Controversy won’t keep defense firms away from Murtha

Controversy won’t keep defense firms away from Murtha

By Roxana Tiron

Rep. John Murtha (D-Pa.) may be surrounded by controversy these days, but he remains chairman of one of the most powerful appropriations committees in Congress and the defense industry is not about to forget that. Many are lining up to attend and sponsor an industry show that Murtha conceived two decades ago. The Showcase for Commerce has become an annual draw for those in defense circles who know that Murtha, chairman of the defense appropriations panel, has influence that in some cases could make or break their business. Murtha is “a very important ingredient to the show,” said Linda Thomson, president of the Johnstown Area Regional Industries (JARI) organization. JARI and the Cambria County Chamber of Commerce organize the event. One of the key aspects of the event is that smaller companies get to network with the larger companies and vie for a chance to work together. Defense industry sources say that while they are somewhat troubled by news regarding ongoing federal criminal investigations into contractors and lobbyists close to Murtha, they are not at all deterred from attending the annual event, which is set for May 27-29. More than 170 companies will spend roughly $300,000 to get face time with Murtha. Several of the companies that are reportedly under investigation have registered, including Kuchera Industries, Concurrent Technologies Corp., Electro-Optics Center at Penn State University, and ProLogic. One notable absence may be Paul Magliocchetti, the founder of the former PMA Group, who is reportedly under investigation for illegal campaign contributions to lawmakers and is no longer working as a defense lobbyist. PMA and its clients were Murtha’s top campaign contributors. Murtha doled out a large number of earmarks for those companies. Murtha has not been accused of any wrongdoing in relation to any of the firms under investigation. Those who have attended the show in past years describe it as a show-and-tell for anyone who wants to get on Murtha’s radar. As one lobbyist put it, it’s an opportunity for companies large and small to show their products to Murtha, rather than rely solely on briefings or hallway conversations. Showcase for Commerce, in its 19th year, is a symbol of Murtha’s power: a once hard-hit former steel town, Johnstown has transformed into one of the defense industry’s major regional hubs. What started with a few folding tables at a hotel is now one of the country’s most popular technology trade shows. Defense giants General Dynamics, Lockheed Martin, Boeing, Northrop Grumman, Raytheon and BAE Systems now sponsor the show, alongside contractor DRS Technologies, which has strong ties to Johnstown and Murtha. This year’s show kicks off on Wednesday with a golf tournament heavily attended by defense lobbyists and other defense industry officials. While Murtha does not play, he usually stops by for lunch. But the veteran lawmaker has his own headline event: a breakfast on May 29 sponsored by General Dynamics. Usually Murtha at the show announces several contracts that pair local companies with the defense giants. Thomson said that none of the controversy that Murtha has attracted in recent months is affecting the show’s turnout. “I do not think any of that is a factor for the show,” Thomson told The Hill. “This show has been a way to get companies together and talking and see how they can do business with one another. We have more people on the waiting list than normal and nobody is really talking about that [controversy].” According to Thomson, 173 companies registered for booth space and about 10 are on the waiting list. The hotels housing participants are basically sold out, she said. The rate for companies to register for a booth is between $1,000 and $2,000, while attendee packages cost $300. “Even with the downturn in the economy, we are expecting full capacity crowds and significant contract announcements at the event,” said Murtha spokesman Matthew Mazonkey in a statement. “Really the only difference this year is that Congressman Murtha is coming off of a recent knee replacement, but he’s committed to visiting every booth and promoting productive partnerships that are good for jobs, customers and taxpayers.”