It's a Bird, It's a Plane, It's Pork!

Boeing's C-17 cargo aircraft cost $250 million apiece. The Pentagon says it has plenty. But it's nearly impossible for Obama to kill a project that provides jobs in 43 states

By Ben Elgin and Keith Epstein

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Political protection: Boeing turned up the heat on McCaskill Louie Palu/Zuma Press

Bond had already backed more C-17s Kelley McCall/AP Photo

Nicholas Felton

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Steven Georges/Press-Telegram/Corbis

President Barack Obama and Defense Secretary Robert M. Gates want to leave the Cold War in the past—finally—and reshape the U.S. military into more of a counterinsurgency force. They have made reforming weapons acquisition a major priority, saying that some hardware designed for battling Soviet armies or other massive foes in vast open-field clashes ought to be replaced by lighter, less expensive gear. The Administration has pared billions from the budget for the Lockheed Martin (LMT) F-22 fighter, a super-sophisticated plane conceived in the 1980s for dogfights against Moscow's best. The Pentagon has also reined in a sprawling high-tech infantry project called Future Combat Systems that Boeing (BA) oversees. All told, a half-dozen major weapons systems have been eliminated for an estimated savings of more than $100 billion over coming decades.

But it's not like military spending is actually going down. At a projected $107 billion for 2010 alone—a 5% rise over this year—the Pentagon's base budget for planes, ships, missiles, and guns has grown more than 50% since 2000. Reforming and redirecting military procurement always riles members of Congress trying to protect jobs in their home districts. Lawmakers are teaming up with Lockheed, Boeing, and other defense contractors to push back fiercely on certain targeted programs, even when the Pentagon says it doesn't need the weaponry in question. In some areas, organized labor has joined the fight.

The C-17 Globemaster offers one illustration of successful opposition to the Obama-Gates push for control of weapons spending. C-17s are large cargo planes produced by Boeing that cost $250 million apiece. They have been used heavily since 1993 to transport troops, tanks, and supplies. Every year since 2006, the Pentagon has said that it has enough C-17s. And every year, Congress overrules the military and authorizes funds for additional planes. In October the Senate approved $2.5 billion in the 2010 budget for 10 more C-17s, which would bring the fleet to 215.

"It's about political engineering," says Mandy Smithberger, a national security staff member of the Project on Government Oversight, a Washington nonprofit. "Companies design weapons systems to make them difficult to kill."

The C-17 by most accounts has served the Pentagon reliably and well. The cavernous Globemaster is flying in both Iraq and Afghanistan. But the real reason Congress wants more of them has little to do with military need. Boeing has built the C-17's industrial base for political survivability.

The company has spread manufacturing across no fewer than 43 states. C-17 production lines employ more than 30,000 workers, many of them relatively well paid by factory-wage standards. Many of those jobs would be at risk if C-17 work ground to a halt.

The White House understands the challenge. "The impulse in Washington is to protect jobs back home, building things we don't need at a cost we can't afford," President Obama said in August in a speech at the Veterans of Foreign Wars Convention in Phoenix. "The special interests, contractors, and entrenched lobbyists—they're invested in the status quo, and they're putting up a fight."

Enthusiasm for the Globemaster crosses political lines. "We're fighting two wars and meeting humanitarian needs; we need these planes," says Senator Kit Bond (R-Mo.). "It is a defense industrial-base issue, too. It produces jobs in 43 states. But that is secondary. We wouldn't push that unless there is a real need." Boeing's defense business has its headquarters in St. Louis.

Bond, Senator Barbara Boxer (D-Calif.), and 16 colleagues began circulating a letter in April urging members of the Senate Appropriations Committee to keep funding the plane despite clearly stated objections from the White House and Pentagon. In California, C-17 production employs 5,000 workers at a final assembly plant in Long Beach.

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