Tim Sloan, Agence France-Presse, Getty Images Rep. John Murtha -- He uses his power to deliver federal money to his congressional district as well as to his political allies across the country.

By Jerome L. Sherman
Pittsburgh Post-Gazette WASHINGTON -- Once again, U.S. Rep. John Murtha was the man who "made it happen."

Leaders of a dozen groups -- including the Johnstown Redevelopment Authority, state and local government, and the Conemaugh Health System -- came together July 3 to break ground on the Greater Johnstown Technology Park, a $20 million development on the grounds of a defunct dairy plant.

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But only Mr. Murtha received two standing ovations.

As chairman of the House Defense Appropriations subcommittee, the 17-term Democrat is one of the most powerful politicians in Washington, and he uses that power to deliver federal money to his congressional district as well as to his political allies across the country.

It was Mr. Murtha who secured $4 million for a joint venture by Conemaugh and Northrop Grumman, a major defense company, to study the development of advanced electronic records for both military and civilian health care systems. The joint venture will be a park tenant.

Also moving in will be Virginia-based MTS Technologies, which performs millions of dollars in technology and management consulting for the Defense Department. MTS is run by Daniel T. Perkins, who, more than four decades ago, worked in Mr. Murtha's Johnstown car wash. The company already has a 50-person operation in Johnstown and plans to expand.

Johnstown locals, not surprisingly, appreciate his efforts. Critics say Mr. Murtha is too quick to use the federal purse as a development tool for the Johnstown economy, sometimes backing wasteful ventures. And not all projects deliver the promised jobs.

"When the companies are not committed to the district, but to the member who represents the district, all they're doing is paying lip service to Johnstown to get a bigger pot of money," said Steve Ellis, vice president of Taxpayers for Common Sense, a watchdog group that opposes such projects.

Downsized in Indiana County

Three years ago, Mr. Murtha attended another groundbreaking -- for an office building in Center Township, Indiana County, which was to be the future home for up to 100 employees of Aeptec Microsystems, a Maryland-based technology company that received more than $45 million in federal contracts in 2003.

But, according to the Washington publication Roll Call, the company never moved into the 63,000-square-foot building, which was built at a cost of about $7.5 million, including state and local money. Instead, Aeptec pulled back its commitment to the area. It now employs just 15 in Indiana County in a much smaller facility.

Aeptec, also called 3eTI, last year was purchased by EFJ Inc. of Texas. A company spokeswoman declined to comment on the Indiana County office because it predates the merger.

Byron Stauffer, executive director of Indiana County Office of Planning and Development, said the company first launched its local operations in 2001, expressing interest in a major expansion. But Aeptec then experienced a sharp drop in business.

"It was a good fit. They were in a growth mode," he said. "It just didn't work out for them."

The company's lobbying firm was KSA Consulting, which once employed Mr. Murtha's brother, Robert "Kit" Murtha. It currently employs Carmen Scialabba, a former staffer for the House Appropriations Committee.

According to Roll Call, KSA Consulting has also represented other companies that have a small presence in Mr. Murtha's district but receive sizeable federal contracts. They include another Maryland firm, Advanced Engineering and Planning Corp., and ChemImage, a Pittsburgh-based company.

Mr. Murtha, a Vietnam veteran, often focuses on projects that help the armed forces. He says he is more interested in quality, not favoritism for Johnstown-based companies or companies represented by family members and former aides.

"It doesn't make a difference if they move here," he said at the July 3 ceremony. "They have to be competitive."

He said he's now working with Indiana County officials to find replacement tenants for the Aeptec office building.

Representatives of the Johnstown technology park companies say they are dedicated to Johnstown, describing it as an inexpensive location with an educated workforce and strong universities. Mr. Murtha's presence is a powerful draw, they say, but not the primary one.

"I was born and raised in Johnstown, Pa. When I started MTS in 1991, my first office was in Johnstown," Mr. Perkins said in an e-mail message. "I am proud to be able to give back, in the form of well-paying jobs, to the community that supported me during my developmental years. MTS will always be committed to Johnstown."

The tech park companies conduct significant amounts of business with the federal government. Northrop Grumman, which employs more than 120,000 and earned $30.1 billion last year, had $14 billion in federal contracts in 2006, according to fedspending.org.

In 2005, 190 contractors in Mr. Murtha's district received $228 million in government projects, placing the district in just 236th place among all 435 congressional districts.

That's because large defense companies do the bulk of their business elsewhere. Northrop, for instance, has its corporate government relations offices in Arlington, Va., in the district of Rep. James Moran, a Democrat who also sits on the appropriations committee with Mr. Murtha. Mr. Moran's district ranked No. 1 on fedspending.org's 2005 list, garnering close to $17 billion in contracts.

Northrop first opened an office in Johnstown in 2005, and it plans to expand to more than 90 jobs in the city.

MTS, which employs about 300, received $132 million in contracts from 2000 to 2006. Most of its work is also performed in Mr. Moran's district.

Campaign contributors

Northrop, MTS, and Conemaugh all have contributed money to Mr. Murtha's campaigns, either through individual contributions or political action committees. Both MTS and Conemaugh have hired the Washington lobbying firm PMA Group, which has given $107,500 to Mr. Murtha since 1989, making it the lawmaker's sixth largest contributor, according to opensecrets.org.

Mr. Perkins of MTS personally has given $12,300 to Mr. Murtha's campaigns since 1993. Thomas Kurtz, a Conemaugh executive who is overseeing the tech park project, has contributed $8,250 to Mr. Murtha since 2002.

"I appreciate those who donate to my campaign and I appreciate those who are providing jobs in Western Pennsylvania," Mr. Murtha said in an e-mail message. "However, proposals provided to me are judged strictly on merit and are reviewed by members and staff of the appropriations subcommittee, full committee, and the whole House for possible funding consideration."

Mr. Kurtz said Conemaugh has no official policy on campaign donations. His contribution was a personal choice, and he has also given to Republicans, including former Sen. Rick Santorum.

"I contribute to whom I believe will best benefit the region," he said. "I've never seen a more honorable man than Mr. Murtha."

Conemaugh, with more than 4,500 employees and about 1,000 beds in four hospitals, supplies the most jobs in Mr. Murtha's district. Through his connections, the hospital system helped the Defense Department develop pain control techniques without anesthesia. That knowledge is now being used on the field in the Iraq war, Mr. Kurtz said.

Conemaugh and Northrop Grumman officials first made contact at the congressman's annual "Showcase for Commerce" event in Johnstown, which attracts many prominent defense companies. The two organizations discussed the health system's plans to build a tech park in the area.

Johnstown Mayor Don Zucco invited Conemaugh to build on the site of the Sani-Dairy plant in Johnstown's Kernville section. The plant closed in 1999.

Concerned about Johnstown's continued population loss, top Conemaugh officials saw a technology park as an important boost.

"Thirty or 40 jobs in downtown Johnstown is a big deal," Mr. Kurtz said. "Five hundred to 1,000 jobs would revitalize this local economy."

Northrop Grumman has a policy of keeping its internal information technology jobs in low-cost areas across the U.S., according to Steve Perkins, a senior vice president for legislative affairs. It is setting up smaller offices in Helena, Mont.; Lebanon, Va., and Johnstown.

Mr. Murtha's presence there is a bonus.

"It certainly doesn't hurt to have a representative like Mr. Murtha to look out for businesses and organizations in the area," said Randy Belote, a Northrop spokesman.

Northrop has been a top contributor for Mr. Murtha, giving $96,500 to his campaigns since 1989.

The company gives to both parties, Mr. Belote said.

"We always respond to requests for funding," he said. "We respond to ones who have an interest in national security issues."

It spent $53 million on lobbying from 2003-2006, employing more than a dozen firms and individual lobbyists.

Ron Repak, executive director of the Johnstown Redevelopment Authority, which is working with Conemaugh on the tech park, said he believes Northrop is committed to the city. He pointed to several Murtha-backed projects that have paid dividends, including Concurrent Technology Corp., or CTC, a non-profit organization that provides technology and management consulting to both government and the private sector.

Mr. Murtha was the primary force behind its creation in 1987. The organization, based in Johnstown, now employs 1,500 at more than 35 locations. Mr. Murtha has directed hundreds of millions in federal earmarks to CTC.

In 2005, it was the top federal contractor for Mr. Murtha's district, performing $142 million in work there.

"I think it's wonderful. I'm from Johnstown," Mr. Repak said. "We needed someone like that to help this town out."

Mr. Ellis, of Taxpayers for Common Sense, said Mr. Murtha's constituents also need to be worried about the longer term.

"The concern would be, in the not-so-distant future, Johnstown is going to be represented by a freshman, and then the bottom will fall out." Mr. Ellis said. "You don't want to get addicted to federal money."