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David McCormick claims he created ‘hundreds of jobs’ in Pa. Records say otherwise

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David McCormick claims he created ‘hundreds of jobs’ in Pa. Records say otherwise


The merger

In June 2003, McCormick initiated discussions with Robert Calderoni, chairman and CEO of Ariba, a Palo Alto-based FreeMarkets competitor, about the possibility of a “strategic relationship of some form” and potentially a “business combination.” After more discussions, McCormick approached his board about the idea in September.

From the beginning, the company made clear its intent was to save money by reducing “redundancies,” including those resulting from duplicative jobs. According to SEC filings, FreeMarkets told its shareholders that a benefit of the merger would lead to “at least $25 million in annual potential cost savings, through the consolidation of redundant facilities, personnel and overhead.” Jim Frankola, chief financial officer for Ariba at the time, told analysts on a January 2004 conference call, “Of those savings, we anticipate approximately one-third to come from duplicative G&A functions, plus the one-half from redundant R&D efforts, and the remainder from other functions.”

Later that month, Michael Schmitt, Ariba’s executive vice president and chief marketing officer, told San Jose Mercury News that FreeMarkets would consolidate its headquarters into Ariba’s, with the companies trying to “eliminate redundant jobs.” That same day, the Pittsburgh Post-Gazette quoted an analyst saying it was likely “a lot of people in Pittsburgh will lose their jobs,” adding “that’s certainly what typically happens” with a merger.

McCormick told the Pittsburgh Post-Gazette, “There will certainly be redundant functions and consolidation of those functions.” In a July 2004 deposition regarding the merger, he told the court that job losses were expected “particularly in our technology development organization where our plan as part of the merged company is to eliminate that completely.” The next month, McCormick told Ariba shareholders what they “accomplished” leading up to the merger: “We have already eliminated 150 positions and have plans to eliminate another 100 positions over the next two quarters.”

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Indeed, by the time the merger was complete, in July 2004, FreeMarkets had laid off or eliminated 150 positions. By December 2005, the combined company had reduced its workforce by an additional 100 employees, for a grand total of 250 lost jobs. At least 100 of those jobs were in Pittsburgh.

Calderoni defended McCormick in an interview with the New York Post, saying, “When we bought FreeMarkets, Dave insisted on keeping jobs in Pittsburgh. It really mattered to him as part of the transaction. In fact, he pushed for us to move jobs from California to Pittsburgh.”

It was a difficult time to run a startup tech company. The early aughts saw the bursting of a tech bubble that had grown during the late 1990s thanks to easy access to capital but started to pop in the early 2000s. As the Pittsburgh Gazette reported, the merger married “two unprofitable online business-to-business software and service firms that made names for themselves at the height of the dot-com boom, only to see their fortunes turn sour with the industry, forcing them to struggle to grow.”

McCormick wrote in his book that “creative destruction along with the bursting of the tech bubble eventually found its way to our sector as well.” However, he also admitted, “We didn’t move fast enough to become one of the true ‘software as a service’ companies that would eventually dominate the landscape. As CEO, I hadn’t built a team around me capable of evolving our business model quickly enough,” leading to the decision to merge with Ariba.

The merger, however, profited McCormick quite well. He became president of Ariba and a member of its board of directors, drawing $500,000 in annual salary, compared to the $350,000 he made at FreeMarkets, and was eligible for an annual bonus targeted at $300,000. He was also awarded 83,333 shares in Ariba, valued at $921,663, and 500,000 shares of stock options that had a potential realizable value between $3.4 million and $8.8 million. In September 2005, McCormick resigned as president of Ariba to work in the George H.W. Bush administration and received another $1,701,699 in severance.

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McCormick spokesperson Elizabeth Gregory told WHYY News in a statement, “Dave is proud to have helped create hundreds of jobs in Western Pennsylvania during his time at FreeMarkets.”



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How people in Western Pennsylvania can stay safe if they need to be outdoors

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How people in Western Pennsylvania can stay safe if they need to be outdoors


With a toxicity level that is higher than typical air pollution, the thick blanket of smoke from Ontario wildfires currently blanketing a good portion of the East Coast can pose a big risk for those whose jobs don’t allow them to remain inside.

According to the EPA, wildfire smoke contains a mix of gases and tiny particles that can irritate the lungs and airways. In sunlight, some of those gases can also react to form ozone, another harmful air pollutant.

As the Air Quality Index in Pittsburgh reached 240 at 1 p.m. Friday, a UCLA pulmonologist recently told NPR that AQI levels of 100-200 roughly equate to smoking a quarter to half a pack [of cigarettes] a day.

Construction workers, like those on the Commercial Street Bridge project, landscapers or others who work outside for a living and must still venture out, should limit their exposure, wear a mask and limit physical exertion.

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“The N95 mask is absolutely the best way to protect yourself and your lungs,” said Dr. Sally Wenzel, director of the University of Pittsburgh Asthma and Environmental Lung Health Institute at UPMC. “If you can’t do that, a surgical mask would probably be next, but not nearly as good.”

A good fit is important.

“You want to be able to — the way we did during covid — put it on your face, breathe in and get a little bit of a suction feeling,” she said. “The mask should collapse a little bit when you breathe in. You want to have as few empty, open spaces for the air to go through so it has to go through the mask to get to your nose and mouth.”

There is no hard and fast rule on break frequency.

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“The longer you’re ‘exercising,’ the heavier your breathing is going to be and the more you’re going to inhale the stuff that’s out there,” she said. “[Breaks] might allow you to regain a little bit of your energy, not to have to breathe quite as hard as you were at the end of that hour.”

For those who can stay inside, the focus shifts to keeping the smoky air out of the home.

Steve Boehmer, owner of Boehmer Heating and Cooling in Beechview, offers some insight.

“Have a good filter in place, a clean filter,” he said. “Another thing you can do is run your fan all the time. Most people’s thermostats have a fan switch: auto or on. Auto means that the fan runs when the air conditioner runs. If you turn it on, the fan runs all the time. That fan running all the time can make your filter work more of the time, keep the air clean and the particles down.”

Filter choice, he said, is important, too.

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“There are different levels of filters based on their MERV rating,” said Boehmer. “The higher the number, the tighter the weave is and the more particles it can capture. But the higher the rating, the more restrictive the airflow is and it can start to hurt your system. A piece of cardboard is a great filter; it’s not going to let anything through. But it’s not going to let any air through either. So you want to be careful you don’t go too high on that rating.”

The EPA recommends setting the air to recirculate when driving as well.





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Continued Legacy: Central Pennsylvania Auto Auction gears up for 25th anniversary of Classic Car Auction

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Continued Legacy: Central Pennsylvania Auto Auction gears up for 25th anniversary of Classic Car Auction


MILL HALL — This weekend, Central Pennsylvania Auto Auction, 41 Airstrip Dr., Mill Hall, will celebrate the 25th anniversary of its annual Classic Car Auction, welcoming thousands of collectors, buyers and enthusiasts from across the country for two days of bidding, entertainment and celebration. For President Doug Miller, however, the milestone represents far more than classic automobiles.

“It’s kind of like a milestone for us,” Miller said, as he reflected on the anniversary. “Because it’s my dad that started this. We lost him three years ago, and obviously we’re continuing on his legacy and things that he wanted to do. It’s not about the vehicles, it’s not about the auction. It’s just more of continuing on what he would want.”

The collector car event is an extension of the business founded by Miller’s father, Grant, and mother in 1987. While the company is preparing to celebrate 39 years of its weekly dealer-only auto auction in August, the annual collector auction has become a destination event in its own right.

“My father started the company 39 years ago in 1987,” he said. “Over the years, as our sales sort of grew, my father took an interest in antique and collector cars. He would go to other auctions and buy cars and thought, ‘Geez, we have our facility here. We should maybe try and do one of our own.’ So 25 years ago, we set up our collector car auction that we hold, and it’s always been the third weekend in July ever since.”

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This year’s event will feature more than 400 collector vehicles crossing the auction block over two days, along with vintage memorabilia, gas pumps, signs, mini bikes and other automotive collectibles.

While many of the consignments come from Pennsylvania and neighboring states, Miller said the auction’s reputation now stretches far beyond the region.

“We have customers that come from all across the United States,” he said. “The consignments come out of Pennsylvania and the bordering states — New York, New Jersey, Ohio, Maryland, Delaware. We have customers that have sent cars from as far as North Carolina.”

The auction has also become much more than a place to buy and sell classic vehicles.

Thursday evening opens with a complimentary cocktail reception featuring live entertainment at Grant’s Place. The auction begins Friday morning with memorabilia before moving to the collector cars. Friday evening includes a VIP gala with dinner, live music and fireworks.

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“It’s like a celebration, not just an auction,” Miller said. “We like to try to provide some entertainment because we’re obviously in a rural area and it gives the people something to do after the sale’s over.”

The event also brings a significant economic boost to the surrounding community. Hotels fill with visitors, restaurants welcome out-of-town guests and dozens of RV owners make a weekend of the festivities.

“We’ll have upwards to probably a couple thousand people come through our doors over the next three days,” Miller said. “We’ll probably have 30 or 40 RVs across the street that people will set up and spend the weekend camping in our parking lot.”

The celebration comes after months of planning by a team of employees who transform the auction grounds in just a matter of hours. Following Thursday’s regular dealer auction of roughly 750 vehicles, staff immediately begin clearing the lot and staging the hundreds of collector cars.

“We go home to shower and come back basically,” Shanan Miller said with a laugh. “We’re here around the clock.”

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Behind the scenes, nearly 100 employees — full-time and part-time — work together on auction days to keep the operation running smoothly.

“It wouldn’t be possible without our employees,” he said. “It’s a lot of work.”

He added that once the first gavel falls Friday morning, everything falls into place.

“Once Friday morning at 9 o’clock hits, it just sort of takes off,” he said. “It’s on autopilot for the weekend.”

For Doug, the family business has always been about more than selling vehicles.

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After graduating from high school in 1989, he briefly attended college before realizing his passion remained at the auction his father had built. His father insisted he learn every aspect of the business from the ground up.

“He said, ‘If you think for one minute that you’re going to leave school and come here and sit behind a desk and direct orders, that’s not happening,’” Doug recalled. “He said, ‘You’re going to learn every function in this business.’”

So he did.

He started detailing cars, transporting vehicles, picking up litter and plowing snow before eventually moving into management.

“And I still do,” he said with a smile. “If I need to go pick up a load of cars, I can do it.”

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Today, he is passing those same lessons on to his son, Jack Miller, who joined the business full time after the passing of his grandfather.

“I’m doing the same thing with my son, Jack,” Doug said. “He started where I did too.”

In following in their footsteps, Jack hopes to preserve what generations before him have built.

“I just want to continue what my dad has done and my grandfather before him,” Jack said. “Do as good of a job as they’ve done and provide the same level of service that they’ve shown me to provide.”

He believes the relationships built over decades are what keep customers returning.

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“I see how it makes our customers feel,” he said. “I believe that’s a huge part of what brings them back here, week after week if it’s for the regular sale, or every year for the classic auction. Just providing good service and working hard — it feels good to work hard and see a positive end result.”

Doug agreed that philosophy remains the cornerstone of the business his father founded nearly four decades ago.

“One thing my dad taught me is that you need to surround yourself with good people,” he said. “Whether it’s customers or employees, that’s what makes you successful.”

That commitment to service extends to everyone who visits the auction.

“We’re very customer-service driven,” Miller said. “You could sell popsicles, you could sell cars or whatever. It’s all about taking care of your customer. That’s what’s going to get them to come back.”

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As Central Pennsylvania Auction celebrates 25 years of its Classic Car Auction, the event stands as both a showcase of automotive history and a tribute to the family legacy that continues to drive it forward.

For the Miller family, every collector car that rolls across the auction block is another chapter in a story that began with one man’s dream in 1987– and one they hope will continue for generations to come.



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Wildfire smoke puts Pittsburgh under Code Red air quality alert

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Wildfire smoke puts Pittsburgh under Code Red air quality alert


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  • Pittsburgh was under a Code Red air quality alert on Thursday, July 16 due to wildfire smoke.
  • The smoke originated from wildfires burning in Canada and Minnesota.
  • A Code Red alert indicates unhealthy air quality, while a Code Orange alert means it is unhealthy for sensitive groups.

Pittsburgh was under a code red air quality alert on Thursday, July 16 as wildfire smoke from Canada and Minnesota settled across the city.

The city’s air quality was expected to deteriorate as smoke concentration at ground level increased throughout the day, with the day’s overall air quality forecast as unhealthy due to fine particles carried in smoke, according to Pennsylvania Department of Environmental Protection.

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Here’s what to know about Pittsburgh’s air quality.

What’s the air quality in Pittsburgh today?

The morning of July 16, the air quality was moderate, with an Air Quality Index reading of 55, according to AirNow. But it was expected to hit unhealthy levels later in the day, with the overall daily air quality anticipated to reach dangerous levels with an AQI of 175, prompting Pennsylvania Department of Environmental Protection to issue a Code Red air quality alert. The alert is based on the day’s expected overall air quality and not individual hour-to-hour readings.

Smoke was likely to continue to impact Pittsburgh into the weekend, with a forecast overall daily AQI of 140 on July 17, with the state department of environmental protection issuing a Code Orange air quality alert. This indicates that the air quality may be unhealthy for sensitive groups.

July 18 was likely to see improved conditions, with moderate air quality.

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What does a Code Red air quality alert mean?

A Code Red air quality alert indicates that the overall air quality within a day is likely to be unhealthy, with an AQI reading of 151 to 200.

Because the alert is based on the overall air quality for the day, there may be periods of time with better air quality. It’s a good idea to check the current air quality before going outside.

If you have to go outside while the AQI is at unhealthy levels, AirNow recommends avoiding strenuous activities or limiting your time outdoors. It may be a good idea to move outdoor activities indoors.

Pennsylvania Department of Environmental Protection also encouraged residents to avoid using gas-powered lawn and garden equipment, reducing the use of fireplaces or wood stoves and avoiding the open burning of leaves, trash or other materials in an effort to reduce fine particulate matter air polution.

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What does a Code Orange air quality alert mean?

A Code Orange air quality alert means that the overall air quality within a day is likely to be unhealthy for sensitive groups, with an AQI reading between 101 to 150.

Those with lung disease, older adults, children and teens should reduce their exposure by engaging in less strenuous activities or limiting their time outdoors when the current air quality is at its worst, according to AirNow.

Wildfire smoke impacting Pittsburgh’s air quality

There were more than 830 wildfires burning in Canada as of July 15, with over 100 considered out of control. Many of the fires impacting the Northeast’s air quality were in Ontario and Minnesota.

Smoke from the wildfires hit Pennsylvania on the evening of July 15, causing hazy skies in Pittsburgh. Conditions were expected to worsen on July 16 as more smoke entered the area, with smoke likely to linger through July 17.

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Is Pittsburgh under a heat advisory?

While Pittsburgh was under a heat advisory on July 15, the advisory was no longer in effect on July 16. The high on July 16 was forecast at 93, though temperatures could possibly fall several degrees because of smoke cover, according to the National Weather Service.

Brandi D. Addison and Karina Zaiets contributed to this report.

Finch Walker is the Pittsburgh Connect Reporter for the USA TODAY Network. Contact Walker at FWalker@usatodayco.com. Instagram: @finchwalker_. X: @_finchwalker.





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