Government/Military Trends
March 2003
The Department of Homeland Security: What It Means to You
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As 22 federal agencies with approximately 170,000 employees among them come together to form the new Department of Homeland Security, government contractors both large and small are scrambling to understand what the creation of the new agency means to them.
“There is so much uncertainty right now,” says Dan Heinemeier, president of the Government Electronics and Information Technology Association (GEIA). The organization is dedicated to helping its roster of member companies, all from the private sector, work more effectively with the government as technology solution providers. “With these 22 agencies that are coming together, they haven’t even thought through how it is going to work yet, let alone begun to understand their common requirements that they need from the industry.”
While the new department ramps up, organizations such as GEIA are working closely with the government to gain a better understanding of how private sector companies can support the new organization. They are also trying to determine the department’s future needs.
One finding uncovered by GEIA during extensive interviews with government officials and market analysts is the increasing emphasis on systems integration and information technology. As IT becomes more vital to increasing communications and enhancing security operations, opportunities may begin to arise for technology companies who, up until now, have had little experience working with the public sector.
Additionally, the government’s focus on homeland security may also signal opportunities for companies to supply solutions to local governments. This is particularly important as the Department of Homeland Security will be working closely with local security agencies to improve communications. Dan points to last year’s sniper attacks near Washington, D.C., as an example of how the various agencies can work together.
“We’re going to the local county government in Montgomery, MD., to talk to them about how they managed [the attacks] as a crisis management effort, how they interacted with federal and state officials, and of course local officials. We’re trying to draw some lessons learned that the Homeland Security department could use,” Heinemeier says. GEIA will be providing this analysis to the department as part of its work with department officials on how IT can help improve information flow.
Looking for Procurement Opportunities
No matter what the product or service these government contractors provide, they will still need to go through the sometimes overwhelming and lengthy procurement processes mandated by the government. But there are signs that the government may be streamlining some of these processes in order to meet the priority needs of the department.
The Homeland Security Act of 2002, which details the formation of the new department, outlines several provisions that provide the government flexibility in the purchase of goods and services in defense of or for recovery from attack. These include an increase in the simplified acquisition threshold for products used for humanitarian, peacekeeping, or contingency operations. The Act also allows for an increase in the federal micro-purchase level of up to $7,500. Federal agencies can make single procurements up to that amount without having to go through formal procurement procedures.
To help speed the procurement process further, organizations such as GEIA will also continue to provide access to the newest processes and specifications that have been approved by the department. This will ensure that companies are providing solutions that meet the new department’s needs.
While the Department of Homeland Security will not be the largest government agency, its creation is one of the most significant transformations of the government in a half-century. Many companies in the private sector will be watching the new organization closely to see how they can support its on-going agenda.