Nuclear Security & Deterrence Monitor Vol. 23 No. 01
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Nuclear Security & Deterrence Monitor
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January 04, 2019

SASC Members Mixed on Concern over Shanahan’s Past at Boeing

By Vivienne Machi

Acting Defense Secretary Patrick Shanahan’s past as a senior Boeing executive has some Senate Armed Services Committee members concerned over potential ethics issues, while others feel his defense industry experience is a plus.

Shanahan, who was sworn in as deputy defense secretary in July 2017 and became acting defense secretary Jan 1. after President Trump removed retired Marine Gen. James Mattis from the post, has recused himself from any matters involving Boeing for the remainder of his time at the Pentagon. That has assuaged unease over potential ethics issues from some senators, while others said Jan. 3 that they remain concerned.

Sen. Deb Fischer (R-Neb.), who chairs the Senate Armed Forces emerging threats and capabilities subcommittee, said she had no concerns about Shanahan’s past at Boeing affecting his current position.

“I have met with the acting secretary a number of times,” she told reporters. “We have had briefings in classified sessions together, one on one. He is well qualified, he knows what he’s doing, and I have no concerns whatsoever.”

Armed Services Ranking Member Jack Reed (D-R.I.) told Defense Daily that Shanahan’s past at Boeing “complicates his job significantly” due to the company’s position as a major defense contractor.

Reed noted that he believes Shanahan is “very sincere in his commitment” to the Pentagon and his post, but “he might have to avoid making decisions which typically are made by a secretary of defense.”

Boeing, the prime on the existing fleet of nuclear-armed Minuteman III intercontinental ballistic missiles, is developing technology for a Minuteman replacement, under a three-year, $350 million Pentagon contract awarded in 2017. The company is competing against Northrop Grumman to advance designs for the next-generation intercontinental ballistic missile.

Sen. Richard Blumenthal (D-Conn.), who sits on the Armed Services  seapower, airland and cybersecurity subcommittees, said he is concerned about Shanahan’s “connection with the defense industry and his close connection with contractors,” but did not want to speculate on how the acting defense secretary would fare if Trump nominated him for the position.

Sen. Jeanne Shaheen (D-N.H.), a member of the emerging threats and capabilities, seapower and readiness and management support subcommittees, said she hasn’t seen any issues over the last two years of Shanahan’s tenure at the Pentagon that have caused her concern.

“He has been in a position under former Secretary Mattis to … understand how the department runs and to make good decisions,” she added. “Hopefully that will continue.”

Senate Armed Services cybersecurity subcommittee Chair Mike Rounds (R-S.D.) said Shanahan has “done well” at the Pentagon and he would not have an objection to him being considered for the official defense secretary position.

“As long as he is clearly identifying where there may be a conflict, then he can work his way around those areas,” Rounds told reporters. “But I would rather have somebody with lots of experience than somebody who comes in brand new and makes the mistakes of somebody without any experience.”

This story first appeared in Nuclear Security & Deterrence Monitor’s affiliate publication, Defense Daily.

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