Porter’s defense firm ties revealed

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.

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.