The Defense Department announced the award of the TX-Trainer contract to an American company, yet another big win for the Trump administration that will create and support hundreds of American jobs.
Questions swirled around the contract leading up to the award. Multiple foreign companies were involved in the bid, raising questions about whether this would be an opportunity to fulfill President Trump’s America First pledge.
But those concerns were assuaged. The announcement of the award $9.2 billion for about 350 jets will be made with the vast majority of the work being done in America.
The bid also continues the discussion about whether defense contracts could be a regular opportunity for President Trump to score political wins and secure American jobs. Giving preference to American companies in defense bids, within reason, seems like an easy way to beef up American manufacturing.
The bid also raised questions about the role of foreign corruption in defense bids. One company, in particular, was hit hard by questions of scandal. Korean Aerospace Industries faced a questionable history of corruption. Top industry experts suspect the loss will be particularly tough for Lockheed partner, KAI.
Defense News reports:
“The U.S. Air Force’s latest decision to award a multibillion-dollar trainer jet contract to a Boeing-Saab partnership seems to have slashed hopes for Korea Aerospace Industries to surge as a world-class aircraft maker.
Moreover, the loss in the trainer jet competition has apparently dejected the South Korean defense sector, which believed a massive export of T-50A trainer aircraft would provide a major boost to its arms export drive and help burnish its reputation as a top weapons exporter."
As we previously reported, KAI has some issues with corruption as well, which may have contributed to the loss.
KAI underwent a raid from 100 prosecutors and investigators on their offices. They reportedly found that KAI had allegedly purchased and installed an eraser program possibly to delete evidence left on computers and electronic devices. Five of KAI’s subcontractors underwent a raid within days of the previous raid. Prosecutors suspected KAI and its subcontractors colluded in embezzlement in the T-50 and Surion projects. A second raid of KAI’s headquarters also occurred to search for potential information.
Some of these allegations have yet to be resolved, but it's clear there are some serious questions surrounding some of South Korea’s top officials.
For now, though, American workers will be making the aircraft and President Trump is still winning.Don't forget to Like Freedom Outpost on Facebook, Google Plus, & Twitter. You can also get Freedom Outpost delivered to your Amazon Kindle device here.