Monday, August 1, 2022

Former Biden aide lobbied on merger DOJ sued to block

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By Caitlin Oprysko

With Eleanor Mueller and Daniel Lippman

ANNALS OF ANTITRUST LOBBYING: Days before the Justice Department sued to block a deal for Booz Allen Hamilton to acquire cybersecurity contractor EverWatch in June, the private equity firm that owns EverWatch retained Christopher Putala of PutalaStrategies to lobby on antitrust issues related to the acquisition, according to lobbying disclosures filed last week.

— Booz Allen and EverWatch announced their impending merger in March, with a press release declaring the deal would "meaningfully accelerate the delivery of classified software development and analytics capabilities for national security clients."

— Putala, a former aide to President Joe Biden from Biden's time on the Senate Judiciary Committee, began lobbying for the private investment firm Enlightenment Capital on June 23, according to the disclosures.

— Less than a week later, on June 29, the Justice Department filed a civil antitrust lawsuit to halt the proposed acquisition, contending that Booz Allen and EverWatch were the only two vendors competing for an NSA contract to supply "operational modeling and simulation services" in support of the agency's "signals intelligence data missions."

— In the suit, the Justice Department accuses Booz Allen of deciding "to stop competing with EverWatch and instead chose to buy the company," which DOJ alleges "immediately reduced the incentive each company has to submit a competitive bid, and, if completed, would eliminate the competition between the two altogether, leaving NSA to face a monopolist."

— Termination paperwork filed late last week shows Putala stopped lobbying for Enlightenment Capital on June 30 — a day after the suit was filed — but that in the week in which he had been retained was paid $25,000 for his work, which the disclosure shows involved outreach to the Senate and Justice Department.

— While Enlightenment Capital is not listed as a defendant in DOJ's suit, the firm owns EC Defense Holdings , which owns EverWatch — both of which are named in the suit. Neither Putala nor Enlightenment Capital responded to requests for comment on Putala's work for the firm. Putala was the first federal lobbyist retained by Enlightenment Capital, and none of its subsidiaries named in the suit have reported hiring lobbyists previously.

— Booz Allen, meanwhile, has denied DOJ's accusations and expressed confidence that its EverWatch acquisition will move forward. "I firmly believe that strategic M&A, like our proposed acquisition of EverWatch, increases both innovation and competition and that the interests of the government and the strategic acquirers are fully aligned," President and CEO Horacio Rozanski said during an earnings call on Friday, according to a transcript prepared by The Motley Fool. Asked about the DOJ's assertions in the antitrust suit, Rozanski added that "we hope to prevail on this one."

— Still, the contractor reported lobbying on antitrust policy for the first time during the second quarter of this year, OpenSecrets reported last month, though a spokesperson told the site that Booz Allen had "raised the overall issue [of the acquisition] for awareness but did not ask the Congress to take action" and included the issue in its quarterly disclosure "out of an abundance of caution."

Good afternoon and welcome to PI. Here's some required listening , in honor of the first day of August (obviously). Send K Street tips and musings: coprysko@politico.com . And be sure to follow me on Twitter: @caitlinoprysko .

 

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WHO NUDGED MANCHIN BACK TO THE TABLE: "When Joe Manchin balked at the clean energy incentives in Democrats' expansive spending bill two weeks ago, the corporate C-suites and union boardrooms jumped into action ," POLITICO's Zack Colman, Josh Siegel and Kesley Tamborrino reported.

— "With hundreds of billions of dollars of incentives for manufacturing, electric vehicles, nuclear power and carbon capturing technology hanging in the balance, executives from some of the nation's biggest companies and labor unions made their case to the Democratic West Virginia senator: The next generation of clean tech needed Washington's backing to take off."

— "Clean energy manufacturing companies with plans to set up shop in Manchin's state helped orchestrate the 13-day effort to change his mind, more than 20 people involved in the effort told POLITICO — eventually helping to get his backing for the $369 billion in incentives in the newly dubbed Inflation Reduction Act, H.R. 5376 (117) ."

— "That push — which two of the people said included a call from Bill Gates, whose venture capital firm has backed a West Virginia-based battery start-up — was taking place alongside a campaign by other senators along with economist and inflation hawk Larry Summers to convince Manchin of the merits of the bill."

— "'It was across the board,' said National Wildlife Federation CEO Collin O'Mara, who according to other participants was central in organizing the campaign to persuade Manchin to restart talks. 'He heard from a wide range.'"

THE NEXT FRONT ON CHIP LOBBYING: Even as Biden is readying to sign into law "more than $52 billion in 'incentives' designed to lure chipmakers to the U.S., an unusual alliance of industry lobbyists, hard-core China hawks and science advocates says the president's dream lacks a key ingredient — a small yet critical core of high-skilled workers," POLITICO's Brendan Bordelon and Eleanor Mueller report.

— "It's a politically troubling irony: To achieve the long-sought goal of returning high-end manufacturing to the United States, the country must, paradoxically, attract more foreign workers. 'For high-tech industry in general — which of course, includes the chip industry — the workforce is a huge problem,' said Julia Phillips, a member of the National Science Board. 'It's almost a perfect storm.'"

— "The chip industry has shared its anxiety over America's slipping STEM workforce with Washington, repeatedly asking Congress to make it easier for high-skilled talent to stay. But unlike their lobbying for subsidies and tax breaks — which has gotten downright pushy at times — they've done so very quietly. While chip lobbyists have spent months telling anyone who will listen why the $52 billion in financial incentives are a 'strategic imperative,' they've only recently been willing to discuss their immigration concerns on the record."

— "In late July, nine major chip companies planned to send an open letter to congressional leadership warning that the shortage of high-skilled STEM workers 'has truly never been more acute' and urging lawmakers to 'enact much-needed green card reforms.' But the letter was pulled at the last minute, after some companies worried about wading into a tense immigration debate at the wrong time."

AFP GOES ON THE AIR AGAINST RECONCILIATION: The Koch-backed Americans for Prosperity has launched an six-figure ad buy targeting the Senate's two key swing votes and three Democratic senators facing tough reelections in a bid to sink the party's newly expanded reconciliation bill.

— The campaign began on Friday with digital and connected TV ads urging Manchin and Sen. Kyrsten Sinema (D-Ariz.) to vote against the package, which the group calls a "$739 billion tax hike that will raise prices & make American energy more expensive." AFP has since expanded the buy to include Sens. Raphael Warnock (D-Ga.), Maggie Hassan (D-N.H.) and Catherine Cortez Masto (D-Nev.), all of whom are viewed as being among the chamber's most vulnerable Democrats in this fall's midterms.

PAID LEAVE LEADER PIVOTS TO THE MIDTERMS: One of the top advocates for paid family and medical leave, Dawn Huckelbridge, is launching a hybrid PAC to back federal candidates who commit to enacting the policy after it was omitted once again from Democrats' reconciliation plans, Morning Shift reports.

— "We realize that this is a political problem, and we need to build the political power to get it done," Huckelbridge told Eleanor on Sunday. "I want to ensure that every candidate has paid leave at the top of their agenda."

— Huckelbridge, who also serves as the director of Paid Leave for All, is launching the PAC in solely a personal capacity after the broader campaign to wrap paid leave into the package failed. "This is something that has been an idea in progress for a long time, but really was cemented when we saw that this was not going to be happening this Congress and the reconciliation package," Huckelbridge said.

— Since then, "it's been made clear that issues disproportionately impacting women and families have been sidelined time and time again. And we need to build a much stronger political presence." The PAC launched with a "major commitment," Huckelbridge said, from Colorado-based philanthropist Merle Chambers' Chambers Initiative.

Jobs Report

Brian Besanceney is joining Boeing as senior vice president and chief communications officer. He was most recently senior vice president and chief communications officer at Walmart and is a Walt Disney World and George W. Bush White House alum.

Erin Ennis has been promoted to senior vice president of government affairs at Dell Technologies, taking over the role from Mike Young, who served as the global government affairs lead for nearly two decades. Ennis was previously vice president of global public policy.

Sarah Arbes is joining AstraZeneca as head of federal affairs and policy. She was most recently vice president of federal affairs, alliance development and policy at bluebird bio. She is a Trump and Bush Administration alum.

Alexandria Icenhower is now the senior government relations director for Vizient. She most recently was federal relations manager for the Massachusetts Medical Society, and is a Honeywell International alum.

— Former New York state Sen. Todd Kaminsky has joined Greenberg Traurig's government law and policy practice in the Albany office.

Alex Rosenwald, Mark Melton and Morgan DeWitt are joining the Hudson Institute. Rosenwald will be director of media relations and previously was vice president of marketing and community at Ricochet. Melton will be managing editor and previously was managing editor at Providence magazine. DeWitt will be manager of public programming and special projects and previously was associate comms director in the State Party Strategies department at the RNC.

Robert Flock is now vice president in the office of strategic engagement at the American Bankers Association. He recently received his MBA from Columbia Business School and was previously director of advocacy for congressional relations at the Credit Union National Association.

Nichole Wilson is now executive director of the Charlotte Lozier Institute at Susan B. Anthony Pro-Life America. She most recently was counsel to the Senate Aging Committee, and is a Trump HUD alum.

Elizabeth Stolpe is joining Project Canary as vice president of U.S. and international government affairs. She most recently worked on the Bipartisan Policy Center's oil and gas program.

Jared Stout is joining Axiom Space as vice president of government and external relations. He was most recently director of congressional and regulatory policy at Meeks, Butera & Israel, and previously served as chief of staff of the White House National Space Council.

Rebekah Rodriguez is now director of federal affairs at Boundary Stone Partners. She previously was senior legislative assistant for Rep. John Curtis (R-Utah) and deputy executive director of the Conservative Climate Caucus.

Paige Rusher is now a director at Seven Letter. She previously was press secretary for Sen. Richard Burr (R-N.C.) and the Senate HELP Committee and is a Rep. Andy Barr (R-Ky.) alum.

Dan Wagner, a retired Army officer and veteran of Army legislative affairs, is joining O'Brien, Gentry & Scott LLC, a national security and defense-focused government relations firm.

Newco Strategies is adding Emily Voorde as an associate director and Adaeze Nduaguba as a senior associate. Voorde most recently was at the White House Office of Public Engagement.

Kat DesCamp-Renner is now a government affairs associate at J Street . She previously was program assistant for Middle East policy at the Friends Committee on National Legislation.

New Joint Fundraisers

None.

New PACs

AMERICAN LIBERTY ACTION PAC (Super PAC)
Enact Holdings, Inc. Political Action Committee (Enact PAC) (PAC)
Neighbor In Congress (Super PAC)
New Blue USA (PAC)
Old Drum Conservative PAC (PAC)
Coach Guy's Leadership PAC (Leadership PAC: GUY CIARROCCHI)
Samuel's Super PAC (Super PAC)
Stronger America (Super PAC)

New Lobbying Registrations

Auburn Health Strategies, LLC: Aoac International
Crestview Strategy US LLC: Capital Power Corporation
Forbes-Tate: National Grid USa Service Company, Inc. D/B/A National Grid
Marilyn Park: Afge National Va Council
Putalastrategies: Enlightenment Capital
Stanton Park Group: Prime Trust LLC
Thorn Run Partners: City Of Billings, Montana
Thorn Run Partners: City Of Riverside, California
Thorn Run Partners: City Of West Hollywood, California

New Lobbying Terminations

Atlas Advocacy: Bladder Cancer Advocacy Network
Bob Riley & Associates, LLC: Alabama Affordable Housing Association
Lemunyon Group, LLC: Dallas Safari Club
Putalastrategies: Enlightenment Capital
The Institute Of Internal Auditors: The Institute Of Internal Auditors

 

STEP INSIDE THE WEST WING: What's really happening in West Wing offices? Find out who's up, who's down, and who really has the president's ear in our West Wing Playbook newsletter, the insider's guide to the Biden White House and Cabinet. For buzzy nuggets and details that you won't find anywhere else, subscribe today .

 
 
 

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