Company that Cut Deal with Trump Gets $2.5b Pentagon No-Competition Contract

Labor News

President-elect Trump and Vice President-elect Pence wave as they take a tour of Carrier in Indianapolis on December 1, 2016. (Jabin Botsford/The Washington Post)

Reprinted from The Washington Post by Aaron Gregg and Danielle Paquette on February 23, 2018.

United Technologies handed Donald Trump bragging rights in late 2016 when, just weeks after he won the election, the manufacturing giant publicly credited the soon-to-be president with striking a deal to save hundreds of Indiana furnace factory jobs that seemed destined to move to Mexico.

In exchange for $7 million in state tax credits, the firm agreed to retain 770 of roughly 1,400 positions at a Carrier plant in Indianapolis and send the rest to Monterrey, Mexico. Greg Hayes, the company’s chairman and chief executive, later suggested federal contracts also played a role, saying: “I was born at night, but not last night. … I also know that about 10 percent of our revenue comes from the US government.”

More than a year into Trump’s presidency, that federal money continues to flow to United Technologies’ subsidiaries. The Defense Department recently gave the company’s Connecticut-based aeronautics subsidiary a $2.5 billion contract without competition to provide propeller systems, wheels and brakes, landing gear, flight sensors and other equipment directly to the armed services. …

Washington Post 2/23

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About Jeffrey Burman 5245 Articles
Jeff Burman served on the Guild’s Board of Directors from 1992 to 2019. He is now retired. He can be reached at jeffrey.s.burman.57@gmail.com.

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