Convention industry in the post-GSA scandal world

Originally posted by TIM MAK and LEIGH MUNSIL on Politico

This isn't your granddaddy's Army convention.

In the post-GSA-scandal environment in which the very industry of convention organizing is under siege, the annual U.S. Army association's exposition at the Washington Convention Center is aiming to be a "gold standard" for military trade shows -- without the emphasis on gold.

"It's not hidden, it's not in Vegas," said David Liddle, communications director for the Association of the United States Army, the private organization that organizes the convention. "It's very cost-effective. It's a frank exchange of ideas. It allows the Army and others to examine the state of the Army. ... It's for grown-ups, you know? ... It's not bicycle building, or whatever -- hypnotists or magicians."

Liddle is facing an unenviable task: To promote a high-quality conference, while stressing its austerity and good taxpayer value.

The recent much-publicized scandal over the extravagance of a regional General Services Administration conference two years ago in Las Vegas still weighs heavily in the minds of federal workers. And this month's revelation that the Department of Veterans Affairs wasn't so wise in spending $762,000 in taxpayer money on two conferences couldn't have come at a worse time.

Plus, the rules have changed. Deputy Defense Secretary Ash Carter now reviews all conferences for which the Pentagon spends more than $500,000, following White House Office of Management and Budget guidance to more closely monitor government gatherings.

"The whole industry is getting antsy ... The risks associated with conferences and trade shows has increased greatly," said Air Force Association Executive Vice President David Buckwalter, who helps organize AFA's annual exhibition.

The increased scrutiny of the AUSA convention and other conferences is largely a result of the post-GSA-scandal climate, said Kevin Traver, senior director of corporate affairs and development for the Navy League, which puts on a smaller-scale annual event.

"Timing is really important," he said. "And unfortunately our friends at AUSA and AFA have really borne the brunt of this because the new approval process came out."

"I get it," he added, "we're all in a tight budget world."

Despite the pressures, Traver agreed that AUSA is the gold standard for military trade shows, though he suggested the Army's bill of more than $10 million for each of the past AUSA conventions, as Bloomberg News reported last week doesn't hurt.

"I always wondered how AUSA did so well. Now I know -- spending $10 million a year, every show. I mean, we get nothing. We're not even in that realm," Traver said. The Navy League's annual Sea-Air-Space Exposition, in comparison, gets approximately $238,000 from government agencies.

The scrutiny over the potential cost to taxpayers also threatens to keep Pentagon personnel -- the bread and butter of military conventions -- away from conventions like AUSA's this week. Without the opportunity for face-to-face interaction with Pentagon officials and uniformed military men and women, defense contractors say there's little reason to set up exhibits at great cost.

"Given how expensive the AUSA conference is for companies, we all will be looking at our costs versus what we get out of this year's show and will make adjustments in future years," explained one executive for a top defense contracting company that is an AUSA vendor. "We will take a wait-and-see attitude, as most companies will."

Another source in the military convention organizing industry agreed.
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