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Thursday, November 20, 2008

L-3 replaces Boeing



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More than 200 Boeing employees working at the Naval Strike and Air Warfare Center at NAS Fallon are interviewing this week in hopes of keeping their jobs.

The NSAWC aircraft maintenance contract, previously held by Boeing, has been awarded to a new contractor, L-3 Vertex Aerospace. Boeing was initially awarded the contract in February 2001 and employs approximately 225 people, according to Chief Jeff Wells, public affairs officer for NSAWC.

While tensions are high in the Boeing shop at NAS Fallon, employees can be assured that L-3 plans to hire many of them back.

“Our objective is to keep the same number of folks,” said Dani Edmonson, manager of L-3 Vertex Aerospace public relations. “We want to make sure we keep the same quality and get the best of the best.”

Edmonson and a small team of company managers are conducting interviews this week in Fallon. She said everybody in the local Boeing shop is encouraged to apply with L-3 and said they should not be concerned about being hired at a lower wage.

“Everything should basically be the same,” Edmonson said. “It’s just a change in the patch on the shirt.”

L-3 is assuming the maintenance contract in the middle of a labor contract negotiation with the IUE CWA union, which represents the 200-plus workers. Edmonson said the labor contract is a separate issue from the NSAWC contract.

All levels of workers from the administrative staff on down must apply for jobs with L-3. Edmonson said it would be a poor business decision to eliminate workers with expertise in a specific field and retrain new employees.

“If you have good people already, why shake it up?” Edmonson said.

While some workers may have built up seniority with Boeing, that seniority will not be transferred to L-3 but will be taken into account when they interview for the new company.

“The goal is for everyone to be in the position that is the best for them and the contract,” she said.

The scope of the contract includes providing maintenance for F-16, F-18, H-60 and E-2C aircraft used by NSAWC.

L-3, which is based in Madison, Miss., will assume the contract on Jan. 1. The contract starts at one year with four one-year options NSAWC can exercise. According to the Department of Defense, the contract is valued at $19.7 million.

Edmonson said L-3 and Boeing are working cooperatively to make the transition easier for all employees. She said the two companies have a “gentlemen’s agreement” and that Boeing only wants the best for its people.

A representative from Boeing could not be reached for comment.

Other major contracts at NAS Fallon:

• Northrop Grumman was awarded an option on its five-year contract with NSAWC to provide operations, maintenance and engineering support on its training ranges. Northern Nevada Business Weekly reported Northrop Grumman has employed an average of 160 personnel over the past four year and is among the 15 largest employers in Churchill County. The contract, first awarded in 2005, is valued at $217 million over five years.

• Sikorsky Support Services, which employs about 100 people, currently holds the maintenance contract for VFC-13, the aggressor squadron based at NAS Fallon that flies F-5s. Rick Elvrom, site manager, said Sikorsky has held the contract for eight years, but it is currently out to bid again. According to the Department of Defense, Sikorsky was awarded the $6.3 million contract in February 2001 to include work at Fallon and Yuma, Ariz. Modifications totaling tens of million of dollars have been awarded since them.

• Chugach Support Services, based in Anchorage, Alaska, was awarded the base support services contract in October 2002. Kevin Hargis, project manager for Chugach, said the contract was one base year with six one-year options. Three one-year award terms were granted after the company was graded high enough to warrant the additional years.

Hargis said Chugach employs about 270 people, and the company divides the specific job functions into 15 separate annexes.

“We really just run the base for the Navy so they can do what they do best,” Hargis said.

He said the company, like many other in challenging economic times, had to downsize at one point. Chugach holds a majority of the base support services contract, but has two subcontractors, Del-Jen and Sheldon’s Pest Management Services. The value of the contract is unknown.


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