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Many unanswered questions about Hoyer, $18 million Recovery.gov redesign award

By: Mark Tapscott
Editorial Page Editor
07/11/09 6:02 PM EDT

One of the great things about journalism is that you never know where a story is going to lead. So it was earlier this week when I saw a notice that the federal government had awarded an $18 million, multi-year contract to redesign the Recovery.gov web site to Smartronix, an obscure Maryland firm.
 
Recovery.gov is the federal government's web site that is supposed to provide up-to-date data on how funds are being spent under the $787 billion economic stimulus bill that was approved by Congress in February. The site has been criticized by folks across the political spectrum for being full of praise for the Obama administration but lacking in timely data on recovery spending.
 
A private sector site, Recovery.org, has been praised as providing far more and more timely info at far less cost.  That site is maintained by Onvia, a Seattle-based firm that tracks federal spending.
 
The amount struck me as excessive, even for a government web site, the multi-year duration also seemed a bit  odd, and a quick scan of the Smartronix web site disclosed that it was a defense firm that had received more than $260 million in federal contracts, but with no obvious claims to special experience or skills for web site design. So I queried my colleagues on the Examiner's commentary staff.

Within five minutes, David Freddoso emailed back the news that several Smartonix executives had made $19,000 in contributions to House Majority Leader Steny Hoyer since 1999, and that it appeared those were their only contributions. I was quite surprised, having been an admirer of Hoyer since my years at the U.S. Office of Personnel Management (OPM) during the Reagan administration.

Hoyer is a Maryland Democrat who represents a district that includes many federal installations and thousands of active and retired federal career civil servants. So he was among the House Democrats with whom OPM most frequently dealt. Hoyer is a 70s generation liberal, an exremely adept politician whose career has been free of taint. We had even editorialized shortly after the 2006 election that Hoyer, who is known for being a master legislative operator, would make a far better House Speaker than Nancy Pelosi.

But, the FEC records were clear, so we had to start asking questions. And we got predictable answers. A spokesman for Recovery.gov told David that Smartronix was one of only three bidders and that the contract required design of a sophisticated web site with many advances over the existing site. And Stephanie Lundberg, Hoyer's spokesman as House Majority Leader said the Hoyer office didn't know about the contract award until the evening of the day it was first reported.

So we put up apost with a headline that included a reference to the "Hoyer-linked firm." That's when Lundberg went off, thus beginning a very interesting conversation about whether the headline was accurate. In a series of emails and telephone conversations, Lundberg insisted that Hoyer didn't know about the award until it was announced and therefore the headline reference was inaccurate.

She was further enraged when a number of bloggers and cable news outlets picked up the story and began asking questions.  I rejected her demand that we change the headline to remove any Hoyer reference, but assured her that we would give her concerns a full description, as we did.

But then Lundberg said something that really sparked my curiousity, namely that Smartronix was "just a small company in our district, in St. Mary's County, they have no political involvement, they were just supporting their hometown congressman." And she asserted that "these guys are not big players trying to “buy” influence anywhere they can. They support Congressman Hoyer for the reasons many people support their local Congressperson  - because they believe he does a good job representing the district or they share his views on issues. There is nothing wrong or bad about them contributing to Congressman Hoyer."

When I then asked Lundberg if her assessment was conjectural on her part or based on direct knowledge, she refused to answer, saying instead: "Is your assessment of there being anything more than a coincidental link between the contract and the contributions based on direct knowledge or conjecture?"

She quickly sent a second email response, adding: "Furthermore, we DO have direct knowledge that they did not support him because of this contract. So if that is your test, your story should be taken down."

To which I responded, asking: "When did you talk to the three Smartronix execs about the reasons for their substantial contributions? Did they initiate that conversation or did you? Where did it take place, in your congressional office or outside? When did it take place? Was Mr. Hoyer aware of it before, during or after? Was he present at the discussion?"

No response.
 
Those are extremely relevant questions since Lundberg's statement makes clear that there is indeed a relationship between Hoyer and Smartronix. The nature of that relationship is of interest because there is no FEC record of political donations by the Smartronix executives to any other federal office holder, the $18 million award and the RFP that produced it are raising multiple eyebrows among knowledgeable web designers, Smartronix refuses to discuss the controversy and Lundberg refuses to clarify the nature of the relationship between her boss and Smartronix.
 
Stay tuned.
 




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Reader Comments

All comments on this page are subject to our Terms of Use and do not necessarily reflect the views of the Examiner or its staff. Comment box is limited to 250 words.

renoman

Jul 11, 2009

Fox News picked up on this also...Greta Van Sustern covered it quite extensively and I agree. The amount of money is excessive and ridiculous. Hoyer was on Fox News Sunday and gave evasive answers concerning the results of the excessive stimulus package also and why unemployment is so high!!!

 

come on

Jul 12, 2009

Leave Obama alone! This recovery.gov website is the most transparent thing to ever happen to the federal government, and you people are trying to ruin it.

 

Mark Tapscott

Jul 12, 2009

Note to "come on" No, we are trying to make sure that the idea of transparency via posting government documents and data on easy-to-access web sites is not discredited by politicians who only want to use them as propaganda tools without actually disclosing important information in a timely manner.

 

Randy Watts

Jul 12, 2009

If the recovery.gov website was a Hoyer earmark, then it is a symbol of the Obama administration's waste and corruption, not transparency. I applaud the Examiner for trying to get the truth, not covering up this administration's misdeeds like the rest of the media.

 

Carole

Jul 12, 2009

So much government corruption, so few inquisitive reporters. I salute you for asking just simple questions. For me, an everyday citizen, it is like a breath of fresh air.

 

Stefan Kristen

Jul 12, 2009

Mr. Tapscott: My wife, who writes software professionally and believes the figure to be out of proportion with actual costs, asks a pertinent question. "What does Amazon spend to write and maintain their software"? What would a reasonable figure be for such a massive undertaking? Why don't you ask someone with experience? Perhaps that would afford us a frame of reference. Thank you.

 

RogueWave

Jul 12, 2009

Has anyone asked Recovery.org what they spent for the better mousetrap?

 

TexMarty

Jul 12, 2009

Whenever one exams bribes, payoffs or kickbacks involving a democrat congressman, it is always prudent to examine whether the money trail goes through a relative's fingers.

 

artless

Jul 12, 2009

When will you people get it? If the man is a member of either major party, he is nothing but a tool for his campaign contributors. And the biggest tool today sits in The White House. Just follow the money.

 

PTAMomfromMaryland

Jul 13, 2009

Eeekkk... I am disappointed to hear this. When Nancy Pelosi tried so hard in 2006 and failed to make Jack Murtha the #2 person in the House instead of Steny Hoyer as #2 (as seniority dictated) ... I thought for sure it was a corrupt Pelosi wanting a corrupt Murtha at the #2 position. I still believe that Pelosi and Murtha use corruption as an effective tool to retain power, but I still think Steny Hoyer is a better man than this. I often wonder what kind of arm twisting pressures Obama is exerting (Chicago politics style) on various Democratic politicians to pay back his supporters. I would be interested to know if there are any links between Smartronix and Obama or the Obama White House people.

 

StargazerInSavannah

Jul 13, 2009

This program will certainly stimulate contributions to the Hoyer treasury. Much like the $16,000,000 going to SFO to save the 'endangered salt marsh mouse'. The only thing the 'stimulus' package will guarantee is that the supporters of the Administration profit from the contributions they made. Follow the money, the purpose of the Stimulus is to establish a National Socialist government to last a thousand years... Sound familiar?

 

Lee

Jul 13, 2009

It appears that this was a competitive procurement. Can the Examiner get a copy of the RFP to determine the scope? Also it would be useful to know who else bid against them. As much as this looks bad, it may have actually been a legitimate win--we can't tell yet from the data available. Please keep up the investigation.

 

Frank Fingers

Jul 13, 2009

http://www.smartronix.com/ABOUTUS/News/21October2008/tabid/188/Default.aspx I wonder if there was any mention of this website's number (a Joe Joke) during this meet n greet?

 

Re: Robert Shea

Jul 13, 2009

Could it be that the relationship isn't via Hoyer. There's a Robert Shea who is ass't director of the OMB, and another with the same name who is EVP of Corporate Strategy and Solutions. Could it be a Jr./Sr. relationship?

 

This is not a story

Jul 14, 2009

You folks are waisting your time worrying about this contractor and this contract. And your exuberance proves your lack of insight. There were only 3 responders to the bid, no one wanted this contract.

 

Ckko

Aug 10, 2009


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