Security Magazine logo
search
cart
facebook twitter linkedin youtube
  • Sign In
  • Create Account
  • Sign Out
  • My Account
Security Magazine logo
  • NEWS
    • Security Newswire
    • Technologies & Solutions
  • MANAGEMENT
    • Leadership Management
    • Enterprise Services
    • Security Education & Training
    • Logical Security
    • Security & Business Resilience
    • Profiles in Excellence
  • PHYSICAL
    • Access Management
    • Fire & Life Safety
    • Identity Management
    • Physical Security
    • Video Surveillance
    • Case Studies (Physical)
  • CYBER
    • Cybersecurity News
    • More
  • BLOG
  • COLUMNS
    • Cyber Tactics
    • Leadership & Management
    • Security Talk
    • Career Intelligence
    • Leader to Leader
    • Cybersecurity Education & Training
  • EXCLUSIVES
    • Annual Guarding Report
    • Most Influential People in Security
    • The Security Benchmark Report
    • The Security Leadership Issue
    • Top Guard and Security Officer Companies
    • Top Cybersecurity Leaders
    • Women in Security
  • SECTORS
    • Arenas / Stadiums / Leagues / Entertainment
    • Banking/Finance/Insurance
    • Construction, Real Estate, Property Management
    • Education: K-12
    • Education: University
    • Government: Federal, State and Local
    • Hospitality & Casinos
    • Hospitals & Medical Centers
    • Infrastructure:Electric,Gas & Water
    • Ports: Sea, Land, & Air
    • Retail/Restaurants/Convenience
    • Transportation/Logistics/Supply Chain/Distribution/ Warehousing
  • EVENTS
    • Industry Events
    • Webinars
    • Solutions by Sector
    • Security 500 Conference
  • MEDIA
    • Videos
      • Cybersecurity & Geopolitical Discussion
      • Ask Me Anything (AMA) Series
    • Podcasts
    • Polls
    • Photo Galleries
  • MORE
    • Call for Entries
    • Classifieds & Job Listings
    • Continuing Education
    • Newsletter
    • Sponsor Insights
    • Store
    • White Papers
  • EMAG
    • eMagazine
    • This Month's Content
    • Advertise
  • SIGN UP!
Security Newswire

Government Contractors May Be Biggest Stimulus Winners

February 9, 2009

While the U.S. House and Senate must still reach a compromise of their versions of the Economic Stimulus legislation, it’s already apparent that significant dollars will go to physical security, information security and R&D of new technologies. The major sectors: Federal and state government; labor, health and education; energy and the environment; agriculture and rural development; commerce, justice and science; and defense and security. The latter – one of the smallest sectors in terms of dollars – will cover research and development as well as other spending areas. All the sectorswill have security spending opportunities.

While criticism has centered in part on wasted money, it’s also obvious that a lot of the money over the course of time will go to government contractors who already have strong ties to local, state and federal agencies and the military through technology, integration, development, outsourcing and consultant services.

The irony is that both the Clinton and Bush administrations have shipped more work to private sector contractors while, at the same time, seriously reducing staff and programs to oversee and audit the work.

Top Federal Contractors

According to GovernmentExecutive.com

 

Lockheed Martin Corp.

Boeing Co.

Northrop Grumman Corp.

General Dynamics Corp.

Raytheon Co.

KBR Inc.

L-3 Communications Holdings

SAIC

United Technologies Corp.

BAE Systems

 

There is already drum beating over the contractors’ role.

For example, Federal contractors should not wait until the economic stimulus package is passed to uncover $62 billion dollars worth of potential opportunities. While the Senate finalizes its version of the legislation, INPUT has already identified several areas expected to find a place in the final bill. The key: identify shared priorities between the House and Senate.

The House passed its version of the American Recovery and Reinvestment Act (ARRA), while the Senate prepares to vote on their amended version early this week. According to INPUT, contractors should focus on the commonalities in the two pieces of legislation as these will be the programs that are most likely to be enacted.

“There’s a heated partisan debate over the content, structure, and impact of the ARRA,” stated Deniece Peterson, principal analyst with INPUT. “However, the common priorities that are mission-critical, create jobs, or address high-priority, long-term federal goals have the most staying power.”

Mission Critical

Border and transportation security were called out in both versions of the ARRA, with funding set-aside for detection and checkpoint technologies.   The Senate would also fund baggage screening, tactical communications equipment and radios, SBInet technology and fencing, and other security activities for total spending of $1.4 billion, compared to the $600M allocated in the House bill. The State Department would likely receive funding for its role in the Comprehensive National Cyber Security Initiative and technology upgrades, while the Social Security Administration could be set to receive funding for a new National Computer Center and related technology to address a serious lack of personnel and processing backlogs.

Job Creation

Contractors involved in facilities construction and modernization could see $27 billion in opportunities. These infrastructure projects are at the center of the government’s job creation strategy. While both sides of Congress have a long list of agencies needing updated facilities, they agree in a number of areas: research facility modernization (NSF, NIH, CDC); military housing and child development centers facilities (DoD); health facilities (HHS, DoD); road, bridge and trail repair (DOI); and energy conservation projects for existing facilities (GSA, DoD, VA). These projects will call for contractors to provide products and services to upgrade technology (e.g., networking, computers, energy efficiency monitoring, etc.), equipment, lighting and heating, as well as professional services (e.g., design, testing, inspection, etc.).

Long-Term Goals

Both versions of the ARRA have projects related to some of the federal government’s long-term initiatives, such as energy and health IT. Smart grid modernization, alternative energy R&D, and the development of a health IT architecture and electronic health records are critical elements of the federal government’s plan to save money and to reduce its carbon footprint. The stimulus plan could contain up to $34 billion in energy and health IT initiatives.

The stimulus package will represent other opportunities inherent in such a large scale effort. “The workforce shortage and the volume of spending will require support in grants, financial, and program management,” said John Slye, principal analyst with INPUT.

Both bills require expenditure plans within 30 days and project starts within 120 days in many areas. These time constraints introduce vendor risk, depending on how prepared the government is to implement large scale initiatives in such a short period of time. Contractors seeking opportunities from the ARRA should be prepared with ready-made solutions, despite uncertainty around acquisition time frames.

Contractors that mobilize around these Obama administration priorities – which would likely receive funding with or without a stimulus package – will be better prepared when agency dollars begin flowing than those taking a “wait-and-see” approach.

Share This Story

Looking for a reprint of this article?
From high-res PDFs to custom plaques, order your copy today!

Recommended Content

JOIN TODAY
To unlock your recommendations.

Already have an account? Sign In

  • Security's Top Cybersecurity Leaders 2024

    Security's Top Cybersecurity Leaders 2024

    Security magazine's Top Cybersecurity Leaders 2024 award...
    Security Leadership and Management
    By: Security Staff
  • cyber brain

    The intersection of cybersecurity and artificial intelligence

    Artificial intelligence (AI) is a valuable cybersecurity...
    Logical Security
    By: Pam Nigro
  • artificial intelligence AI graphic

    Assessing the pros and cons of AI for cybersecurity

    Artificial intelligence (AI) has significant implications...
    Cybersecurity Education & Training
    By: Charles Denyer
Subscribe For Free!
  • Security eNewsletter & Other eNews Alerts
  • eMagazine Subscriptions
  • Manage My Preferences
  • Online Registration
  • Mobile App
  • Subscription Customer Service

More Videos

Sponsored Content

Sponsored Content is a special paid section where industry companies provide high quality, objective, non-commercial content around topics of interest to the Security audience. All Sponsored Content is supplied by the advertising company and any opinions expressed in this article are those of the author and not necessarily reflect the views of Security or its parent company, BNP Media. Interested in participating in our Sponsored Content section? Contact your local rep!

close
  • Crisis Response Team
    Sponsored byEverbridge

    Automate or Fall Behind – Crisis Response at the Speed of Risk

  • Perimeter security
    Sponsored byAMAROK

    Why Property Security is the New Competitive Advantage

  • Duty of Care
    Sponsored byAMAROK

    Integrating Technology and Physical Security to Advance Duty of Care

Popular Stories

Internal computer parts

Critical Software Vulnerabilities Rose 37% in 2024

Coding

AI Emerges as the Top Concern for Security Leaders

Half open laptop

“Luigi Was Right”: A Look at the Website Sharing Data on More Than 1,000 Executives

Person working on laptop

Governance in the Age of Citizen Developers and AI

Shopping mall

Victoria’s Secret Security Incident Shuts Down Website

2025 Security Benchmark banner

Events

June 24, 2025

Inside a Modern GSOC: How Anthropic Benchmarks Risk Detection Tools for Speed and Accuracy

For today's security teams, making informed decisions in the first moments of a crisis is critical.

August 27, 2025

Risk Mitigation as a Competitive Edge

In today’s volatile environment, a robust risk management strategy isn’t just a requirement—it’s a foundation for organizational resilience. From cyber threats to climate disruptions, the ability to anticipate, withstand, and adapt to disruption is becoming a hallmark of industry leaders.

View All Submit An Event

Products

Security Culture: A How-to Guide for Improving Security Culture and Dealing with People Risk in Your Organisation

Security Culture: A How-to Guide for Improving Security Culture and Dealing with People Risk in Your Organisation

See More Products

Related Articles

  • Security newswire default

    (ISC)² Announces 2019 Information Security Leadership Awards Government Winners

    See More
  • Survey Says Management Perceptions May Pose Biggest Threat to Security Employment

    See More
  • Inside of water disposal pipe

    Critical infrastructure may be the subject of disruptive cyberattacks

    See More
×

Sign-up to receive top management & result-driven techniques in the industry.

Join over 20,000+ industry leaders who receive our premium content.

SIGN UP TODAY!
  • RESOURCES
    • Advertise
    • Contact Us
    • Store
    • Want More
  • SIGN UP TODAY
    • Create Account
    • eMagazine
    • eNewsletter
    • Customer Service
    • Manage Preferences
  • SERVICES
    • Marketing Services
    • Reprints
    • Market Research
    • List Rental
    • Survey/Respondent Access
  • STAY CONNECTED
    • LinkedIn
    • Facebook
    • YouTube
    • X (Twitter)
  • PRIVACY
    • PRIVACY POLICY
    • TERMS & CONDITIONS
    • DO NOT SELL MY PERSONAL INFORMATION
    • PRIVACY REQUEST
    • ACCESSIBILITY

Copyright ©2025. All Rights Reserved BNP Media.

Design, CMS, Hosting & Web Development :: ePublishing