Security clearance backlog proves costly

The government’s backlog of defense security clearances, estimated to be as much as 270,000, is raising the salaries of those who hold them by 15 percent and costing taxpayers hundreds of millions of dollars each year.

As far back as 1981, the General Accounting Office, Congress’ investigative arm, reported that nearly $1 billion was wasted each year because of the backlog. That much could be wasted even today, according to industry and former Defense Department officials who say the 90 days it should take to get a clearance has ballooned into 400 to 500 days.

The Defense Security Service has long had clearance backlogs. But new problems, exacerbated by the September 11 terrorist attacks, are increasing a once-shrinking backlog, according to government and industry reports.

“Recent events, such as the terrorist attacks on the United States on September 11, 2001, and several high-profile espionage cases have heightened national security concerns and underscored the need for a timely, high-quality personnel security clearance process,” the GAO said.

“It markedly increases costs,” said Brendan Peter, a senior director at the Information Technology Association of America, an Arlington defense-industry group that represents contractors such as Lockheed Martin Corp. and General Dynamics Corp.

The background investigations by the Defense Security Service, part of the Department of Defense that performs background checks on military and civilian personnel, are the first step in safeguarding national security and are critical in identifying people who can be trusted with classified information, according to the GAO.

The situation creates a Catch-22: People who work on classified projects can’t start work until they are cleared, and employees can’t be cleared until they are hired for a classified project.

Because the clearance goes with the employee, and not the employer, it’s easier for a business to hire a new employee cleared to work on a classified project if that person has been investigated — even if the investigation took place when the employee was working for someone else, Mr. Peter said.

That has made employers hesitant to hire those without clearances. And it means that workers with clearances earn salaries 15 to 25 higher than those without, Mr. Peter said.

“That takes precedence over qualifications,” he said.

“It’s definitely a positive or a plus if someone is coming in with a clearance,” said Jeff Adams, a spokesman for Lockheed Martin.

Demand is so high that some Washington-area job fairs require job-seekers to have clearances even before talking with employers. At a March career fair, those included businesses such as General Dynamics Advanced Information Systems.

Increased salaries, salaries to nonproducing contractor employees, and increased time to finish a contract raise the costs.

“Eventually, all of these costs end up on the plate of the taxpayer,” said Frank Blanco, executive vice president for the Security Affairs Support Association, an industry group representing 1,800 companies.

The House Government Reform Committee will hold a hearing on the issue today to coincide with the release of a GAO report on the subject.

Story Continues →