Kempthorne aide contacted ITD leaders

BOISE – Gov. Dirk Kempthorne’s office contacted Idaho Transportation Department Board members just before they gave a local company the contract to manage the state’s largest highway project. The contract decision has prompted a lawsuit alleging political favoritism.

Three of the seven board members told the Associated Press that Lance Giles, Kempthorne’s transportation adviser, spoke to them before the Oct. 27 vote that gave the deal worth $5 million annually to Washington Group International, of Boise, and Denver-based CH2M Hill Inc. The board members say they weren’t cajoled into voting a certain way.

The vote went against a 9-0 recommendation by transportation engineers who favored a bid by New York-based Parsons Brinckerhoff, and HDR Engineering of Omaha, Neb.

One of Washington Group’s consultants on the issue is Kempthorne’s former chief of staff, and Kempthorne was honored by the company in a June ceremony.

Kempthorne, who in April pressured lawmakers into passing his $1.2 billion “Connecting Idaho” roads plan by vetoing eight bills, said through a spokesman that Giles didn’t push board members to favor an Idaho company over an out-of-state rival.

Still, an ethicist says a governor with such intimate ties to a project could raise questions by meddling too closely with those responsible for awarding contracts.

“You already have the appearance of impropriety,” Michael Josephson, a Los Angeles-based ethics consultant, told the Associated Press. “In Idaho, most important people know other important people. It’s just the nature of a relatively small society. You can’t insulate from that, but you can keep it transparent.”

Mike Journee, Kempthorne’s press secretary, said the governor and his staff speak regularly with state boards and commissions about everyday business.

“Having conversations about the project, and putting political pressure on somebody, are two totally different things,” Journee said.

He declined to make Giles available, citing Parsons Brinckerhoff’s 4th District Court lawsuit that accuses the board of breaking state and federal laws by giving the contract to Washington Group and CH2M Hill because of their local ties. Federal Highway Administration officials also have asked transportation officials to reconsider.

The issue is now on the board’s agenda for Wednesday.

Giles contacted John McHugh, a board member from Post Falls who backed Washington Group and CH2M Hill. McHugh didn’t give conversation specifics, but said he wasn’t pressured.

“I think his office had an interest in our discussion,” McHugh said. “He’s been at lots of our meetings.”

Board member Gary Blick, of Castleford, said that while he didn’t recall the exact nature of his discussion with Giles, he also didn’t feel he was being directed to choose Washington Group.

“According to what they’re telling me now, maybe we didn’t consider things properly,” Blick said. “But in my opinion, those two (bids) were so close.”

Giles left a message on the answering machine of Bruce Sweeney, a Lewiston board member and the lone dissenting vote. Sweeney said he didn’t return Giles’ phone call.

Two board members, John X. Combo, of Idaho Falls, and Neil Miller, of Blackfoot, said Giles didn’t call them. Monte McClure, of Meridian, who made the motion to select Washington Group and CH2M Hill, didn’t return phone calls from the Associated Press.

Advocates from private industry who’ve championed “Connecting Idaho” have close ties to the governor.

For instance, Kempthorne’s chief of staff until 2002, Phil Reberger, is now a Boise-based political consultant being paid by Washington Group and the Idaho Associated General Contractors to promote the project. Washington Group contributed $3,750 to Kempthorne’s campaign fund, according to an Aug. 1 filing.

At a June 9 ceremony in Boise, Kempthorne was feted by the contractors group, whose members include Washington Group, for his role in shepherding it through the Legislature.

“We just wanted to say thank you to the governor,” said Michael Gifford, the group’s director.

Some Idaho lawmakers are concerned board members didn’t heed the unanimous recommendation of the engineers who evaluated the proposals.

According to that committee, Parsons Brinckerhoff’s bid was superior in three areas: It has managed similar programs in Louisiana and South Carolina; it showed how it would get the best financial deal for Idaho; and it outlined incentives and disincentives for meeting or missing targets.

“If you’re hiring them because of expertise, wouldn’t you hire the ones that have the expertise?” said Rep. Mike Moyle, R-Star, who opposed the highway package. “It doesn’t pass the smell test.”

Some activist groups also want more scrutiny of the contract decision.

“It’s a concern to us that there is such a closeness between political and business interests,” said Roger Sherman, United Vision for Idaho’s program director. “It’s just too cozy.”