Smith earned millions from federal contracts

At a glance: Sen. Smith’s company and federal contracts

By Keith Chu / The Bulletin

Published: September 30. 2008 4:00AM PST

Sen. Gordon Smith, R-Ore.

WASHINGTON — Selling frozen peas and corn to the federal government has brought the northeast Oregon company co-owned by U.S. Sen. Gordon Smith, R-Ore., at least $9.4 million over the past decade, federal contract records show.

That’s one of the largest sums of federal money earned by a member of the U.S. Senate, according to records from The Center for Responsive Politics, which tracks money in government.

The contracts were awarded to Smith Frozen Foods, which Smith co-owns with his wife, Sharon. The contracts were awarded by competitive bid and have not been questioned.

Smith Frozen Foods President Kelly Brown said Gordon Smith was not involved in obtaining the contracts.

“In no way at all,” Brown said. “When Gordon was running the company, when he was here on a daily basis, he got involved in these only in that he would approve the price that I would quote.”

All of the contracts came from the U.S. Department of Agriculture and are subject to an open bidding process, according to records in the Federal Procurement Data System, which is a government database of contracts.

A U.S. Department of Agriculture spokesman, Jimmie Turner, did not respond to requests for more information about Smith’s contracts.

Smith Frozen Foods sells frozen peas and corn nationally, under a handful of brand names. His grandfather founded the business in 1919.

Smith bought the company in 1980 and managed it until he joined the U.S. Senate in 1997, according to his Senate Web site.

Now Sharon Smith is CEO, and the company is run by professional managers.

Brown said the Weston-based company has been selling to the USDA for decades.

“What we use the USDA for, it’s really a way for us to move excess inventory, if we have it,” Brown said. Government business represents “under 2 percent,” of Smith Frozen Foods’ income, Brown said. Because the contracts were open to bids, they are usually the last resort for the company, Brown said.

“We say, ‘We’ve got X number of pounds and this price if they want it,’” Brown said. “It’s a bid and the lowest price wins, if you call it winning.”

Ramped up deals

Government records show that Smith Frozen Foods ramped up its government contracting over the past decade. Before Smith joined the Senate, Smith Frozen Foods earned a total of $2.9 million, in five separate contracts, in 1978, 1979, 1980 and 1986.

After, the company won $9.4 million in 15 contracts, from 1997 to 2001.

Smith’s campaign declined to comment. He is running against Democratic challenger Jeff Merkley this fall.

“I think we will let the facts, as transparent and above board as they are, speak for themselves,” said spokeswoman Lindsay Gilbride.

Brown said the company also sold to the USDA in 2005 and again as recently as this month, but he did not say how much those contracts were for. The transactions are handled through a broker, for U.S. Food Service, in Watsonville, Calif., Brown said, which may be why they do not show up in the database.

U.S. Food Service Vice President of Sales Matt Haas said he represents about 15 vendors nationwide, selling mainly to the USDA’s schools program.

Senators’ businesses

Smith isn’t the only U.S. senator to own a company that does business with the federal government. Companies controlled by Richard Blum, the husband of Sen. Dianne Feinstein, D-Calif., won more than $61 million in contracts from the U.S. military in 2005, for construction projects, according to the Federal Procurement Data System database of federal contracts.

Feinstein is worth between $51 million and $111 million, according to her financial disclosure forms. Feinstein does not own the companies.

Of the 15 senators with the highest net worth, based on their financial disclosure statements from last year, Smith ranked second, after Feinstein, in federal contracts, based on the Federal Procurement Data System records.

Other wealthy senators own shares of companies that compete for federal contracts but don’t control those firms, according to Center for Responsive Politics data.

Keith Chu can be reached at 202-662-7456 or at kchu@bendbulletin.com.

Comments

[slot machine]

Grazie per la condivisione vostro articolo. Mi sono davvero divertito. Ho messo un link al mio sito qui in modo che altri possano leggerlo. I miei lettori hanno circa gli stessi interessi. Grazie per la condivisione del bel post mi portano!