Mike McCaul  Read the Letter

Recent media reports and Lone Star Project research paint a clear picture showing that Republican Congressman Michael McCaul (CD10 – Austin) failed in his key responsibility to protect a major federal contract in his district costing Texas nearly 3,000 jobs.

For 17 years, BAE Systems in Sealy, Texas, has built military trucks called Family of Medium Tactical Vehicles (FMTV) for the US Army in a plant that sits in the heart of the 10th Congressional District.  BAE Systems is the single largest defense contractor in District 10. (Source: USASpending.gov)   The billion dollar contract was recently taken from BAE and awarded to Oshkosh Corp. in Wisconsin costing McCaul's constituents thousands of good paying jobs.  McCaul has yet to produce any documentation that he fought for the Sealy jobs before the contract was awarded or even took the most basic steps to promote the fine work done at the plant. 

Today, the Lone Star Project sent a letter to Congressman McCaul asking a series of specific questions in order to resolve his conflicting statements on the contract loss and to uncover the facts that may help avoid major job losses in the future. 

Here are the facts: Medium Tactical Vehicles BAE Systems won the contract to build Family of Medium Tactical Vehicles for the US Army in 1991 and, since then, has built over 57,000 of the heavy trucks. (Source: BAE Press Release, May 28, 2009 ) BAE Systems is located in Sealy, Texas about 50 miles west of Houston and squarely within the 10th Congressional District represented by Republican Michael McCaul. The company employs between 2,700 and 3,400 Texans, most living in the Sealy/Katy area.  BAE Systems is the single largest defense contractor in District 10. (Source : BAE Press Release, May 28, 2009 , USASpending.gov) The value of the contract to the Texas economy is estimated to be $1.8 Billion per year including more than $7 million in state and local taxes. (Source: Greater Houston Partnership Press Release ) The contract was under review for renewal throughout the early part of 2009.  Wisconsin elected officials put together a $35 million tax incentive program to aid Oshkosh in winning the contract. (Source: Green Bay Press-Gazette, August 28, 2009 )   In August, the Army decided against renewing the contract with BAE Systems and, instead, awarded it to Oshkosh Corp in Wisconsin. (Source: The Houston Chronicle, September 24, 2009)

Department of Defense has confirmed that McCaul failed to act
An official letter from the Department of Defense obtained by the Lone Star Project states that no record exists of Michael McCaul contacting the Department of Defense during the contract review process to advocate for BAE systems or to request fair consideration that the contract be renewed. (Source: DOD Freedom of Information Act Request, 10/14/2009 ) Additional research shows that McCaul also failed to take other basic steps Members of Congress normally take when trying to win support from their colleagues to protect District jobs.

• McCaul failed to appear before the House Budget Committee on “Member’s Day” where Representatives can advocate for programs important to their district.  (Source: House Budget Committee Witness List )
• McCaul did not go to the House floor a single time to speak on behalf of the Texas/BAE contract or to defend Texas workers.   (Source: Library of Congress) 
• McCaul did not make any public statements or issue any press releases supporting BAE or the nearly 3,000 jobs covered under the contract.  (Source: McCaul Website )

McCaul’s PR spin raises more questions than answers
Michael McCaul dropped the ball when it mattered most, so now he’s trying to avoid responsibility by engaging in double-talk and spin control. His statements conflict with common sense and, more important, official information from the Department of Defense and defensive.

McCaul said: "BAE employees expressed concern to McCaul aides around late 2007 that the Army was seeking bids for the production of the trucks made in Sealy. Many of the trucks had already been made, and they found it unusual that the Army would seek bids for the rest of those trucks. McCaul's office relayed that concern to the Army."
-Austin American Statesman, December 2, 2009

The Department of Defense says:we received"a FOIA request for '[c]opies of any communication between the office of Congressman Michael McCaul (R-TX) and the Department of Defense pertaining to the production of [FMTV] in Sealy, Texas from 2005 to the present'... A thorough search was conducted, no responsive records were found"
-Source: DOD Freedom of Information Act Request, 10/14/2009

Defying common sense
When asked why he had failed to send any official correspondence or take any official action to promote the contract BEFORE it had been lost to Oshkosh, McCaul’s response was disturbingly naive and defensive. McCaul said:"Written communication 'is not how it works, ...It’s a little naive' to say so."  (Source: Austin American-Statesman, December 3, 2009)

Anyone familiar with congressional relations knows that formal, written correspondence is an essential element in any effort to gain federal support for a project. Letters and emails to federal offices are common and expected. In this instance, McCaul either did not understand a key element of his job or is simply not being truthful or willing to acknowledge his negligence.

Bottom Line
At this point Michael McCaul is little more than an observer of a process beyond his control. Junior Members of Congress in the minority party like Michael McCaul have little power and few responsibilities other than to promote their districts and protect district interests. Michael McCaul has failed in this basic responsibility. The only outside shot for BAE workers is if local leaders like Bill White and more senior Members of the Texas delegation – both Republicans and Democrats – can save the BAE jobs.  However, the Wisconsin Congressional Delegation has the upper hand and is fighting hard to protect their newly won contract. (Source: The Houston Chronicle, September 24, 2009 )