April 29, 2006
Running Government Like A Business
Pentagon Halts Contractor Clearances
By Renae Merle
Washington Post Staff Writer
Saturday, April 29, 2006; D01
The Pentagon stopped processing security clearances for government contractors this week, potentially exacerbating a shortage of employees authorized to work on the government's most secret programs.The Defense Security Service blamed overwhelming demand and a budget shortfall for the halt, which caught the government contracting community by surprise. Already, 3,000 applications have been put on hold, said Cindy McGovern, a DSS spokeswoman.
"We're holding them [the applications] now to see if we can resolve the issue. The more drastic step would be not accepting them" at all, McGovern said, a step the agency considered but dropped for now.
The demand for security clearances among private companies has grown dramatically since the Sept. 11, 2001, terrorist attacks as the government increasingly relies on contractors to do intelligence gathering and work on classified programs. There has been growing frustration with the wait time, which some companies have described as up to a year, to obtain clearances for new employees. Some firms have reverted to gimmicks and large bonuses to attract employees with pre-existing clearances, and industry officials worry that this week's action will increase competition and salary demands.
The move affects not only defense contractors, but also those who work on projects for more than 20 other agencies, including NASA and the Department of Homeland Security.
"We have companies right now that have positions that are funded that they can't find people for," said Stan Soloway, president of the Professional Services Council. "This could completely shut the system down."
The Defense Security Service blames, in part, the sheer volume of requests. Between October and March, more than 100,000 security-clearance applications were submitted.
The service is also struggling with a budget shortfall, McGovern said, noting that its funding was cut by $20 million this year. McGovern said she did not know how much of a shortfall the agency faces.
Isn't it nice to know the grownups are in charge. Jeez, these idiots can't do anything right
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