Boeing’s loss of the tanker aircraft contract to Northrop Grumman and EADS North America last week represents much more than the contract’s $40+ billion value—it also means the loss of a multi-million dollar investment in political persuasion.

Boeing has been among the top three defense companies in terms of lobbying expenditures for years, retaining more than 30 lobbying firms and consultants outside of the 17 in-house lobbyists registered under the Lobbying Disclosure Act. Of course, the company has projects cooking with several federal agencies, such as the Army’s Future Combat Systems and the SBI-net program for the Department of Homeland Security (see last week’s update). But they spent big on the tanker campaign between January 2005 and June 2007, according to disclosure filings that specifically name the tanker program. These include:

$1.2 million to Akin, Gump, Strauss, Hauer and Feld for “air tanker replacement;”
$240 thousand to Kerr Consulting (headed by Senator Carl Levin’s former chief of staff Gordon Kerr) for “U.S. Air Force tanker aircraft program;”
$160 thousand to PAW Associates (headed by retired Air National Guard Major General Paul A. Weaver) for “tanker and cargo aircraft modernization programs.”
Boeing also gave $180 million to the firm Baker Donelson Bearman Caldwell & Berkowitz to lobby on a Senate resolution and a U.S. Trade Representative complaint criticizing European governments for subsidizing EADS.

EADS may have won the contract on technical merit, but that doesn’t mean it didn’t spend plenty of money on the campaign. EADS has laid out considerable funds in establishing its Washington office, luring executives from competitors and Capitol Hill and building up its lobby infrastructure. While the company spent $4.7 million on lobbying in the 2005-2007 time frame, disclosure filings show it spent at least $1 million exclusively on the tanker deal, contacting lawmakers such as Senate Majority Leader Harry Reid (D-NV) and Rep. Don Young (R-AK). These expenditures include:

$340 thousand to the Federalist Group to lobby on “army cargo aircraft” language in the defense appropriations bill;
$240 thousand to Ogilvy Public Relations for “issues related to air refueling tanker procurement;”
$220 thousand to the Loeffler Group (founded by Rep. Tom Loeffler (R-TX) and headed by former Reagan administration official William Ball) for “initiatives and interests regarding the KC-30 aerial refueling tanker program.”

Northrop Grumman, EADS’ partner in the tanker deal, is also a top defense spender on lobbying, though none of its lobbyists specified the tanker program in their disclosure filings. However, it’s a safe bet that a healthy portion of its lobbying expenses between 2005 and 2007–$37 million, according to the Center for Responsive Politics—focused on the tanker. And remember that the bottom line for the companies’ campaigns are much higher when campaign contributions and non-lobbying advertising funds are factored in.

Contact: Laura Peterson (202) 546-8500 x114