David H. McCormick

David Harold McCormick was nominated June 28, 2005, by President George W. Bush to serve as Undersecretary for Export Administration at the U.S. Department of Commerce. His nomination was sent to the Senate on June 28, 2005, and confirmed October 7, 2005. McCormick replaces Kenneth Juster, who served in the role during the first Bush administration.

Responsibilities "The undersecretary of export administration's primary role is to ensure that U.S. export policy for what are known as 'dual goods' -- hardware, software, chemicals and other products that have both military and civilian uses -- doesn't undermine national security." 

"At the same time, the undersecretary is expected to champion the sale of U.S. products and services overseas and uphold the nation's competitiveness, said Deborah Wince-Smith, president of the Washington-based Council on Competitiveness, a trade advocacy group." 

"If confirmed by the Senate, McCormick's role will be to determine what can and cannot be shipped overseas. ... 'Every decision you make is a commercial decision as well as a foreign policy decision,' said William Reinsch, who served in the role from 1993 to 2001 and who is now president of the National Foreign Trade Council, a Washington-based advocacy group." 

"Reinsch said the United States appears headed into an 'era where you see our export controls tightened significantly, making (McCormick's post) much more controversial than it has been,' particularly regarding exports to China.

"The office is also called to offer an opinion on whether it is appropriate to allow foreign corporations to acquire U.S. businesses, such as the proposed acquisition of Los Angeles-based oil company Unocal by Chinese firm Cnook Ltd." 

Bush Supporter "McCormick's nomination is said to have evolved not from local Republican connections, but rather, his contacts in Washington."

"McCormick, a supporter of Bush, has been a donor to several Republican candidates, including Sens. Rick Santorum, of Penn Hills, and Arlen Specter, of Philadelphia, Colorado Sen. Ben Nighthorse Campbell, Missouri Sen. Christopher Bond and Alaska Sen. Lisa Murkowski, according to federal election records." 

According to the website, www.opensecrets.org, McCormick donated $2,000 each to Specter in 2003 and Santorum as recently as January 2005. 


 * Director, Overseas Private Investment Corporation

Profiles
Qualifications At the time of his nomination, McCormick was serving as President and Director of Ariba, Inc., a software and services solutions company, and previously served as President and CEO of FreeMarkets, Inc., which was acquired by the Sunnyvale, California-based software and services firm Ariba in 2004. 

Prior to that, "McCormick received a mechanical engineering degree from the U.S. Military Academy at West Point in 1987, and served as a captain in the Army Corps of Engineers, then as a platoon leader and executive officer in the Army's 82nd Airborne Division during Operation Desert Storm." A veteran of the first Gulf War, he received a Bronze Star Medal for his service in Iraq. McCormick later received his master's degree and his Ph.D. from Princeton University. 

"McCormick was working as a consultant on corporate strategy for the consulting firm McKinsey & Co. in Pittsburgh when he was recruited in late 1999 to join FreeMarkets shortly before its initial public stock offering. ... He rose quickly, becoming president then CEO within a six-month span in 2002. ... McCormick helped the company grow from $20 million to $150 million in revenue and negotiated its sale to Ariba for $500 million." 

Republican Values In 1996, McCormick earned a doctorate in International Affairs at Princeton. In 1998, his book The Downsized Warrior: America's Army in Transition was published by the New York University Press in 1998.

"He also has written frequently about issues affecting the U.S. troops, most recently, a 2002 Op-Ed submission published in the Los Angeles Times that voiced his support for deposing former Iraqi president Saddam Hussein." 

Stock Transactions

 * ARBA Last 10 Insider Actions for November 5, 9, and 12, 2004.

Statements

 * "Under Secretary of Commerce for Export Administration-Designate before the Committee on Banking, Housing and Urban Affairs, United States Senate, September 15, 2005.
 * Rick Santorum is a member of the Committee which confirmed McCormick's nomination.

Articles & Commentary

 * Corilyn Shropshire, "Ariba's McCormick picked for job at Commerce," Pittsburgh Post-Gazette, June 30, 2005.
 * Michael Yeomans, "Ariba chief slated for key Commerce post," Pittsburgh Tribune-Review, June 30, 2005.

Related Sourcewatch articles

 * Bush administration cronyism and incompetence