The F-35 Strike Force Fighter and the Missed Chance to Save Us Money

There is very little that can bring Republicans and Democrats together these days, which isn’t necessarily a bad thing considering the natural inclination of both over the last few years has been to spend money like it’s an Olympic event and they’re going for the gold. But every once in a while the two parties experience a sort of harmonic convergence and come together to do something that is actually based upon long-term thinking, not electoral advantage or political gamesmanship. Such is the case with the F-35 Strike Force Fighter, America’s next generation of fighter plane. But this wouldn’t be Washington, DC, were there not fight to be had somewhere, and in this case how best save money – in the short-term or the long-term. Therein lies where we join our story…

Normally the idea of Republican Leader John Boehner and liberal stalwart Dennis Kucinich agreeing on something would mean it would have to be about what time it is or from which direction the sun rises, but only sometimes. To say those two, and similarly aligned Members of Congress, regularly agree would be akin to saying the Washington Nationals have some room for improvement as a baseball team. But on this issue they are simpatico. Why?

Safe to say they didn’t lose a bet. The real reason is quite simple – long-term savings potential.

The Government Accounting Office (GAO) estimates that if what Boehner, Kucinich and ideological brethren voted for were to become law, the F-35 project could see savings of up to 12 percent in the long-term. While 12 percent may not be enough to get you off the couch for a TV priced at $500, we’re talking about significant savings when dealing with billions of dollars.

So what is this project? It is the decision of who is going to make the next generation engine for the F-35. While this doesn’t seem like it should be an issue inspiring any sort of controversy, it wouldn’t be Washington if it didn’t.

Seems there are two companies vying to make their engine the engine the choice for the F-35.

Generally speaking, competition is the lifeblood of innovation, inspires and without it there is little incentive to improve quality of decrease price. But the company that currently has the contract to make the engine for the F-35, a company called Pratt and Whitney, doesn’t, as companies that have an advantage, don’t want the competition, which in this case is coming from General Electric and Rolls-Royce.

The House of Representatives, on a bipartisan basis, agreed with GE & RR, that competition is a good thing. According to a study by the Institute for Defense Analyses, aside from potential economic benefits, “Competition could be expected to bring nonfinancial benefits in the form of fleet readiness, contractor responsiveness, and an enhanced industrial base.”

But competition never makes sense for the company with most to lose, in this case Pratt and Whitney, so they’ve undertaken a public relations campaign to kill the competition.

There are many things that make strange bedfellows, but none are as strange as the bedfellows made in politics. This issue has seen groups as diverse as the Center for American Progress and Citizens Against Government Waste joining forces to oppose competition. Why?

It may well be principle, it may be, in the case of CAP, undying loyalty to President Obama, who has been on the side of Pratt and Whitney and is being urged to veto the Defense Appropriations Bill if the competitive provision remains. Erick Erickson at RedState has speculated on the motives of CAGW.

Whatever the case may be, the free-market position and the practical long-term solution to addressing our spending addiction is competition.

While this may seem like an insignificant squabble between two companies that has no impact on the day to day life of you and other Americans, but it has real world implications, and not just on matters of national security. If the government can’t take simple money saving measures like introducing competition its own accounting office says will save us money in the long-term, what hope do we have to address the more serious spending issues that run risk of bankrupting the country in the not too distant future?

As with every type of addict, the first step is admitting you have a problem, then taking steps everyday to avoid falling back into the old, self-destructive habits that led to your addiction in the first place. Since politicians are not known for admitting mistakes, even when obvious, let’s be happy with the passive acknowledgement of the former and move on to the latter by introducing competition in as many aspects of government contracting as possible, starting with the F-35.