congress that many of the legislators currently crying foul voted to approve that exception.

One should not to buy American goods if they are markedly inferior. Additionally, a U.S. manufacturer would be involved anyway. Boeing is trying to play up protectionist sentiments to get its own way, probably at the expense of taxpayers and the Air Force.