U.S. Air Force Reverses No-Bid Military Contract to Iran’s Friends in Brazil




Update: February 29, 2012: It looks like the Air Force has come to the rescue in what was an unacceptable Obama contract deal with the Brazilian government at the expense of a U.S. company, Beechcraft. Beechcraft was not even allowed to bid. At the same time Obama talked about bringing jobs back to the United States, he arranged a deal that gave a lucrative military contract to Brazil, a country with close ties to Venezuela and Iran.

Dilma Rousseff, Brazil’s communist President, is due to visit the United States and this move will affect the questionable relationship we have established with her country. My question is why would we even consider buying military aircraft from country with ties to our mortal enemies?

Financial Times reports:…The US Air Force has abruptly cancelled an order for counterinsurgency aircraft from Brazil in a setback for military relations between the western hemisphere’s two most important powers.

The US Air Force said it was not satisfied with documentation supporting the decision to award the contract to US technology company Serra Nevada Corp and its partner Embraer, Brazil’s flagship aircraft producer…

…The US Air Force’s decision follows a bitter fight between the Sierra Nevada-Embraer partnership and rival Hawker Beechcraft over the contract, which had escalated into a public row over which programme would generate more jobs in the US…

…Hawker Beechcraft is struggling with a 47 per cent fall in the value of direct contracts with the Pentagon over the past two years, according to Bloomberg data. It fired 300 workers in November, citing difficult markets…

Original Story: January 3, 20120: The U.S. awarded a $355 million U.S.Air Force contract to Embraer. Embraer is owned by Brazil, a country led by a Communist that has close ties to Iran and Venezuela.

Brazil will allegedly employ some U.S. suppliers and create 1200 jobs in the U.S. The awarding of this contract is an attempt to strengthen relations with Brazil. Read about it here: U.S. military aircraft contract goes to Iran’s friend while U.S. companies were not allowed to bid.

The recently elected President of Brazil is Dilma Vana Rousseff of the Workers Party (Communist) who strengthened ties with Chavez on December 11th of this year.

Since when is the U.S. a country that does not allow its own companies to bid against foreign competitors, especially communist competitors?

Original Story 11/21: When we’re not drilling in Brazil, we’re awarding no-bid weapons contracts to Brazilian companies that are friendly with Iran. Then we do it to the exclusion of an American company that has invested $100 million in the competitive aircraft.

Obama has no leanings towards U.S. companies but he does like communist-leaning ones. You can’t make this stuff up.

The Air Force has notified Hawker Beechcraft Corp. that its Beechcraft AT-6 has been excluded from competition to build a light attack aircraft, a contract worth nearly $1 billion, according to the company spokesman.

Hawker Beechcraft had worked with the Air Force for two years and invested more than $100 million to meet the Air Force’s requirements for the plane.

1400 employees in 20 states would have been employed through 2015 if they were awarded the contract.

The decision favors the Super Tucano built by Brazil’s Embraer for the initial contract to supply 35 with the potential for 55 aircraft worth up to $950 million, which does not include foreign sales. Read more at Washington Examiner

Embraer, a Brazilian aerospace giant, which is currently under investigation for potentially making illegal payments to obtain government contracts, is essentially owned by the Brazilian government, and it was given the contract.

To make it worse, Embraer has ties to Iran. In 1989, Brazil chose to sell their Tucano aircraft to Iran. Nothing like sharing aircraft secrets with an intermediary between ourselves and Iran.

In 2009, da Silva of Brazil invited Ahmadinejad to Brazil. Then in May 2010, da Silva helped broker a deal in which Iran would ship only a portion of its low-enriched uranium to Turkey for reprocessing; the rest would remain in Iranian hands, where it could be further enriched for nuclear weapon production.”

In Addition, an unusual clause in Embraer’s company bylaws known as the “Golden Share” provides the Brazilian government enormous operational powers that could pose a threat to American security.  According to Embraer’s website, that Golden Share provision empowers the Brazilian government with veto rights over: “Creation and/or alteration of military programs, whether or not involving the Federative Republic of Brazil;” “Development of third parties´ skills in technology for military programs;” and “Interruption of the supply of maintenance and replacement parts for military aircraft,” among other things. How dangerous is this?  We’re trusting the Brazilian government who will not exercise its veto rights and who buddies up to Iran.Read more at PJ Media