Port Observer Special Report

Part I – SAIC, Local Politics and Corporate Gain 

By Jeff Upthegrove

July 12, 2007

Port of Seattle Commission candidate Gael Tarleton says she wants to restore accountability and transparency to the Port of Seattle. But an investigation by The Port Observer of Tarleton’s own involvement with a controversial ports contractor raises troubling questions about her own ties to special interests.

Prior to her current position at The University of Washington's Office of Global Affairs, Tarleton was a long time employee (1990-2002) of Science Applications International Corp. (SAIC), a large contractor for the U.S. defense and intelligence communities with a troubled history.

The Port Observer has learned that in addition to a wide array of other business, SAIC sells multi-million dollar gamma ray container scanning equipment to ports around the world. In recent years SAIC has been aggressively courting U.S. Ports in an attempt to sell this equipment.

In an interview with The Port Observer, Tarleton acknowledges she continues to be a shareholder in SAIC, a company that pioneered the concept of employee ownership, and has a personal financial interest in SAIC’s business success. Tarleton contends that her ownership interest in SAIC is “small” - less than $50,000 - and that she will recuse herself from any Port Commission deliberations related to business with SAIC.

It’s not just Tarleton, but also her campaign contributors who stand to benefit from scanning equipment deals with the port. A review of Tarleton’s Public Disclosure Commission filings reveals that more than 30 of Tarleton’s top contributors are current or former executives of SAIC or their family members. The list includes SAIC lobbyist John Kileen III, and SAIC’s controversial founder, Dr. J Robert Beyster, who is Tarleton’s largest contributor. In fact, SAIC related contributions account for more than 20% of Gael Tarrleton’s money raised as of the last PDC reporting period.

Science Applications International describes itself as “a leading systems, solutions and technical services company” that offers “a broad range of expertise in defense modernization efforts, intelligence, homeland security, logistics and product support, health and life sciences, space and earth sciences and global commercial services.”

SAIC has a long history of scandal and involvement in questionable conduct related to government contracting. In 1990 SAIC was indicted by the Justice Department and pled guilty to 10 felony counts for fraud in its management of a Superfund toxic cleanup site in Los Angeles. In 1993 the Justice Department sued SAIC, accusing it of civil fraud on an F15 fighter contract. SAIC has been accused of improprieties in dozens of other cases, including charges related to voter fraud, nuclear waste disposal, and false data on Iraqi WMD in the lead up to the Iraq war.

However, the scandal of greatest concern to The Port Observer took place in 1999-2000. According to an October 2000 article by Matt Potter in the San Diego Reader, San Diego County proposed to "outsource" its data-processing system to a group of private contractors. The move would cost 300 county workers their jobs, but the board of supervisors said it would save tax dollars. The employees' union, Service Employees International Local 2028, countered that the private contract would end up costing taxpayers more, not less.

Despite the critics, the board of supervisors proceeded with what was to become a seven-year, $650 million contract to revamp and operate the county's confusing maze of computer and telecommunications systems. The board began recruiting bidders on February 24, 1999, and by that May was reviewing four proposals, including one from a consortium including SAIC, which Potter describes as a company “unafraid to throw its political influence around.”

“When the winner was announced on October 15, 1999, few insiders were surprised”, says Potter. An alliance including SAIC had carried the day. When the final contract was ratified by the supervisors on October 26, suspicions were fueled when the board voted 4-0 to approve the plan without question or discussion. According to an account in the next day's San Diego Union-Tribune, "Supervisor Ron Roberts acknowledged the lack of questions, but said he and other supervisors had closely tracked the yearlong process and had asked questions behind closed doors."

“But was merit the only thing that Science Applications had in its favor?” asks Potter.

Less than a month after the final vote to approve the Pennant Alliance contract, records show, SAIC employees began to contribute heavily to the Roberts campaign for San Diego mayor. Campaign disclosure records show that on November 11, 1999, two weeks later, William Roper, Jr., the company's chief financial officer, made a large contribution to the Roberts campaign, as did SAIC founder and top Tarleton contributor Dr. J. Robert Beyster and two other SAIC workers and their wives.

Stay tuned for Part II of the Port Observer’s Series on Tarleton and SAIC