Tags: Homeland Security | Pentagon | Defense | Saab | EADS

Pentagon Contracts Go Overseas

Monday, 01 Aug 2011 12:33 PM

Even though defense spending is likely to be severely reduced as a result of the deficit reduction deal, foreign companies continue to court Pentagon contracts. The European contractors see the market as simply too big to pass up, The Washington Post reports.

Faun Trackway, a Welsh company that produces temporary roadways and landing strips, has decided to launch a U.S. business.

Pentagon encourages foreign companies to pursue Defense Department contracts.
Aerial view of the Pentagon
(AP photo)
The Swedish company Saab AB announced last month that it was doubling its Washington staff and recently purchased a New York air traffic management and surveillance firm and the Paris-based European Aeronautic Defense and Space North America, EADS, is seeking new acquisitions in the United States, the Post reports.

Part of the interest comes from comments from Pentagon officials who have encouraged foreign companies to pursue work with the Defense Department to create more competition.

“Globalization of our market is not an option. It is a reality,” Ashton Carter, the Defense Department’s top acquisition official, said according to the Post. “We are committed to continue opening our markets while at the same time striking the appropriate balance with security concerns.”

However, foreign companies hoping to do business with the military face regulatory burdens placed on them by the Pentagon and can become a target for those who believe such business should remain in the hands of American companies.

EADS became such a target during the competition for the next-generation aerial tanker. The American company Boeing won a $30 billion contract after an earlier deal with EADS was scuttled.

Nonetheless, EADS’ Sean O’Keefe said the company will continue to compete, according to the Post.





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Even though defense spending is likely to be severely reduced as a result of the deficit reduction deal, foreign companies continue to court Pentagon contracts. The European contractors see the market as simply too big to pass up, The Washington Post reports. Faun...
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