Pentagon Halts Contractor Clearances/ WashPost

[TexasLawyer]

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 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.

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The decision is "both baffling and disturbing," Rep. Thomas M. Davis III (R-Va.), chairman of the Government Reform Committee, said in a letter to the agency yesterday.

http://www.washingtonpost.com/wp-dyn/content/article/2006/04/28/AR2006042801878_pf.html

[maddezmom]

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