Chip Rogers: Head-to-head competition a money saver
by Chip Rogers
Guest columnist
April 13, 2010 12:00 AM | 472 views | 5 5 comments | 5 5 recommendations | email to a friend | print
Amid the serious concerns raised about government spending - particularly health care and so-called stimulus packages - there lies another, less publicized issue, that should cause great alarm: government plans to kill competition among suppliers, thereby eliminating the best-known mechanism for controlling costs.

The plan involves the Joint Strike Fighter, a program already over budget and behind schedule - so much so that it has come under fire from Congress and the Pentagon. Now, the Pentagon wants to eliminate head-to-head competition between the aircraft's potential engine producers. Such a decision would be both short-sighted and wasteful.

One engine project, from Pratt & Whitney, faces more than $2 billion in cost overruns and is years behind schedule. A competing engine from GE-Rolls-Royce is finishing development after a $3 billion taxpayer investment and poised for decades-long, annual competition. It is more than 70 percent complete and ready to fly next year.

The Pentagon's plan to kill the GE-Rolls Royce engine is simply foolish. It would save money this year and next, but it would waste $3 billion taxpayers have already invested. Moreover, the decision to kill the GE-Rolls Royce engine would give Pratt & Whitney a $100 billion, single-bid, monopoly for decades.

The cost benefits of head-to-head competition would more than pay for the development of the second engine. The Pentagon will also be ignoring 15 years of bi-partisan congressional support and directives for competing and fully interchangeable JSF engines. Finally, the Weapons Acquisition Reform Act of 2009, signed by President Obama, mandates competition through the life cycle of major weapon systems programs.

Of course, the benefits of competition go well beyond costs. Given the scope of the JSF program, planners recognized years ago that competing engines would be key to national security. The JSF program will be the largest weapons procurement in U.S. history, replacing the majority of current tactical fighter aircraft in the U.S. Air Force, Marines, and Navy inventories, as well as tactical aircraft of nine or more international partners - more than 4,000 aircraft in total. It will ultimately account for 95 percent of our fighter coverage. So, killing head-to-head competition would leave our fighter fleet acutely vulnerable to an engine recall. Is it really in the best interests of taxpayers - and our servicemen and women - to rely solely on one fighter engine?

Even setting aside national security concerns, the value of competition in defense programs is historically validated - especially competition among large fighter engines. After facing serious problems with a single engine provider for its F-15 and F-16 fleets in the 1980s, the U.S. government introduced a competing engine. The improvement in contractor behavior through competing engine suppliers was dramatic, resulting in vastly improved engine reliability and performance, and a 20 percent reduction in overall costs, according to the U.S. Government Accountability Office.

After considerable study, the GAO recently concluded that similar benefits would be realized with competing JSF engines. For the JSF engine acquisition over time, that's a potential $20 billion in savings. Equally important, the GAO cites significant non-financial benefits through competition, including far greater JSF readiness. Competing engines keeps contractors honest and efficient.

I am gratified that many in Congress - on both sides of the aisle - are taking issue with this imprudent effort by the Pentagon. Americans need to demand that the Pentagon doesn't kill competition.

At the very time when American jobs are scarce and our global aerospace technological leadership is being challenged, we simply cannot afford to ignore the far-reaching implications of canceling the competition among JSF engine producers as it approaches completion.

State Sen. Chip Rogers (R-Woodstock) serves as Senate Majority Leader. He represents the 21st Senate District which includes portions of Cherokee and Cobb counties.
comments (5)
« Over it wrote on Wednesday, Apr 14 at 06:32 AM »
Rogers and Cagle MUST GO! Do not think you will rebound from your recent stunts. It is about time the press opens Cagle's closet and begins to report on what is hidden there. Something the press has been aware of for quite some time. I do believe it's what's in his closet that kept him from running for Governor NOT his back. Isn't that right Casey? Good ole Chip. Get a backbone! You are no longer worthy to represent the people. You have decided representing Cagle is far more important. BIG MISTAKE
« GoodScout wrote on Tuesday, Apr 13 at 03:13 PM »
I agree. Chip is dangerous. He's already ignoring his constituents and focusing on a congressional career. Let's defeat him this November and explain what the "will of the people" means.
« Scott_p wrote on Tuesday, Apr 13 at 12:17 PM »
This man needs to be defeated in the next election. He is BAD for Georgia, and BAD for his district. He has blocked transportation funding for 3 years now. He had to audacity to state that he opposes the transportation bill because most of his district wouldn't benefit. Hello!! Does this idiot think people in Woodstock dont drive to Atlanta to work???
« mk,..sic of BS! wrote on Tuesday, Apr 13 at 08:27 AM »
I lost hope in the American Dream,... living here in Smyrna , Georgia,... w/ the drug cartel cooking up meth in the house next door & illegals taking over the construction & painting industry. Chip, I came to see you a year & 1/2 ago to show you what South Carolina was attaching to their immigration bill to give it 'teeth'. You didn't take me seriously & just sorta shrugged your shoulders.Now, South Carolina is fining companies for hiring illegals!! The the truth came out about the loopholes in Ga.s SB529 w/ the sub-sub contractors working on the Cobb jail. I contacted you & you said it ain't your baby any more- you're off to 'other' projects.

Well, this must be one of them. Maybe your hearts not in this one , really, either! W/ politicians, it seems to be whatever floats your boat for the moment.
« Alan Faircloth wrote on Tuesday, Apr 13 at 08:17 AM »
After the little stunt that Chip Rogers pulled with State Senator Preston Smith for refusing to ignore his constituents and vote for a new tax on hospitals (the stunt being that they revoked Smith's Chairmanship of the Judiciary Committee as payback), I have NO trust and NO respect for Mr. Rogers. In my scorebook, he rates 0 for character, 0 for integrity, and a plus 10 for manipulative, lying, double-timer.