Budd Leads Fight Against Kenyan Sale
(Source: U.S. Representative Ted Budd; issued Feb 14, 2017)
The US Air Force is alleged to have passed over Iomax at least three times to award a contract to L-3, even though its offer was more expensive. A Congressman is now looking into the latest contract. (Iomax photo)
WASHINGTON, D.C. --- Today, U.S. Representative Ted Budd (R-NC) introduced a resolution to halt a Foreign Military Sale to the Government of Kenya for 12 weaponized border patrol aircraft. The proposed sale would reward a $13 billion company that has never produced airplanes of this type and would cost $283 million dollars more than a small business in North Carolina, which is currently producing the needed aircraft.

This is at least the third instance the disabled veteran-owned NC contractor was passed over, despite its ability to deliver a more cost-effective option.

“My office has received credible allegations of faulty contracting practices, fraud, and unfair treatment surrounding this sale. Given that this proposed contract was decided without competition, to a company that has no experience or track record producing this kind of aircraft, and for a price that is more than double what a contractor in our district has quoted, further investigation is definitely in order.

“The resolution I introduced today would halt this sale, and give the Congress time to look into these troubling allegations. We need to ensure that Kenya, a longtime ally, is getting a fair deal, and that veteran-owned small businesses in our state aren’t getting shut out of competition because of government favoritism towards giant contractors.”

IOMAX is a Service-Disabled, Veteran-Owned Small Business located in the 13th District. They are the only company in the world that can export and has exported weaponized border patrol aircraft from the United States.

In spite of this reality, the Air Force, along with the Defense Security Cooperation Agency, awarded a $418 million sole-source contract to L-3, a $13 billion defense contractor, to fulfill Kenya’s request for 12 weaponized border patrol aircraft.

IOMAX claims that it can fulfill the contract for $180 million, and it has 48 weaponized border patrol aircraft in service, as opposed to zero for L-3.


Congress Eyes Kenya Arms Sale
(Source: Politico; posted Feb 14, 2017)
WASHINGTON, DC --- Capitol Hill and industry sources tell Morning D: Rep. Ted Budd (R-N.C.) plans to introduce a joint resolution to the House today that would prohibit a $418 million arms sale by L-3 to Kenya. If adopted, the measure would be the first time Congress voted to block a foreign arms sale since 1986.

IOMAX, a small-business defense contractor in Budd's congressional district, proposed selling its armed intelligence-collection aircraft to Kenya at less than half the cost as its competitor L-3, IOMAX said.

Furthermore, IOMAX argues that while it has fielded 48 such aircraft - including in the United Arab Emirates, Jordan, and Egypt - L-3's plane remains in the development phase.

IOMAX alleges the Air Force improperly awarded a sole-source contract to L-3. The sale is the most recent example of the Air Force awarding sole-source contracts to L-3 without sufficient justification, according to Budd's office.

In one case, the Sixth Special Operations Squadron, based in Yemen during 2013, rejected Air Force Acquisition's attempt to provide them with L-3's plane.

L-3 and Air Force Acquisitions didn't respond to Politico's requests for comment.


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