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| PRICE
TAG New federal security rules could cost ports
$5.4 billion over 10 years. (Photo courtesy of the Port
of Seattle) |
Construction firms
hoping for a quick bonanza of homeland security work have
found a disappointingly spotty market. Theyve seen pockets
of new business from agencies such as the Dept. of Defense,
but also hit bureaucratic blind alleys where contract dollars
are hard to find.
"The moneys not been
flowing nearly as fast as everyone thought in the beginning,"
says Jeffrey Peacock, director of corporate security for CH2M
Hill Cos. Adds Charles Neubauer, Parsons Corp. homeland security
coordinator: "The market really didnt shape up
for what we might call homeland security in the areas where
I think we all expected it to shape up."
Congress gave the new Dept. of
Homeland Security $29.4 billion in its first appropriations
bill, enacted Oct. 1. That total is up 2% from what its component
agencies got in 2003 and includes hundreds of millions of
dollars in potential design and construction.
For design firm HDR, "Basically
our experience with DHS is good news and bad news," says
Larry Bory, vice president for federal government relations.
Where the firm had existing contracts, such as within DHSs
Border Protection, Immigration and Customs Enforcement units,
"We kept getting work. We kept getting new contracts."
Elsewhere, "Its been difficult to get to certain
people," he adds. "Generally most money has been
going to consultants other than architects and engineers."
There is design work out there.
CH2M Hill has contracts from DOD and the State Dept. and water
and transportation agencies. Parsons is working on new Air
Force entry gates and systems. DOD is "investing a fair
amount in strengthening their posture," Neubauer says.
"That business is moving."
Peacock says that "the trick
is...identifying the legislative driver first, then where
the money is going and then try to find out if theres
an actual project thats been funded."
One potential "driver"
is the 2002 Maritime Transportation Security Act. It mandated
rules, published Oct. 22, requiring security plans from 361
ports by Dec. 31. Implementing the plans will cost $5.4 billion
over 10 years, the Coast Guard estimates, including $1.1 billion
in the initial year.
Since 9/11, port security aid has
totaled about $500 million, including $150 million in the
DHS 2004 appropriations bill. But with the new Coast Guard
rules in place, the American Association of Port Authorities
is seeking $400 million more for port security in 2005.
Some in Congress are trying to
find a steadier funding stream for port security than appropriations.
For example, Rep. Doug Ose (R-Calif.) has introduced a bill
to steer part of the $15.6 billion in marine transport customs
duties to port security.
Airports also look promising. The
Transportation Security Agency has $250 million in 2004 to
reconfigure airports for machines to scan baggage for explosives.
That brings total federal aid for that work to $1.5 billion
since 9/11. But airport groups estimate up to $3.5 billion
more is needed to complete that job.
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