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Porter's defense firm ties revealed

Contributions from Virginia contractor's affiliates top $30,000







Rep. Jon Porter's biggest contributors this election cycle have links to Southern Nevada's best-known companies: MGM Mirage, Tiberti Construction, Station Casinos, and Harrah's Entertainment.

But it's a Virginia-based defense contractor near the top of Porter's donor list that stands out.


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  • Individuals affiliated with Progeny Systems Corp. have contributed about $30,000 to Porter, the second most they've given to any member of Congress since 2006, according to a Review-Journal analysis of campaign finance data.

    During that period, Porter co-sponsored federal earmarks in March 2007 and March 2008 helping steer $5.5 million in funding to Progeny for ongoing work related to unmanned aerial vehicles, congressional records show.

    Progeny is headquartered in Manassas, Va., but has a small office employing four people in Porter's 3rd Congressional District.

    Republican Porter said in an interview that Progeny's campaign contributions had nothing to do with his support of the company's project, which he said could "impact" the jobs of 600 employees who work on Predator operations at Creech and Nellis Air Force Bases.

    "In the scope of things, those contributions aren't going to make or break a campaign," said Porter, who's raised about $2.5 million this cycle, outpacing his challenger, Democratic state Sen. Dina Titus by nearly 2-to-1. "I think (the project) is important for the safety of Nevada and the rest of the country. It has the potential to save hundreds of thousands of lives."

    But Keith Ashdown, chief investigator at Taxpayers for Common Sense, a nonpartisan research group based in Washington, said the earmarks to Progeny are the type that raise questions about relationships among politicians, lobbyists, and companies.

    "All we know right now is that the congressman got a lot of financial support from a company he's obtained earmarks for," Ashdown said.

    The goal of the Progeny project is to create a compatible set of remote controls for unmanned air systems, many of which are deployed in Iraq and Afghanistan. The program hasn't made the cut for funding through normal appropriations. That's where earmarks come in.

    The ties between Porter and Progeny include one of the company's lobbyists, the Tim Hugo Group, which is run by a Virginia state legislator to whom Porter contributed $1,000 last year. Porter described Republican Hugo as a longtime friend, and Hugo was listed as a contact person on Porter's earmark requests.

    The earmarks to Progeny and contributions to Porter by company officials provide a stark example of a common practice.

    Earmarks are funds set aside for specific projects or programs, usually in a certain congressional district. A bill sponsored by Sen. John McCain of Arizona that sought a one-year ban on earmarks failed to pass the Senate earlier this year.

    Defenders say most earmarks go to worthwhile ventures that create jobs in home districts.

    In 2006, the year Progeny ratcheted up lobbying efforts and increased its contributions to Porter's campaign, the privately held company opened a facility at an office park in Henderson.

    Walter Kitonis, Progeny's president and chief executive officer, said his company opened the Henderson office with an eye on applying some of its technologies to the casino industry.

    On a recent weekday afternoon in September, only one person was in the sparsely furnished office on Green Valley Parkway.

    Kitonis said the company, which had revenues of about $100 million last year, plans to hire another 10 people after government funding for the defense project comes through. The Navy still hasn't made the earmarked funding available, he said.

    Kitonis, a former executive at Lockheed Martin, said he and others connected to his company made contributions to Porter because they feel his seat is in jeopardy. "I think Jon's a good guy, so when I get to know somebody, I give them money to keep doing what they're doing," he said.

    A recent Review-Journal poll shows Porter and Titus locked in a tight race.

    Nevada has traditionally ranked among the top recipients of federal earmarks per capita, according to Citizens Against Government Waste, a Washington watchdog group.

    Senate Majority Leader Harry Reid had his name on nearly $1 billion in earmark requests in fiscal year 2008. Reid co-sponsored one of the Progeny earmarks, but nobody from the company has given money to his campaign.

    Porter's earmarks in fiscal year 2008 totaled about $20 million.

    It was Reid, not Porter, who publicly announced the initial $3 million contract for the Progeny project.

    But Porter took the lead in asking for the money. He didn't have a role in ultimate approval. The key in that phase was Rep. John Murtha, D-Pa. In the past two years, Murtha has been the only member of Congress to receive more campaign contributions than Porter from Progeny.

    Kitonis said earmarks are the best way for smaller companies like his to secure government contracts: "The big guys are all about money. Our challenge is to build things that cost less."

    Tax watchdog Ashdown commented, "It's fair as long as the earmark provides Nevada jobs, but if the contract the company got is lining the pocket of someone from Virginia, and I'm a constituent, I'm going to have a problem with that."

    Stephens Washington Bureau Chief Steve Tetreault contributed to this report. Contact reporter Alan Maimon at amaimon@reviewjournal.com or 702-383-0404.

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    Jay Dee wrote on October 21, 2008 02:05 PM: Defense Geek,

    I could not have said it better myself. This article does not mention the billions of dollars that Progeny, (like many other small hi tech compaines around the country) have saved the taxpayers through forced competition (against large monopolized contractors which consume the majority of spending in our country) to produce superior products for 1/4 of the price.

    When are people going to stop breathing in every misleading article that they read? People---- wake up! You are being spoon fed a bunch of sensationaled/politicized crap. Everyone has an agenda- unfortunately, you have to look a little bit further than the daily newspaper for the truth.

    Would you rather have career beauracrats in DC making decisions about how to spend taxpayer money or your representative in government? I think that the latter is what the constitution intended. Earmarks generate competition and produce superior technology in all industries across the country.

    If you want to really make a difference in government spending/waste, look at the top 5 defense contractors and see how they do business with the US Government. Earmarks are only chunk change by comparison.


    defensegeek wrote on October 21, 2008 12:34 PM: I work in the defense industry. And I have worked for both large and small companies. It’s interesting to see that every article related to earmarks is about the underlying accusation that the politician and the company have done something bad. When will someone write an article about the success of earmarks and how they truly drive change? If it weren’t for earmarks, there would be no UAVs. We would have lost more people at war. We would still be buying toilet seats for $1500. Earmarks are a way to enable change and challenge war profiteers. Instead of jumping to conclusions and villanizing those people trying to make change, try to understand their rationale. Better yet, why not do a story on the $20-30M worth of political contributions that Lockheed and General Dynamics each make every year in order to maintain status quo to stay the course and profit from avoiding change. Take a look at the Airforce F-35 which is in constant overrun, will cost $1 Trillion of the tax payer’s money, and is built to fight a cold war threat. Even though the company in this article didn’t get the money yet, they do have people working at offices and bases in Nevada. Jon should be commended for his efforts to capture some of the $500B defense budget and bring it back to Nevada to create jobs and change the way government spends defense dollars. If you think about it, if things go well with the UAV program, we can all get a refund by shutting down an unnecessary F-35 program.


    Grump wrote on October 21, 2008 09:33 AM: What the story did not disclose is the very close proximity between Porter asking for earmark and getting contributions from Progeny's principals and their families! Very, very, very close proximity!

    Like Senator Reid, Congresswoman Berkley also asked for earmarks for Progeny BUT neither of them received a penny in contributions from Progeny or family members related to the owners.

    Lastly, Murtha is NOT the only one that approved these requests but two Republican chairman of the committees just a few years ago...like Congressman Jerry Lewis of CA (who as of a few weeks ago has spent $1,000,000,000 on legal fees).


    Jeremy wrote on October 21, 2008 08:47 AM: Put him out on his ear. If $30k doesn't "make or break" a campaign and if you are sincere about being transparent about not selling your services (and our money), then don't accept the money, Porter.

    Remember things like this and the $700,000,000,000 bailout he voted for when you go to the polls. This isn't a partisan issue, this is an American issue.


    Susan wrote on October 21, 2008 08:31 AM: This Jon Porter is using his position to get $$ for himself. Yet the R-J just endorsed this corrupt s.o.b. on Sunday. We should do our part and vote him out of office. You can go do it today, in fact.


    Jerry Mac wrote on October 21, 2008 08:27 AM: Wayne:

    Name one Federal Congressman that has not received donations from an out-of-state company that he has supported (albeit loosely used) “via ear marks (sic).” In addition, why does it matter whether it is in-state or out-of-state? Is in-state corrupt and out-of-state not?

    For all of its fallacies, this is how our federal system works. This is not corruption. If it were, Porter should be in jail.


    addie wrote on October 21, 2008 08:22 AM: Does McCain know about Porter's PORK spending?


    The Most Wasteful, By Far, of Taxpayer Dollars wrote on October 21, 2008 08:08 AM: The R-J editorials kvetch about government waste, but you never hear them attack the most wasteful, by far, government entity:

    the military industrial complex that Ike warned us about is his farewell address.

    Instead, the R-J goes after those hobgobblin Clark County teachers.

    So Porter is closely tied to the biggest waster of taxpayer dollars there is, and the biggest beneficiary of corporate welfare.

    Surprise!


    Wayne wrote on October 21, 2008 07:46 AM: Jerry Mac "To succeed, every politican (sic) - regardless of affiiation (sic) - must have an impressive donor list."

    The problem is when the donor list includes an out of state company that just got a huge contract via ear marks. That doesn't just look corrupt . . . it is.


    Harry wrote on October 21, 2008 07:34 AM: Another greedy public official that needs to go. The only problem is his replacement who is another greedy, ego maniac politician with a Texas twang.


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