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Boeing: A investigative look into an alleged pattern and practice of deceit: Part one

Brandon Moseley

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By Brandon Moseley
Alabama Political Reporter

For six decades a Birmingham business helped make Americans safe at home and abroad. Today that company is gone. The owners of that company believe aerospace giant Boeing used a pattern and practice of deceit to ruin their company. They hold Boeing responsible and are demanding justice.
Americans believe in competition. Football is our favorite sport. Racing has long been popular in this country, thoroughbreds for earlier generations, stock cars for a more modern era. Similarly Americans (Occupy Movement and other new age socialists excepted) believe in fair competition between businesses. The company who delivers the best product faster, better, and cheaper is the company that is supposed to win. This is a capitalist country with a market economy. We even make our corporations bid for defense contracts rather than relying on some state-run industrial complex. Presumably the company with the best product at the best price that does the best work wins those prized military contracts. But what happens if somebody is cheating to win those coveted contracts? What happens when the process is no longer fair and has been corrupted? Or rigged? That question is at the heart of the allegations that Alabama Aircraft Industries is leveling at Boeing in a $100 million lawsuit in federal court. The Boeing Company is the largest aerospace company in the world. Lawyers for Alabama Aircraft Industries are alleging that Boeing has engaged in a pattern and practice of improper, unethical, and even illegal trade practices in their dealings with the historic Alabama company that has been doing business in Birmingham for 61 years.

Recently, The Alabama Political Reporter sat down with both the former Chairman of the Board of Alabama Aircraft Industries (AAI) Skip Bowling and AAl Litigation Trustee Joe Ryan about the downfall of Pemco/Alabama Aviation and the lawsuit against Boeing that alleges Boeing is directly responsible for Pemco’s decline.

Alabama Aircraft Industries, formerly Pemco Aviation Group was founded in Birmingham in 1951 as Hayes Aircraft. By the mid 1950s, Hayes was busy refurbishing B-50D bombers into KB-50J aerial tankers for the U.S. Air Force’s Strategic Air Command. The B-50s were being replaced by the then new B52 bombers. In addition to the tanker conversion, Hayes added jet engines to the B-50s to improve their speed and altitude so that new high performance jet fighters would not stall out during refueling behind the slower KB-50s. Hayes was awarded a contract to do Programmed Depot Maintenance (PDM) on C130s Hercules transports in 1965. In the 1960s, the KB-50J tankers were replaced by purpose built KC-135 Stratotankers for the Air Force’s aerial refueling needs. In 1969, Hayes received the contract to do the PDM work on the Air Force’s KC-135 Stratotankers. In 1983, the company that emerged from Hayes Aircraft was PR Inc. and then Precision Standard Incorporated. Later the company became Pemco Aviation Group with Pemco Aeroplex being the division responsible for the Programmed Depot Maintenance at the Birmingham facility. After selling off its commercial aviation division (Pemco World Air Services) in 2007, the remaining core defense contractor was Alabama Aviation Industries (AAI). From 1969 to 2009 AAI and its predecessors did programmed depot maintenance on over 2,400 KC-135 Stratotankers, far more than any other company. At its height, 1,600 well compensated workers were employed by Pemco doing defense contract work on aircraft at the company’s massive Birmingham facility which is on of the grounds of the Birmingham Airport (Shuttlesworth International Airport). This is the sort of economic development project that economic development planners and governors drool over and which workers can build an entire lifetime around…..and it was here in Alabama, producing jobs while maintaining our military’s aircraft for decades.

The KC-135 Stratotanker was built by Boeing and is based on the Boeing 707 airliner. As aircraft age, they require extensive rebuilds and maintenance to continue flying. Programmed Depot Maintenance (PDM) is typically performed every 5 years or after 20,000 hours in the air on a KC-135. Alabama Aircraft Industries Chairman Skip Bowling told us that when a plane is sent to the depot for a maintenance visit the staff looks for fatigue cracks and corrosion. There is a checklist the technicians go through and perform. They disassemble the aircraft. Bowling said that you find unknown problems in this process often over and above the work that was planned. Sometimes you even have to take the wings off. Everything is inspected, cleaned, repaired, and put back together. Then the plane is repainted and sent back to the Air Force. Bowling said that the process takes 150 to 180 days normally to complete.

For thirty years, Pemco did almost all of the PDM work on the KC-135s. That contract was rebid in 1998. Inexplicably, the Air Force bundled the KC-135 PDM work contract with depot maintenance on the tank busting A-10 close air support fighter bomber aircraft. The two aircraft are entirely different. The person responsible for making the decision to bundle the two contracts was Principal Deputy Undersecretary of the Air Force for Acquisition Darleen Druyun, a civilian Air Force employee charged with procurement contracts. Who has since pleaded guilty to awarding contracts to Boeing over other companies for private compensation….companies like Alabama Aircraft Industries. Trustee Ryan said, “This bundling which was done to no one’s surprise caused Boeing to receive the contract because everybody on the planet knew that Alabama Aircraft was not equipped to maintain the A-10s.” Chairman Bowling said. “I cannot conceive why you would bundle those two contracts from either a technical, facilities or any other rational reason.” Bowling said “there was no reason why that would be to the benefit of the government.” Chairman Bowling said that bundling the A10 and KC-135 maintenance contracts worked “to exclude Pemco from competing and that, very likely, was the motivation behind it,” because Pemco did not have the necessary expertise to adequately do the maintenance on the A-10s.

Boeing was awarded the FY1998 contract to do the PDM work on both the KC-135s and the A-10s by Darleen Druyun. Boeing however had a great deal of difficulty starting the process of taking over the maintenance of the KC-135 contract. While Boeing had originally built the KC-135s, refurbishing the aging aircraft was a new experience for them and they had a lot of problems getting the work done. Chairman Bowling said “Boeing did have substantial difficulty in the start-up of this new contract in San Antonio. And where the Air Force would have been left completely unprepared to support the fleet if Pemco had not been pulled in with all of their experience and all of their ability to pick up on this new contract and do the work that Boeing had been contracted for. Had they not done that the Air Force readiness would have been significantly impacted.” The U.S. Air Force was very displeased with the quality of the work being done by Boeing’s San Antonio facility and delays were hampering America’s military readiness as planes were piling up in San Antonio instead of being returned to service. Darleen Druyun then ordered Boeing to split the KC-135 work with Pemco which was finishing KC-135 PDM work under their old contract. Instead of being the primary contractor, Pemco became a Boeing subcontractor. Over half of the work would be done in Birmingham and the rest would be done in San Antonio where knowledge of Pemco’s processes and methodology would help Boeing resolve problems with their in-house KC-135 PDM work.

Darleen Druyun’s improper and illegal relationship with Boeing would eventually lead to her pleading guilty and being sentenced to 9 months in federal prison. Boeing Chief Financial Officer (CFO) Michael Sears was also convicted and sentenced to four months in federal prison and fired for his improper and illegal dealings with Ms. Druyun, whom he had made a Boeing Vice President in exchange for an extremely favorable tanker contract. Boeing never admitted any guilt but CEO Phil M. Condit was forced to resign and the company agreed to pay the United States Government a fine of $615 million.

Pemco lost that 1998 ten-year contract to be the primary contractor on the KC-135 PDM contract, but was able to salvage their business by becoming a Boeing subcontractor. This, however, would not be the end of Pemco/Alabama Aviation’s problems with The Boeing Company.

To Be Continued

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Brandon Moseley is a senior reporter with eight and a half years at Alabama Political Reporter. You can email him at [email protected] or follow him on Facebook. Brandon is a native of Moody, Alabama, a graduate of Auburn University, and a seventh generation Alabamian.

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Health

Three mental health crisis centers coming to Mobile, Montgomery and Huntsville

“Today marks a culture change in Alabama for treatment of individuals with mental illness and substance use disorders,” Mental Health Commissioner Lynn Beshear said.

Eddie Burkhalter

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Gov. Kay Ivey Press held a press conference with Alabama Dept. of Mental Health Commissioner Lynn Beshear for the announcement of Crisis Center Awards Wednesday, October 28, 2020 in Montgomery, Ala. (Governor's Office/Hal Yeager)

Gov. Kay Ivey on Wednesday announced an $18 million project to create three new mental health crisis centers to be located in Mobile, Montgomery and Huntsville. 

These centers, once in operation, will reduce the number of people suffering from mental health crises who are hospitalized or jailed, Ivey said during a press briefing in front of the Capitol Building in Montgomery. 

“When these facilities are open and fully staffed, these centers will become a safe haven for people facing mental health challenges,” Ivey said. 

Lynn Beshear, commissioner of the Alabama Department of Mental Health, said during the briefing that the centers will provide “recovery based” care with “short term stays of a few hours, or up to a few days, to provide treatment, support, and connection to care in the community.” 

“Today marks a culture change in Alabama for treatment of individuals with mental illness and substance use disorders,” Beshear said. 

Beshear said AltaPointe Health in Mobile will operate one of the three facilities, and once built it is to serve Mobile, Baldwin, Clarke, Conecuh, Escambia, Monroe and Washington counties with 21 new beds, including 15 temporary observation beds. Altapointe will begin with a temporary space while constructing the new facilities, she said. 

Beshear said the Montgomery Area Mental Health Authority is partnering with the East Alabama Mental Health Authority and the Central Alabama Mental Health Authority to serve the 11 counties in Region 3 with 21 new beds, including 10 temporary observation and respite beds. 

“The regional crisis center will be located in Montgomery, and will be open to walk-ins and for drop off by law enforcement, first responders and referrals from emergency rooms,” Beshear said. 

Wellstone Behavioral Health in Huntsville was selected to open the third center, and will do so at a temporary site while a new facility is being built, with the help of an additional $2.1 million from local governments, Beshear said. That facility will eventually have 39 beds, including 15 for temporary observation and 24 for extended observation.

“There’s not a day that goes by that after-hours care is not an issue in our state,” said Jeremy Blair, CEO of Wellstone Behavioral Health, speaking at the press conference. “And so I applaud the Department of Mental Health and the leaders for their efforts in recognizing that and taking it a step further and funding our efforts here.” 

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Asked by a reporter why a center wasn’t located in Jefferson County, one of the most populous counties with a great need for such a center, Ivey said those residents will be served in one of the other regions. 

“Plans are underway to continue this effort. Today’s beginning, with these three crisis centers, is just the beginning,” Ivey said. 

Ivey added that request for proposals were sent out for these three centers and “it was a strong competition for the location of these three crisis centers.” 

Alabama House Majority Leader Nathaniel Ledbetter, R-Rainsville, said during the briefing that more than a year ago, Ivey asked him what the state should be looking at, and that he replied “we’re failing miserably in mental health.”

Gov. Kay Ivey Press held a press conference with Alabama Dept. of Mental Health Commissioner Lynn Beshear and House Majority Leader Nathaniel Ledbetter for the announcement of Crisis Center Awards Wednesday, October 28, 2020 in Montgomery, Ala. (Governor’s Office/Hal Yeager)

Ledbetter said Ivey asked him to take on the challenge of correcting the state’s response to mental health, and a team was created to do just that. 

“Working together, today’s announcement will not only change Alabamians lives, but will help to save lives,” Ledbetter said.

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Health

Ainsworth returns to work after testing positive for COVID

Ainsworth’s office on Sept. 21 announced he had tested positive earlier that week, having been tested after someone in his Sunday school class tested positive for the disease. 

Eddie Burkhalter

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Lt. Gov. Will Ainsworth speaks during a video message. (LT. GOVERNOR'S OFFICE)

Alabama Lt. Gov. Will Ainsworth on Wednesday announced that he was returning to work that day and had met public health requirements for quarantining after testing positive for COVID-19 some time last week.

Ainsworth’s office on Sept. 21 announced he had tested positive earlier that week, having been tested after someone in his Sunday school class tested positive for the disease. 

“While many have battled with coronavirus, my symptoms never progressed beyond some mild congestion that I usually experience with seasonal allergies,” Ainsworth said in a statement. “During the quarantine period, I participated in several Zoom calls, caught up on some office work, spent some quality time with my family, and completed a number of overdue projects on my farm.”

Members of Ainsworth’s staff who were in close contact with him haven’t tested positive for COVID-19 but will remain in quarantine for a full 14-day period as a precaution, according to a press release from Ainsworth’s office Wednesday. 

“Ainsworth once again urges all Alabamians to practice personal responsibility, which may include wearing masks, maintaining social distancing whenever possible, and taking other precautions to lessen chances of exposure to COVID-19,” the press release states.

Ainsworth still disagrees with Gov. Kay Ivey’s statewide mask mandate, he said. According to the release, he considers such orders “a one-size-fits-all governmental overreach that erodes basic freedoms and liberties while removing an individual’s right to make their own health-related choices.” 

The wearing of cloth or medical masks has been proven to inhibit the spread of COVID-19 and the more people who wear masks, the better. While not perfect, masks limit the spread of respiratory droplets that may contain infectious virus shed from the nose and mouth of the mask wearer.

It is possible — even likely — for symptomatic, pre-symptomatic and mildly symptomatic people to spread the virus. That’s why it’s important to wear a mask even when you’re not sick.

Cloth masks offer only minimal protection from others who are not masked, meaning that masks are not simply a matter of personal safety but safety of others. Masks are also only effective when worn over both the mouth and the nose. [Here’s a guide on how to wear masks properly.]

VIA UAB

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Dr. Deborah Birx, coordinator of the White House’s coronavirus task force, told Ivey after she announced the statewide mask order that it was a “brilliant” idea. The order has been credited by Alabama infectious disease experts as having dramatically reduced the number of cases, hospitalizations and deaths in the weeks after the order went into effect. 

Dr. Don Williamson, president of the Alabama Hospital Association, told APR on Tuesday that from personal observation he is seeing more people not wearing masks, or wearing them improperly, and said the state could dramatically reduce the risk of COVID-19 if the public regularly wore masks and wore them properly.

Hospitalizations of COVID-19 patients in Alabama on Monday crossed the 1,000 mark for the first time since Aug. 31 — a sign that Alabama may be headed for another peak in hospitalizations as the state prepares for winter and flu season.

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Elections

Faith in Action Alabama calls on law enforcement to protect voters from harassment

“In these harrowing days it is incumbent upon all of us as citizens and you and your colleagues as law enforcement professionals to do all we can to maintain this right secured by so much courage and sacrifice.”

Micah Danney

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(STOCK PHOTO)

Nine clergy members from across the state have signed an open letter calling on local and state law enforcement to protect voters against intimidation and harassment at the polls.

The clergy are leaders in Faith in Action Alabama, a regional association of Christian congregations affiliated with the national group Faith in Action, the largest grassroots, faith-based organizing network in the country. It seeks to address a range of issues like gun violence, health care, immigration and voting rights.

This is their letter:

Across our country and here in Alabama, it is being seen that citizens are turning out in record numbers to vote early and by absentee ballots. It is very heartening to see so many of our fellow citizens energized and committed to exercising that most fundamental and critical duty of citizenship, the use of their franchise.  As servant leaders of an ecumenical association of nearly 2,000 faith communities across our state we are certainly encouraging our congregants to fulfill this duty either through early, absentee or day of election voting. For us this is not only part of our civic duty, but as people of faith obligation as well.

Unfortunately, it it also largely known that there are forces in our country that are actively, publicly and fervently at work to suppress the votes of some of our fellow citizens. We write to implore you to use the full authority of your office and department to ensure that those who seek to vote, especially on November 3, 2020 are not assailed or intimidated by illegal harassment in their polling places. We believe these threats are pervasive enough and real enough that proactive measures should be in place as citizens come to vote throughout that day. The strong, visible presence of uniformed legitimate law officers will hopefully prevent any attempts at confrontation or intimidation and violence.

The history of our state is marked by the efforts of tens of thousands of Alabamians who marched, protested, brought legal actions, shed their blood and some even gave their lives that every citizen of this state might have full and free access to the ballot box. In these harrowing days it is incumbent upon all of us as citizens and you and your colleagues as law enforcement professionals to do all we can to maintain this right secured by so much courage and sacrifice.

Please be assured of our prayers for you and the men and women of your department who have the awesome responsibility of providing public safety and equal protection under the law for every Alabamian. If we, the members of Faith in Action Alabama’s Clergy Leadership Team, can be of assistance please do not hesitate to call upon us.

Sincerely,

Rev. Jeremiah Chester, St. Mark Baptist Church, Huntsville

Rev. David Frazier, Sr., Revelation Missionary Baptist Church, Mobile, and Moderator, Mobile Baptist Sunlight Association

Bishop Teresa Jefferson-Snorton, Fifth Episcopal District of the Christian Methodist Episcopal Church

Bishop Russell Kendrick, Episcopal Diocese of the Central Gulf Coast

Bishop Seth O. Lartey, Alabama-Florida Episcopal District of the African Methodist Episcopal Zion Church

President Melvin Owens, Alabama State Missionary Baptist Convention

Bishop Harry L. Seawright, Ninth Episcopal District of the African Methodist Episcopal Church

Dr. A.B. Sutton, Jr., Living Stones Temple, Fultondale

Father Manuel Williams, C.R., Resurrection Catholic Missions of the South, Montgomery

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National

Report: Alabama’s Black Belt lags behind state in economic prospects

Black Belt counties lag behind others in economic prospects and investments in businesses.

Eddie Burkhalter

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(APR GRAPHIC)

It took Marquis Forge five years and 18 banks before he and his partner were able to open their company, Eleven86 Water, in Autauga County, just north of the Black Belt, and a report released Tuesday shows how Black Belt counties lag behind others in economic prospects and investments in businesses. 

Forge, a former University of Alabama football player, told reporters during a briefing Monday that he considers Autauga County, which borders the Black Belt’s Lowndes County, part of the Black Belt, and said it shouldn’t have been so difficult to access the capital needed to start a business. 

The report released Tuesday by the University of Alabama’s Education Policy Center titled “Black Belt manufacturing and Economic Prospects” is the last in the center’s Black Belt 2020 series, and found that only four of the state’s 24 Black Belt counties, as defined by the center, are above the statewide average of 22.4 businesses per 1,000 residents, and just one, Montgomery County, was above the 2018 statewide average of personal income of $43,229. 

Researchers also found that just three Black Belt counties are above the state’s average in gross domestic product being produced by counties of $45,348. 

“To achieve Governor Ivey’s ambitious goal of 500,000 a million more Alabama workers with skills by 2025, all hands have to be ‘on deck.’ It will require higher labor force participation rates, particularly in the Black Belt, where the average is 20 points below the statewide average,” said Stephen Katsinas, director of the university’s Education Policy Center and one of the authors of the report. 

“Due to smaller economies of scale, our approaches to  education, workforce development, and community building will have to be different to reach Alabama’s Black Belt,” Katsinas continued. “In the longer term, we first must define the Black Belt, because you can’t measure what you can’t define. Then we must do what West Alabama Works is doing–go where the people are to bring hope by connecting them to a well-aligned lifelong learning system that makes work pay.”   

Donny Jones, COO of Chamber of Commerce West Alabama and Executive Director of West AlabamaWorks, told reporters Monday that one of the keys to helping the Black Belt will  be helping state and Congressional legislators understand the nuances of rural Alabama. 

Jones said the state should look at how colleges are graded, and that many smaller colleges don’t get credit for putting students through programs that get them short-term certificates that lead to jobs. 

“Those are some of the things on the statewide level that we can really start to work on,” Jones said, adding that they’ve already begun teaching modern manufacturing in Black Belt high schools that gives students college credits toward an associates degree while still in high school. 

“I think that’s very important for individuals to understand the impact that we can have in our higher ed and our K-12 system, really works hand in glove to move the needle for workforce development,” Jones said. 

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Jim Purcell, State Higher Education executive officer of the Alabama Commission on Higher Education, told reporters that it’s also important to look at one’s own community and identifying what is “unique and special,” and said he was recently in Autauga County, where he is from, and bought two cases of Eleven86 Water because he remembered how good the water there was. 

“I think that’s what you’ve done, is you’ve taken the gift that Autauga’s environment has and enhanced it, so that the people can benefit from it,” Purcell said to Forge. “I think that’s the key.” 

Asked what he’d tell state legislators to spur them to make changes so that other entrepreneurs wouldn’t have to struggle as hard as he did to open a business, Forge said he would ask for a clearer path for assistance. 

“Instead of digging down through a tunnel with a spoon I would have someone outline the tracks on getting funds and assistance from local, state and the national level, because there are funds out there,” Forge said. 

After going to 18 banks to get the financing he needed, he still had to liquify all his assets to make it happen, Forge said. 

“How many people are going to do that?” he asked. “We shouldn’t have to do that.”

To read all of the Education Policy Center’s reports on Alabama’s Black Belt, visit here.

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