Federal identity programs boost biometrics market
By Chris Strohm cstrohm@nationaljournal.com July 3, 2008
For more on the contractors involved, see The Players
In announcing major new regulations in January that set national standards for driver's licenses under the 2005 Real ID Act, Homeland Security Secretary Michael Chertoff declared, "This is a great teaching moment on the challenges of really reconfiguring a society."
Chertoff's announcement was music to the ears of private companies and lobbyists who see major national security benefits, as well as the potential for big bucks, in helping government agencies verify individuals' identity. Federal programs like the one created by Real ID are being promoted by, and helping to boost, an industry that specializes in producing identity documents and collecting biometrics such as fingerprints and iris scans. Real ID does not have a biometrics requirement, but some industry officials think that it eventually will.
The estimated value of potential contracts to implement so-called federal identity-solutions programs has more than doubled since 2006, rising from $890 million to $2 billion this year, according to Jeremy Grant, a senior vice president for the Stanford Group, which advises investors. Not surprisingly, several companies vying for a share of the market have plowed money into their lobbying activities -- some by hiring former administration officials --according to interviews with industry insiders and a review of federal lobbying records.
But the industry faces a backlash from critics who argue that the government is recklessly weaving requirements for biometrics and identity verification into the fabric of the nation's homeland security without adequate public debate.
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