Google Jet Fleet Loses a Pentagon Fuel Perk

[cali]

Google Inc. founders Larry Page and Sergey Brin may have to dig deeper to operate their fleet of private jets, after the U.S. Department of Defense ended a little-known arrangement that for years allowed the tech billionaires to travel on sharply discounted jet fuel bought from the Pentagon.

The agreement between the Google founders and the government, which started in 2007, ended Aug. 31 after officials at the National Aeronautics and Space Administration—which sponsored the arrangement—opted not to renew it, according to a Pentagon spokeswoman.

The move followed discussions earlier this year between the Pentagon and NASA over whether the Google founders may have exceeded contract terms by using fuel for non-government flights, according to a letter from a Pentagon official released by Sen. Charles Grassley.

Sen. Grassley, an Iowa Republican, said he is seeking an audit of the arrangement by the Pentagon's inspector general. "Are some executives getting a special deal on fuel that isn't available to other businesses?" he asked, saying the setup raises concerns about the government's role as a "fair broker with businesses and responsible steward of tax dollars."

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http://online.wsj.com/article/SB10001424127887323864604579069730686941454.html?mod=WSJ_hps_MIDDLENexttoWhatsNewsForth

[Atman]

1. The question not asked: Why did Google have a special deal with the Pentagon?

A little help with data mining, perchance? Hmm.

[JustABozoOnThisBus]

2. Supposedly helping NASA, but the "help" part is unclear

http://online.wsj.com/article_email/SB10001424127887323864604579069730686941454-lMyQjAxMTAzMDEwMjExNDIyWj.html

[jsr]

3. The rich get richer.

[bigtree]

4. that's just amazing, isn't it?

I remember NASA in the Bush years. It was a nest of Lockheed, Northrop Grumman, and Raytheon executives who kept the military corporation warriors flush with missiles and warcraft.

Bush's Chief Administrator of NASA for a time, Sean O'Keefe, who just happened to serve as Navy secretary, as well as comptroller and chief financial officer at the Defense Dept., was quoted declaring that NASA and the Pentagon were practically inseparable.

Bruce K. Gagnon, Coordinator of the Global Network against Weapons and Nuclear Power in Space, quotes O'Keefe, who was on a paid advisory board of Northrop Grumman and Raytheon, that it is "imperative that we have a more direct association between the Defense Department and NASA."

O'Keefe, continued, "Technology has taken us to a point where you really can't differentiate between that which is purely military in application and whose capabilities are civil and commercial in nature."

[petronius]

5. Looks like the arrangement allowed them to duck a state tax as well:

One reason commercial prices are higher is that they include sales tax levied by California on all fuel sales to private jets, currently 8.75% in Moffett's locale. It's unclear if H211 ever paid that tax. The Pentagon said it collected only federal taxes, and H211 was responsible for remitting any local taxes owed. H211's Mr. Ambrose said the Pentagon's invoices included "all applicable taxes."

Hope CA looks into whether any money is owed...